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H.444

Introduced by   Representatives McCullough of Williston and Masland of Thetford

Referred to Committee on

Date:

Subject:  Taxes; motor vehicle purchase and use; gas guzzler surcharge

Statement of purpose:  This bill proposes to impose a surcharge of $500.00 on the purchase or use of a vehicle with a gross vehicle weight of 10,000 pounds or less, of model year 2005 or later, if that vehicle is rated by the federal government as getting 21 miles per gallon or less in city driving.  On an annual basis, five percent of the proceeds of the surcharge shall be remitted to the department of motor vehicles for administrative costs, and the remainder shall be divided equally and remitted as energy conservation rebates to each tax‑paying purchaser, during the year, of a vehicle with a gross vehicle weight of 10,000 pounds or less, of model year 2005 or later, that is rated by the federal government as getting 35 miles per gallon or more in city driving.  The bill proposes that no rebate shall exceed $5,000.00, that multiple owners of the same vehicle shall share the rebate due on a single vehicle, and that remaining monies and those rebates due people who cannot be located shall remain in the transportation fund and be available for other uses.

AN ACT RELATING TO ADJUSTING THE MOTOR VEHICLE PURCHASE AND USE TAX TO PROVIDE DISINCENTIVES FOR THE PURCHASE OF CERTAIN VEHICLES THAT GET 21 MILES PER GALLON OR LESS AND INCENTIVES FOR THE PURCHASE OF VEHICLES THAT GET 35 MILES PER GALLON OR MORE

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

Sec. 1.  32 V.S.A. § 8903(h) is added to read:

(h)  There is imposed a surcharge of $500.00 on the purchase, subject to subsection (a) or (b) of this section, of a vehicle with a gross vehicle weight of 10,000 pounds or less, of model year 2005 or later, if that vehicle is rated by the federal government as getting 21 miles per gallon or less in city driving. 

Sec. 2.  32 V.S.A. § 8912 is amended to read:

§ 8912.  ALLOCATION OF FUNDS

(a)  The taxes collected under this chapter shall be paid into and accounted for in the transportation fund.

(b)  On an annual basis, the commissioner shall compute the revenues received under the surcharge imposed by subsection 8903(h) of this section and shall allocate five percent of those revenues to the department of motor vehicles for administrative costs incurred under this act.  The remainder shall be divided equally and remitted by the commissioner of motor vehicles as an energy conservation rebate to each person who, during the year, purchased and paid taxes due on a vehicle with a gross vehicle weight of 10,000 pounds or less, of model year 2005 or later, that is rated by the federal government as getting 35 miles per gallon or more in city driving; provided, however, that no rebate shall exceed $5,000.00.  Multiple owners of a single vehicle shall be entitled to a proportionate share of the rebate due on that single vehicle.  If an eligible rebate recipient cannot be located, that person’s share shall remain in the transportation fund and be available for other uses.  In addition, monies remaining after payment of rebates under this subsection shall remain in the transportation fund and shall be available for other uses.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us