Skip to main content
Find a Lawyer

Vermont Statutes Title 32. Taxation and Finance, § 9774. Rules for computing compensating use tax

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) Tangible personal property that has been purchased by a resident of the State outside this State for use outside this State, and subsequently becomes subject to the compensating use tax imposed under this chapter, shall be taxed on the basis of the purchase price of the property, provided however:

(1) that where a taxpayer affirmatively shows that the property was used outside the State by him or her for more than six months prior to its use within this State, the property shall be taxed on the basis of current market value of the property at the time of its first use within this State, but the value of the property, for compensating use tax purposes, may not exceed its cost; and

(2) that the compensating use tax on the tangible personal property brought into this State, other than for complete consumption or for incorporation into real property located in this State, and used in the performance of a contract or subcontract within this State by a purchaser or user for a period of less than six months may be based, at the option of the taxpayer, on the fair rental value of the property for the period of use within this State.

(b) For purposes of subdivision 9773(1) of this title, the tax shall be at the rate under that section, multiplied by the purchase price given or contracted to be given for the property or for the use of the property adjusted in the same manner as is the sales price under the sales tax to arrive at the sales price.

(c) For purposes of subdivision 9773(2) of this title, the tax shall be at the rate under that section, multiplied by the price at which items of the same kind of tangible personal property are offered for sale by the user.

(d) For purposes of subdivision 9773(3) of this title, the tax shall be at the rate under that section, multiplied by the purchase price given or contracted to be given for the service, including the consideration for any tangible personal property transferred in conjunction with the performance of the service adjusted in the same manner as is the charge for services under the sales tax to arrive at the sales price.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Vermont Statutes Title 32. Taxation and Finance, § 9774. Rules for computing compensating use tax - last updated January 01, 2024 | https://codes.findlaw.com/vt/title-32-taxation-and-finance/vt-st-tit-32-sect-9774/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard