Description of Principal Transportation Fund Revenue Sources

Purchase and Use Tax

A purchase and use tax that is equivalent to the sales tax rate is assessed, upon the occasion of first registration, on the purchase price of a motor vehicle (less allowance for the resale value of the buyer's used vehicle). The maximum tax on trucks over 6,100 pounds, agricultural vehicles, school buses, trailers and motorcycles is $750.00. The purchase and use tax is scheduled to return to 4% on July 1, 1997. In fiscal year 1997, the purchase and use tax is expected to constitute more than 27% of t he total transportation fund revenue.

Motor Fuel Taxes

Gasoline distributors are taxed at a rate of fifteen cents per gallon sold. Diesel fuel purchased at the pump is taxed at a rate of sixteen cents per gallon, with one cent dedicated to the Petroleum Cleanup Fund. Diesel fuel purchased at the pump is taxed at a rate of seventeen cents per gallon. Diesel fuel users who pay based on reported miles driven are taxed at a rate of twenty six cents. In fiscal year 1997, gasoline tax revenue is estimated to contribute over 30% of the total transportation fu nd revenue; diesel fuel taxes are forecast to be slightly less than 6% of fund revenue.

Motor Vehicle Fees

A registration fee is collected on all motor vehicle and trailers. The fee is determined by the type, size, weight, and purpose of the vehicle. In fiscal year 1997, motor vehicles fees will contribute more than 25% to total transportation fund revenue.

Source: Vermont Statutes Annotated.