Estimated Cost of Sales Tax Exemptions

at 5% Rate of Taxation*

 
ExemptionAmount
All retail grocery food$30,000,000
Agricultural feed, seed, fertilizer (non-farm)3,000,000
Beer1,200,000
Farm fuels1,500,000
Fuels for domestic use (including electricity)20,000,000
Fuels used in manufacturing5,000,000
Funeral services700,000
Manufacturing machinery & equipment10,000,000
Motor fuels (gasoline and diesel)19,000,000
Newspaper sales1,000,000
Non-prescription medications and supplies1,600,000
Prescription drugs1,800,000
Snack food (excluding soft drinks)4,300,000
Soft drinks2,000,000
Spiritous liquor1,200,000

Source: Vermont Tax Department, January 9, 1997.

* Subject to change pending publication of the Tax Expenditure Study required by Act #50 of the 1997 Session.