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BILL AS INTRODUCED 2007-2008

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H.407

Introduced by Representative McCullough of Williston

Referred to Committee on

Date:

Subject:  Taxes; motor vehicle purchase and use; low mileage surcharge

Statement of purpose:  This bill proposes to impose a purchase and use tax surcharge on low mileage vehicles, and to provide purchase and use tax rebates for high mileage vehicles.

AN ACT RELATING TO PURCHASE AND USE TAX SURCHARGE AND REBATE BASED ON VEHICLE MILEAGE

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 purchase and use tax 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 2006 or later, if that vehicle is rated by the federal government at 21 miles or less per gallon in city driving.  This surcharge shall be subject to all of the provisions of the purchase and use tax in this chapter.


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 title and shall allocate five percent of those revenues to the department of motor vehicles for administrative costs.  The remainder shall be paid by the commissioner of motor vehicles as an energy conservation rebate to each person who during the prior calendar year paid purchase and use taxes related to a vehicle with a gross vehicle weight of 10,000 pounds or less, of model year 2006 or later, rated by the federal government at 35 miles per gallon or more in city driving; provided, however, that the rebate amount shall be rounded to the nearest dollar, and shall not exceed $5,000.00 per person.  Multiple owners of a single vehicle shall be paid a per capita portion of the rebate amount.  Undeliverable and unclaimed rebates and any remaining funds shall revert to the transportation fund. 



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us