Formal Rulings

A Formal Ruling may provide general guidance to the public, but is binding only for the requesting taxpayer, and is limited to the facts as presented and the law in effect at the time of the ruling.

No. Subject category
2019-05 Claimant for property tax relief or renter rebate must be income-eligible, determined by level of Household Income (HHI). HHI excludes State payments for foster care, adult foster care, or care of a family member with a developmental disability.  Payments received for respite care were not covered by that exclusion. Property tax adjustment, renter rebate; calculation of Household Income; payments for respite care 
2019-04 Audio fitness classes which may be streamed or downloaded are subject to sales tax as “specified digital products” or as “access to audio programming systems.”  Charges are sourced to the customer’s state of residence. Sales tax; sales of subscriptions for audio-only computer fitness classes
2019-03 Cannot be successfully redacted.  
2019-02 Motor vehicle lease agreement requires, in case of total loss of vehicle, that lessee pays remaining lease payments and lessor transfers vehicle to lessee.  Transfer is not subject to sales tax, which exempts motor vehicle transfers.  It may be subject to motor vehicle purchase and use tax, administered by Department of Motor Vehicles. Sales and use tax; transfer of totally destroyed motor vehicle to lessee
2019-01 Sales and use tax nexus is created when an out-of-state vendor makes sales into Vermont of at least $100,000 or 200 sales, including nontaxable sales.  If out-of-state vendor’s sales do not exceed the nexus threshold, the vendor is not required to register for sales and use tax or meals tax or to file returns reporting $0 tax. Sales and use tax, meals tax; sales of prepackaged snack food by out-of-state vendor
2018-08 A retailer with a Vermont store who also operates a New Hampshire store must collect Vermont use tax at the New Hampshire location for sales or rentals of taxable items which are to be delivered to a Vermont location or which show a Vermont address for the renter on the rental contract. Sales and use tax; collection by New Hampshire location of Vermont business
2018-07 No redacted version for publication.  
2018-06 Sales of blood glucose testing meters and lancing devices used to obtain blood for use in the testing meter both qualify as durable medical equipment, exempt from sales and use tax.  Blood testing strips used with the testing meters and lances used with the lancing device qualify as medical supplies, exempt from sales and use tax.
The portion of Formal Ruling 2004-03 pertaining to sales tax on lancets is withdrawn.
Sales and Use Tax; Medical Equipment and Supplies Exemptions
2018-05 The property transfer tax and land gains tax exemptions available to an entity which has qualified for Federal tax-exempt status under Internal Revenue Code Section 501(c)(3) are only available if the entity has acquired Federal designation as a qualified 501(c)(3); the Commissioner has no authorization to determine whether an entity is qualified under 501(c)(3). Property Transfer Tax, Land Gains Tax; Exemption for 501(c)(3) Entity
2018-04 Solar energy storage batteries are not manufacturing equipment, because they do not generate energy, but merely store it.  Purchase of the storage batteries by an electric generating business is therefore not exempt from sales tax as manufacturing machinery and equipment. Sales Tax; Solar Energy Storage Batteries
2018-03 Property received by the remainderman from the mother’s trust created by her will has a holding period for capital gain purposes which began at the time of creation of the remainder interest - that is, at the time of the mother’s death. Income Tax; Capital Gain Treatment
2018-02 The Federal solar-energy income tax credit does not pass through to Vermont corporate income tax. Corporate Income Tax; Solar Energy Tax
2018-01  No Formal Ruling was issued.  
2017-07 Applicability of Sales and Use Tax to Charges for Online Product Sales and Use Tax
2017-05 Applicability of Sales and Use Tax to Its Sales of Food Product Sales and Use Tax
2017-03 Applicability of Sales and Use Tax to Seven Types of Items Used In A Medical Practice Sales and Use Tax
2017-02 Application of Sales Tax to Return Shipping Fees Sales and Use Tax
2016-15 Applicability of Sales Tax to the portion of the retail tire price which represents the Federal Excise Tax on tires Sales and Use Tax
2016-14 Applicability of Sales Tax to sales of certain medical equipment, parts and related items Sales and Use Tax
2016-13 Applicability of Sales Tax to leases of photocopy machines and printers to its customers Sales and Use Tax
2016-12 Applicability of Sales Tax to your sales of custom signs Sales and Use Tax
2016-11 Applicability of Property Transfer Tax to two transactions Property Transfer Tax
2016-08 Applicability of Sales Tax to charges for instruction Sales and Use Tax
2016-06 Applicability of Property Transfer Tax to a purchase of property by a church which is eligible for nonprofit status under Federal tax law Property Transfer Tax
2016-05 Applicability of Property Transfer Tax to its proposed acquisition of real property Property Transfer Tax
2016-04 Method of invoicing when Sales Tax is involved Sales and Use Tax
2016-03 Applicability of Sales and Use Tax to mobile, point-of-sale, electronic devices Sales and Use Tax
2016-02 Applicability of Sales Tax to your sales in Vermont of your product Sales and Use Tax
2016-01 Applicability of Sales and Use Tax to your product Sales and Use Tax
2015-04 Applicability of Vermont Income Tax to the flow-through of a capital gain Income Tax
2015-03 Applicability of Sales and Use Tax to its purchases of materials and its sales of manufactured housing Sales and Use Tax
2015-02 Applicability of Sales Tax to your Customer Charges Sales and Use Tax
2015-01 Applicability of Sales and Use Tax to Conference Bridging and Meeting Collaboration Products Sales and Use Tax
2014-03 Applicability of Sales Tax to Sales of Medical Equipment and Other Products Sales and Use Tax
2014-02 Applicability of Use Tax to Free Samples Sales and Use Tax
2014-01 Applicability of Sales Tax to Primer and Paint Purchased by an Auto Body Repair Shop for Use Sales and Use Tax
2013-08 Income Tax Withholding Requirements for Certain Stock Option Proceeds Withholding Tax
2013-07 Applicability of the Rooms Tax to a Lease Meals and Rooms Tax
2013-04 Applicability of Sales Tax on a Purchase from a Manufacturer and Resale to Customers or their Installing Contractor Sales and Use Tax
2013-03 Applicability of Rooms Tax to a $1.00 per Room Charge Meals and Rooms Tax
2013-02 Application of Sales Tax to Sales of a Combination Drug-Medical Device Sales and Use Tax
2012-12  Application of Sales Tax on Providing Safes to Customers as Part of Cash Security Services Sales and Use Tax
2012-10 Application of Sales Tax Exemption for Fuels Used in Manufacturing Sales and Use Tax
2012-09 Application of Rooms Tax to a Block of Rooms Reserved by an Airline for its Employees Meals and Rooms Tax
2012-08 Use of Sales Tax Exemption Certificates Sales and Use Tax
2012-07 Application of Land Gains Tax on Certain Transfers - Land Held Over Six Years Land Gains Tax
2012-06 Property Transfer Tax Implications of Proposed Transfers of Property Property Transfer Tax
2012-05 Application of Sales and Use Tax to the Concrete Foundations Used to Support Wind Towers Sales and Use Tax
2012-04 Application of Sales and Use Tax on Anchor Bolt Rings Used as Part of the Real Property in the Wind Generation Sales and Use Tax
2012-03 Application of Sales and Use Tax on Sales of Certain Drugs or Prosthetics to Hospitals and Surgery Centers in VT Sales and Use Tax
2012-02 Application of Sales and Use Tax to Certain Activities and Products Sales and Use Tax
2012-01 Application of Sales and Use Tax to Purchase of an All-Terrain Vehicle for Use in Business Sales and Use Tax
2011-15 Application of Sales and Use Tax on Martial Arts Lessons Sales and Use Tax
2011-14 Application of Sales & Use Tax and Meals & Rooms Tax to Internet Retail Sales of Prepackaged Flavored Peanuts Sales and Use Tax, Meals and Rooms Tax
2011-12 Applicability of Sales Tax to Payment of a Court Judgment or from a Third Party Guarantor Resulting From a Lease Default on a Financed Sale Sales and Use Tax
2011-11 Ruling Regarding the Applicability of Sales and Use Tax to a Medical Records Business Sales and Use Tax
2011-08 Ruling Regarding the Determination of a Holding Period for Property Under the Land Gains Tax Laws Land Gains Tax
2011-06 Application of the Vermont Sales Tax to Layaway Sales and Partial Payment Sales Sales and Use Tax
2011-05 Application of the Vermont Sales Tax to Certain Barn Lighting Products Sales and Use Tax
2011-02 Tax Implications of a Proposed Property Lease Swap Between Town and School District Property Tax
2011-01 Vermont Sales Tax on Products to Which a Certain Type of Credit is Applied Thus Reducing the Cost to the Purchaser Sales and Use Tax
2010-15 Taxability of Sales Involving Rebates Sales and Use Tax
2010-13 Taxability of Lease Agreements for Equipment Streamlined Sales and Use Tax
2010-11 Taxability of Compression Clothing Sales and Use Tax
2010-06 Taxability of a Certain Line of Custom Fitted Sports Mouth Guards Sales and Use Tax
2010-05 Taxability of Software Programs Used in Car Dealerships for Inventory, Service, Etc. Sales and Use Tax
2010-04 Whether a Nonprofit Public Corporation is Exempt from Meals and Rooms, Sales and Use or Any Other Tax Meals and Rooms Tax, Sales and Use Tax
2010-02 Applicability of VT Sales Tax to Soy Nut Products Sales and Use Tax
2010-01 Applicability of VT Sales Tax for Certain Fuels, Propane, Wood Pellets, Fire Logs and Kerosene for Domestic Use Sales and Use Tax
2009-12 Whether a bank is subject to Vermont Corporate Income Tax or Financial Institutions Franchise Tax Corporate Income Tax
2009-08 Application of Sales and Use Tax on Membership Fees for Prescription Savings Club Cards Sales and Use Tax
2009-07 Whether Specialty Bathtubs Qualify for the Durable Medical Equipment Exemption to Vermont’s Sales and Use Tax Sales and Use Tax
2009-06 Whether Certain Services Are Tax Exempt Sales and Use Tax
2009-05 Whether Drying Kiln is Exempt from Sales & Use Tax Sales and Use Tax
2009-04 Application of the Durable Medical Equipment Exemption to Vermont’s Sales and Use Tax Sales and Use Tax
2009-03 Inclusion of Federal Excise Tax in Sales Tax Calculation Sales and Use Tax
2009-02 Application of the Sales Tax for Retinal Enhancements Glaucoma Analysis Machines Sales and Use Tax
2008-01 Land Gains Tax Implications Based on Foreclosure Property Land Gains Tax
2007-09 Whether Amplified Phones Are Subject to Sales and Use Tax Sales and Use Tax
2007-08 Whether Various Products Marketed for and Used by Persons Having Undergone Mastectomies, Lumpectomies or Other Breast Surgeries, are Subject to Sales and Use Tax Sales and Use Tax
2007-07 Whether Sales and Use Tax Applies to the Sale of Over-the-Counter and Prescription Drugs to be Administered to Domesticated Animals Kept as Pets Sales and Use Tax
2007-06 Whether Items Described by the Company as Durable Medical Equipment Sold at Retail Are Subject to Sales and Use Tax Sales and Use Tax
2007-05 Whether Sanitation Equipment and Chemicals Used Are Exempt Under the Manufacturing Exemption to the Sales and Use Tax Sales and Use Tax
2007-04 Sales and Use Tax Implications from the Sale of Electronically Downloaded Computer Software Sales and Use Tax
2007-03 Tax on Use of Inkjet Cartridge Refilling Machine Sales and Use Tax
2007-02 Sale and Installation of Warehouse Racking Systems Sales and Use Tax 
2007-01 Estimated Tax Payments On Behalf of Non-Resident Shareholders Estimated Tax
2006-08 Computer Software and Service Remote Monitoring and Service of Computers Sales and Use Tax
2006-07 Medical Devices Sales and Use Tax
2006-06 Medical Devices Sales and Use Tax
2006-05 Medical Devices Sales and Use Tax
2006-04 Medical and Non-Medical Veterinary Supplies Sales and Use Tax
2006-03 Medical Devices Sales and Use Tax
2006-02 Training and Marketing Videos and Television Commercials  Sales and Use Tax
2006-01 Nicotine Replacement Product Sales and Use Tax
2005-01 Sale by Nonprofit Corporation of Substantially All of Its Interest in LLC Land Gains Tax
2004-08 Refundable Deposits Sales and Use Tax
2004-07 Meals and Rooms and Property Transfer Tax Consequences of Certain Transactions Relating to a Multi site Vacation Club and Time Share Plan Meals and Rooms Tax
2004-06 Online Bill Payment Services Sales and Use Tax
2004-05 Online Software Use Sales and Use Tax
2004-03

Medical Supplies

The portion of Formal Ruling 2004-03 pertaining to sales tax on lancets is withdrawn.

Sales and Use Tax
2004-02 Charges for Records Retrieval, Equipment Used for Records Retrieval Sales and Use Tax
2004-01 Transfer of LLC Membership Interest in VT Real Property  Property Transfer Tax
2003-01 Copy Center Equipment Copiers at Client Locations Sales and Use Tax
2002-07 Taxable Sales Meals and Rooms Tax
2002-06 Taxability of Motor Fuels Imported into the State Fuel Gross Receipts Tax
2002-05 Amusement Charge Sales and Use Tax
2002-04 Direct Pay Permit Sales and Use Tax
2002-03 Dental Products Sales and Use Tax
2002-02 Transfer from Company A to Partnership of Company A & B Property Transfer Tax, Land Gains Tax
2002-01 Investment & Holding Company Corporate Income Tax
2001-02 Refund for Returned Merchandise Sales and use Tax
2001-01 Trust Individual Income Tax
2000-03 Applicability of Meals and Rooms Tax When the Meal is Provided at No Charge or at a Discount Meals and Rooms Tax
2000-02 State Instrumentality Meals and Rooms Tax
2000-01 Purchases Made in Another State Sales and Use Tax
1999-07 Income Allocation and Interest Income Corporate Income Tax
1999-06 Economic Incentive Credit and Year of Investment  Business Tax Credit
1999-05 Charitable Organization and Contract to Run Meals and Rooms Tax
1999-04 Medical Devices Sales and Use Tax
1999-03 Publications and Newspapers Sales and Use Tax
1999-02 Floor Sales & Installation Contractors Sales and Use Tax
1999-01 Nonprofit Organization Public Support Test IRS Land Gains Tax
1998-05 Exempt Organizations Meals and Rooms Tax
1998-04 Casual Sale Sales and Use Tax
1998-03 Qualification Meals and Rooms Tax, Alcoholic Beverage Tax
1998-02 Newspapers Sales and Use Tax
1998-01 Timeshare and Interval Ownership  Land Gains Tax
1997-10 Sale from Partnership to Newly Formed Ltd. Partnership Property Transfer Tax
1997-09 Holding Period Land Gains Tax
1997-08 Ownership Property Tax
1997-07 Institutions and Food Service to Patients Meals and Rooms Tax
1997-06 Dental Supplies and Toothbrushes Sales and Use Tax
1997-05 Fire Logs and Fire Starter  Sales and Use Tax
1997-04 Economic Incentive Credit Tax Credit
1997-02 Manufacturing Processing Support Sales and Use Tax
1996-14 Internet Mall Sales and Use Tax
1996-13 Economic Incentive Credit Tax Credit
1996-12 Advertising Agency Products Sales and Use Tax
1996-11 Dental Equipment and Supplies Sales and Use Tax
1996-10 Telecommunications Business Sales and Use Tax
1996-09

Pay Per View Movie Videos, Satellite or Cable Television Programming, And Pay Per Use Video Games

Sales and Use Tax
1996-08 Leasing and Financing Sales and Use Tax
1996-07 Water Treatment Systems Sales and Use Tax
1996-06 Toll Road Sales and use Tax
1996-05 Over the Counter Medical Product Sales and Use Tax
1996-04 The Exchange of An Item For A Certain Dollar Amount Contribution Sales and Use Tax
1996-03 Agriculture Composting Sales and Use Tax
1996-02 Manufacturing Production Monitoring Sales and Use Tax
1996-01 Sales by Exempt Organizations Sales and Use Tax
1995-25 Nexus Sales and Use Tax
1995-23 Medical Supplies Sales and Use Tax
1995-22 Service Calls, Installation, Shipping Charges, Relocate and Reinstall, Equipment, and Training Sales and Use Tax
1995-21 Manufacturing Equipment for Map Making Sales and Use Tax
1995-20 Sales and Use Tax Law Sales and Use Tax
1995-19 Exempt Organization Food Sales Meals and Rooms Tax
1995-18 Computer Software, Sales or Lease, Maintenance, Training Sales and Use Tax
1995-17 Leases Sales and Use Tax
1995-16 Proper Reporting of Captive Insurance Premium Tax Insurance Premium Tax
1995-15 Leaseback Arrangement Sales and Use Tax
1995-14 Requirement to Collect Sales and Use Tax Sales and Use Tax
1995-13 Manufacturer and Seller of Business Forms Sales and Use Tax
1995-12 Transfers to Treatment or Incineration Plant Solid Waste Franchise Tax
1995-11 Prosthesis Bathing Suits  Sales and Use Tax
1995-09 Qualifications of Investment Holding Company Corporate Income Tax
1995-08 Cellular Phone Service Phones Provided Sales and Use Tax
1995-07 Manufacturing Fuels Used Sales and Use Tax
1995-06 Certain Tangible Property Sold by A Historical Society Sales and Use Tax
1995-05 Medical Supplies Sales and Use Tax
1995-04 Nexus Corporate Income Tax
1995-03 Right or License To Use A Photographic Transparency or Reproduced Image Sales and Use Tax
1995-02 Non-VT Resident Allocating to VT Non-VT Municipal Bonds Individual Income Tax
1995-01 Non-VT Resident Allocating to VT Non-VT Municipal Bonds Individual Income Tax
1994-12 Sales From Partnership to New Corporation Property Transfer Tax
1994-11 Conveyance to Trust and Eligibility for Program Land Use Change Tax
1994-10 Conveyance to Trust and Eligibility for Program Land Use Change Tax
1994-09 Drop Shipment and Requirement to Collect Tax Sales and Use Tax
1994-08 Drop Shipment and Requirement to Collect Tax Sales and Use Tax
1994-07 Activities of Vermont Antiques Dealers Sales and Use Tax
1994-06 Can A Contractual Agent of Various Tax Exempt Organizations Purchase Goods And Supplies Free From Sales And Use Tax Sales and Use Tax
1994-05 Municipal Housing Authorities  Offset of Refunds
1994-04 Cooperative Housing Property Tax
1994-03 Veterinary Supplies and Computer Diagnostics Sales and Use Tax
1994-02 Substantial Net Operating Loss Carry-Forward Corporate Income Tax
1994-01 Nonprofit Organization Building Materials Sales and Use Tax
1993-08 Computer Software Customized and off-the-shelf Computer Services Sales and Use Tax
1993-07 Long Term Lease, Right of First Refusal Property Transfer Tax
1993-05 Computer Software, Custom or Off-the-Shelf Sales and Use Tax
1993-04 Contracts with Exempt Organizations Sales and Use Tax
1993-03 Nexus - Apportionment Corporate Income Tax
1993-02 Net Operating Loss, Carryforward and Carryback Corporate Income Tax
1993-01 Permanent Resident (30 Day Occupancy) Meals and Rooms Tax
1992-13 Motor Carrier Employees Exemption Mechanics Individual Income Tax
1992-12 Investment and Holding Company Corporate Income Tax
1992-11 Sales by 501(c)(3) Organization Sales and Use Tax
1992-10 Investment and Holding Company Corporate Income Tax
1992-09 Investment and Holding Company Corporate Income Tax
1992-07 Direct Pay Permit when Use Tax Payment is Due Sales and Use Tax
1992-06 Property in Revocable Trust Property Tax Rebate
1992-05 Health and Fitness Club Sales and Use Tax
1992-03 Application of Sales and Use Tax to the Licensing of Mailing Lists Contained On Magnetic Tape Sales and Use Tax
1992-02 Application of Taxes to an Electronic Information and Communications Product Sales and Use Tax
1992-01 Manufacturing Electrical Generating Sales and Use Tax
1991-09 Net Loss Carryforward to Subsidiary Holding Company Corporate Income Tax
1991-08  How to Calculate Sales and Use Tax When Customers Present Coupons Sales and Use Tax
1991-07 Interest and Dividends from US Treasury Exemption Individual Income Tax
1991-05 Publication Fulfillment Company Sales and Use Tax
1991-04 Application of Sales and Use Tax to Double-Wide Mobile Homes Sales and Use Tax
1991-03 Photography Sales and Use Tax
1991-02 Investment and Holding Company Corporate Income Tax
1991-01 Payment in Lieu Of Taxes (PILOT) To A Town Hosting A Regional Solid Waste Facility Property Tax
1990-05 Cigarette Stamp Tax to Purchases by Indians For Resale Sales and Use Tax
1990-04 Telecommunications Services and Telecommunications Products Telephone Gross Receipts Tax
1990-02 Agricultural Feed Storage in Plastic Bags Sales and Use Tax

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