Vermont – Amended Sales and Use Tax and Fuel Tax Provisions

SALT Report 2564 – Vermont Governor Peter Shumlin signed legislation that amends certain sales and use tax provisions as well as a provision for the fuel gross receipts tax.

Drugs and Medical Items for Human Use

The sales and use tax exemption for drugs intended for human use, durable medical equipment, mobility enhancing equipment, prosthetic devices and supplies, blood, blood plasma, insulin, and medical oxygen has been expanded to include these items when used to diagnose human physical disabilities. This provision was effective June 5, 2013.

Nonresident Purchases

The use tax exemption for property purchased by nonresidents has been amended to reflect that the property must be used outside Vermont. This provision was effective June 5, 2013.

Fuel Gross Receipts Tax

Effective July 1, 2013, the 0.05% fuel gross receipts tax will apply to all retail sales of:

  • Heating oil, kerosene, and other dyed diesel fuels delivered to a residence or business,
  • Propane,
  • Natural gas,
  • Electricity, and
  • Coal

Currently, the tax only applies to those who receive more than $10,000 annually for sales of these fuels.

For Further Information

Vermont State Legislature – House Bill 295, Laws 2013