Introduced by Senator Lyons of Chittenden District and Senator Condos of Chittenden District
Subject: Conservation; taxation; alternative fuel vehicles; motor vehicle purchase and use tax; state infrastructure bank
Statement of purpose: This bill proposes to exempt alternative fuel vehicles from the motor vehicle purchase and use tax, an exemption that would expire on July 1, 2007. It also proposes to create a program within the state infrastructure bank to provide low interest or interest free loans to facilitate the constructing, converting, and acquiring of publicly available recharging and refueling infrastructure for alternative fuel vehicles. It proposes to appropriate $200,000.00 from the transportation fund for purposes of the loan program.
AN ACT RELATING TO EXEMPTING ALTERNATIVE FUEL VEHICLES FROM THE MOTOR VEHICLE PURCHASE AND USE TAX, AND ENCOURAGING DEVELOPMENT OF INFRASTRUCTURE FOR THESE VEHICLES
It is hereby enacted by the General Assembly of the State of Vermont:
(12)(A) “Alternative fuel vehicle” means a self-propelled vehicle that is registered and titled in this state for operation on the highways, that meets emission standards established for the California Super Ultra Low Emissions Vehicle (SULEV), and that is propelled primarily by:
(i) Liquefied petroleum gas.
(ii) Natural gas.
(v) Solar energy.
(B) “Alternative fuel vehicle” does not include bifuel vehicles, which are capable of operating on either gasoline or an alternative fuel but are not capable of operating on a mixture of two or more fuel types; but it does include dedicated vehicles, which are vehicles that are capable of operating only on a single alternative fuel. If the vehicle is powered by electricity, it may include an onboard auxiliary motor that is designed and used to recharge batteries.
(C) “Alternative fuel vehicle” does not include vehicles, such as a golf cart, an implement of husbandry, a motorized wheelchair, or a forklift, that are not designed primarily for operation on highways.
Sec. 2. 32 V.S.A. § 8911 is amended to read:
§ 8911. EXCEPTIONS
The tax imposed by this chapter shall not apply to:
* * *
motor vehicles registered in this state by nonresidents under the International
* * *
motor vehicles for which salvage certificates of title are obtained pursuant to
section 2092 of Title 23
titles issued to the manufacturer of a vehicle which has been returned to that
manufacturer pursuant to any proceeding brought under chapter 115 of Title 9
(21) a motor vehicle registered at the pleasure car rate:
(A) donated to a Vermont resident having a total income of no more than 185 percent of the federal poverty level as designated by a Vermont state agency, a regional Office of Economic Opportunity, or a Vermont charitable entity that has a principal purpose of providing automobiles to low income persons in this state, and which is exempt under Section 501(c)(3) of the Internal Revenue Code; and
(B) donated by an organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and that has a principal purpose of providing automobiles to low income persons in this state, or by a licensed automobile dealer;
(22) alternative fuel vehicles, as defined in section 8902 of this title.
Sec. 3. 10 V.S.A. § 280g(e) is added to read:
(e) An alternative fuel vehicle infrastructure loan program for low interest or interest free loans is created within the state infrastructure bank to facilitate the constructing, converting, and acquiring of publicly available facilities for storage, compression, charging, and dispensing of alternative fuels for alternative fuel vehicles, as defined in 32 V.S.A. § 8902.
Sec. 4. APPROPRIATIONS
The sum of $200,000.00 is appropriated from the transportation fund in fiscal year 2006 to the state infrastructure bank program fund established under 10 V.S.A. chapter 12 to be used for the alternative fuel vehicle infrastructure loan program.
Sec. 5. SUNSET
32 V.S.A. § 8911(22) (exempting alternative fuel vehicles from the purchase and use tax) is repealed on July 1, 2007.
The Vermont General Assembly
115 State Street