Introduced by Representative Jewett of Ripton
Subject: Taxation; purchase and use tax; restored antique vehicles
Statement of purpose: This bill would amend the motor vehicle purchase and use tax with respect to taxation of antique motor vehicles by providing that the taxable cost of such motor vehicles shall not include the cost of restoration of the vehicle.
AN ACT RELATING TO PURCHASE AND USE TAXATION OF RESTORED ANTIQUE VEHICLES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 8902(5) is amended to read:
(5) “Taxable cost”-the purchase price as defined in subdivision (4) of this section or the taxable cost as determined under section 8907 or 8907a of this title. For any purchaser who has paid tax on the purchase or use of a motor vehicle that was sold or traded by the purchaser or for which the purchaser received payment under a contract of insurance, the taxable cost of the replacement motor vehicle other than a leased vehicle shall exclude:
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Sec. 2. 32 V.S.A. § 8907a is added to read:
§ 8907a. Restored antique motor vehicle taxable cost
(a) As used in this section, “restored antique motor vehicle” means an exhibition vehicle as defined in section 373 of this title of a model year 1940 or earlier, purchased on or after January 1, 1970, which at the time of purchase was not in operable condition, and which has been restored to operable condition.
(b) For the purpose of the tax imposed by this chapter, the taxable cost of a restored antique motor vehicle shall be the original purchase price paid by the person who first restores the vehicle to operable condition.
The Vermont General Assembly
115 State Street