{"id":376822,"date":"2016-03-31T21:37:03","date_gmt":"2016-04-01T02:37:03","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/vermont-law\/vermont-consumer-tax-laws.html"},"modified":"2016-06-20T14:00:00","modified_gmt":"2016-06-20T19:00:00","slug":"vermont-consumer-tax-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/vermont-law\/vermont-consumer-tax-laws.html","title":{"rendered":"Vermont Consumer Tax Laws"},"content":{"rendered":"\n
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Vermont Consumer Tax Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Taxes are a part of life. Governments impose taxes to raise revenue, regulate businesses or activities, and provide incentives for doing (or not doing) certain things. The federal tax system<\/a> is a labyrinth all to itself, relying mostly on income taxes. Most states rely on consumer taxes<\/a> to generate revenue.<\/p>\r\n

Taxes can also encourage or discourage certain activities or purchases by affecting the wider market \u2013 for example, high taxes on cigarettes are meant to discourage smoking. Consumer taxes include sales taxes, use taxes, so-called \u201csin taxes\u201d on alcohol and cigarettes, and gasoline taxes.<\/p>\r\n

Wherever you are, paying taxes is usually just a part of life. But knowing more can help you save money. Here\u2019s a quick summary of Vermont\u2019s consumer tax laws.<\/p>\r\n

Consumer Tax Laws in Vermont<\/h2>\r\n

Vermont currently imposes a six per cent rate of tax on sales. Numerous exceptions to the sales tax exist, however. Food, clothing, household fuels like electricity and gas, medical and dental items, and agricultural supplies are among the prominent items not taxed. There\u2019s also a use tax<\/a> of six per cent as well. Use taxes most often apply to items purchased out-of-state for use in-state. When New Hampshire (a state with no sales tax) is your neighbor, a use tax helps Vermont keep up its tax revenue.<\/p>\r\n

Vermont\u2019s \u201csin taxes\u201d cover alcohol and cigarettes. The tax on alcohol depends on the type and alcohol content of the beverage. Beer containing more than 6% alcohol is taxed at 55 cents per gallon while beer containing less than 6% alcohol is taxed at 26.5 cents per gallon. Wine is taxed at 55 cents per gallon and taxes on spirits depend on the gross revenue of the seller (the more they make, the higher the rate). Cigarette packs are required to carry a stamp and stamps must be purchased by sellers. Other tobacco products are taxed as well.<\/p>\r\n

The Green Mountain State recently raised its gas tax. The precise rate depends on market factors, but is currently around 26 cents per gallon.<\/p>\r\n\r\n
Sales Tax<\/b><\/td>\r\n6% (tit. 32, \u00a7 9771).<\/td>\r\n<\/tr>
Cigarette Tax<\/b><\/td>\r\n137.5 mills per cigarette or little cigar and for each 0.0325 ounces of roll-your-own tobacco (tit. 32, \u00a7 7771).<\/td>\r\n<\/tr>
Gasoline Tax<\/b><\/td>\r\n26\u00a2 (tit. 23, \u00a7 3106).<\/td>\r\n<\/tr>
Use Tax<\/b><\/td>\r\n6% (tit. 32, \u00a7 9773).<\/td>\r\n<\/tr>
Liquor Tax<\/b><\/td>\r\n

Beer: 55\u00a2 per gallon when containing more than 6% alcohol; 26.5\u00a2 per gallon when containing 6% or less alcohol.<\/p>\r\n

Wine: 55\u00a2 per gallon.<\/p>\r\n

Spirits and fortified wines: 5% if seller\u2019s gross revenue is $500,000 or less; 10% if seller\u2019s gross revenue is $500,001-$750,000; 25% if seller\u2019s gross revenue is more than $750,000.<\/p>\r\n<\/td>\r\n<\/tr>

Gambling Tax<\/b><\/td>\r\nNone. Vermont doesn\u2019t permit gambling.<\/td>\r\n<\/tr><\/tbody><\/table>\r\n

Related Resources for Consumer Tax Laws<\/h2>\r\n

You can find more general information about tax laws<\/a> on these pages. Tax rates and items that are taxed frequently change due to state budget needs. Updated information and announcements can be found at Vermont\u2019s Department of Taxes<\/a>. Finally, if you have further questions about Vermont consumer taxes, we recommend contacting a local tax attorney<\/a>.<\/p>\r\n

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