Senate Transportation hears that purchase-and-use tax rules, appraisal process burden low-income car buyers

The Senate Transportation Committee on Feb. 12 heard extensive questions about how Vermont calculates purchase-and-use tax when a vehicle is bought in a private sale and about barriers that keep low-income Vermonters from registering older or damaged cars.

Deputy Commissioner Matarusso of the Department of Motor Vehicles told the committee there is “an online calculation wizard” that allows users to enter trade information and get a tax calculation, and described two basic private-sale tracks: vehicles 19 years old or newer use the JD Power main trade value; vehicles 20 years old and older use JD Power low retail. “If you have a vehicle that's 19 years or newer or 20 years and older. If it's 19 years and newer, we're using the main trade value from JD Power. If it's 20 years and older, we're using the low retail,” Matarusso said.

The committee heard that dealers can prepare an appraisal form that DMV will accept at registration, and that an after-the-fact refund is possible when appraisals are submitted later. Matarusso said a dealer appraisal can be done at the time of registration and that…