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Introduced by   Representatives Masland of Thetford and McCullough of Williston

Referred to Committee on


Subject:  Motor vehicles; purchase and use tax; low-emission vehicle exemption; large engine displacement tax

Statement of purpose:  This bill proposes to create an exemption in the purchase and use tax law for the first $10,000.00 of the purchase price of an alternative fuel vehicle, and to fund the cost of the exemption through a tax on large engine vehicles.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 8911(22) is added to read:

The tax imposed by this chapter shall not apply to:

* * *

(22)  the first $10,000.00 of taxable cost of an alternative fuel vehicle.  For this purpose, “alternative fuel vehicle” means a motor vehicle which meets emission standards established for the California Super Ultra Low Emissions Vehicle (SULEV), as incorporated by reference in the Vermont agency of natural resources air quality rules, and which is:

(A)  propelled only by one or more of the following fuels:  liquefied petroleum gas, natural gas, hydrogen, electricity, or solar energy; or

(B)  a hybrid electric vehicle, combining two or more power train technologies using one or more energy storage technologies, and using at least one of the fuels listed in subdivision (A) of this subdivision (22) to assist in or provide full acceleration of the vehicle, and which has regenerative braking capability.

Sec. 2.  32 V.S.A. § 8924 is added to read:


(a)  In addition to any other tax imposed by this chapter, there is imposed an engine displacement tax on the sale or use of a motor vehicle in this state.  For the purposes of this section, a motor vehicle includes a pleasure car as defined in 23 V.S.A. § 4 or a light truck or sports utility vehicle.  The tax, together with the motor vehicle purchase and use tax imposed in this chapter shall be collected by the commissioner, and all provisions of law relating to the administration, enforcement, and collection of the purchase and use tax shall be applicable to the engine displacement tax.

(b)  The engine displacement tax shall be an amount equal to $1.00 for each cubic inch of engine displacement in excess of 200 cubic inches.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont