Vermont Statutes Title 32 Sec. 9774
Terms Used In Vermont Statutes Title 32 Sec. 9774
- Contract: A legal written agreement that becomes binding when signed.
- Personal property: All property that is not real property.
- Purchase price: means the measure subject to use tax and has the same meaning as sales price. See
- Purchaser: means a person who purchases property or who receives services taxable under this chapter. See
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Sales price: means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without deduction for the following:
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
- Tangible personal property: includes electricity, water, gas, steam, and prewritten computer software. See
- Use: means the exercise of any right or power over tangible personal property by the purchaser thereof and includes the receiving, storage or any keeping or retention for any length of time, withdrawal from storage, any installation, any affixation to real or personal property, or any consumption of that property. See
§ 9774. Rules for computing compensating use tax
(a) Tangible personal property that has been purchased by a resident of the State outside this State for use outside this State, and subsequently becomes subject to the compensating use tax imposed under this chapter, shall be taxed on the basis of the purchase price of the property, provided however:
(1) that where a taxpayer affirmatively shows that the property was used outside the State by him or her for more than six months prior to its use within this State, the property shall be taxed on the basis of current market value of the property at the time of its first use within this State, but the value of the property, for compensating use tax purposes, may not exceed its cost; and
(2) that the compensating use tax on the tangible personal property brought into this State, other than for complete consumption or for incorporation into real property located in this State, and used in the performance of a contract or subcontract within this State by a purchaser or user for a period of less than six months may be based, at the option of the taxpayer, on the fair rental value of the property for the period of use within this State.
(b) For purposes of subdivision 9773(1) of this title, the tax shall be at the rate under that section, multiplied by the purchase price given or contracted to be given for the property or for the use of the property adjusted in the same manner as is the sales price under the sales tax to arrive at the sales price.
(c) For purposes of subdivision 9773(2) of this title, the tax shall be at the rate under that section, multiplied by the price at which items of the same kind of tangible personal property are offered for sale by the user.
(d) For purposes of subdivision 9773(3) of this title, the tax shall be at the rate under that section, multiplied by the purchase price given or contracted to be given for the service, including the consideration for any tangible personal property transferred in conjunction with the performance of the service adjusted in the same manner as is the charge for services under the sales tax to arrive at the sales price. (Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1981, No. 170 (Adj. Sess.), § 14; 1991, No. 32, § 12, eff. June 1, 1991; 1993, No. 1 (Sp. Sess.), § 4, eff. Sept. 1, 1993; 2003, No. 68, § 34, eff. June 18, 2003; 2003, No. 68, § 63, eff. date, see note below.)