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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 Topic Tax Type
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. Calculation of Household Income; payments for respite care  Property Tax Credit, Renter Rebate Claim
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 of subscriptions for audio-only computer fitness classes Sales Tax
2019-03 Cannot be successfully redacted.    
2019-02 Cannot be successfully redacted.    
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 of prepackaged snack food by out-of-state vendor Sales and Use Tax, Meals Tax
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. Collection by New Hampshire location of Vermont business Sales and Use Tax
2018-07 Cannot be successfully redacted.    
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 The portion of Formal Ruling 2004-03 pertaining to sales tax on lancets is withdrawn. Medical Equipment and Supplies Exemptions Sales and Use Tax
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). Exemption for 501(c)(3) Entity Property Transfer Tax, Land Gains Tax
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. Solar Energy Storage Batteries Sales Tax
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. Capital Gain Treatment Income Tax
2018-02 The Federal solar-energy income tax credit does not pass through to Vermont corporate income tax. Solar Energy Credit Corporate Income Tax
2018-01  Cannot be successfully redacted.    
2017-07 Web retailer offers online software to its independent-contractor salespersons, who use the software to create a Webpage, manage sales orders, create a customer database, and write business newsletters. No sales tax because the independent contractors do not receive a tangible version of software and may not download it, but may only access the software remotely. Exemption for “remotely accessed” prewritten software Sales and Use Tax
2017-05 A proprietary blend of fruit- and vegetable-seed oils sold as a nutritional supplement qualifies as a “dietary supplement,” and therefore qualifies as exempt “food.” Nutritional supplements Sales and Use Tax
2017-03 Certain items used in gynecological practice are exempt “medical supplies” because they primarily serve a medical purpose, are not normally used in the absence of illness or injury, and are not capable of repeated use. Other items used in that practice are exempt “durable medical equipment” because they are used in diagnosis or treatment, can withstand repeated use, are primarily and customarily used to serve a medical purpose, generally are not useful to a person in the absence of illness or injury, and are not worn on the body. Medical supplies and durable medical equipment Sales and Use Tax
2017-02 A charge of $7 to a customer who uses an optional return label addressed to the retailer is not a “delivery charge” and not subject to sales tax. 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 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   Sales and Use Tax, Meals and Rooms 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 Income 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   Personal 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 Business Income Tax
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   Personal Income Tax
1995-01 Non-VT Resident Allocating to VT Non-VT Municipal Bonds   Personal 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   Personal 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    
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   Personal 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
1991-02C 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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