2005 Vermont Code - § 3003. — Imposition of tax; exceptions

§ 3003. Imposition of tax; exceptions

(a) A tax of 25 cents per gallon and a fee of one cent per gallon is imposed on each gallon of fuel established pursuant to the provisions of 10 V.S.A. § 1942:

(1) sold or delivered by a distributor; or

(2) used by a user.

(b) Collection of the tax and its payment to the state shall be as follows:

(1) the distributor shall collect the tax from a dealer or user on delivery of fuel into the dealer's or user's bulk tanks. The tax shall attach at the time of delivery into the bulk tank. When a distributor collects a tax from a dealer or user, the distributor shall pay the same to the commissioner with the monthly report required by section 3014 of this title.

(2) a user who uses fuel shall pay the tax to the commissioner as provided in section 3015 of this title. The tax shall attach at the time of the consumption of such fuel in the propulsion of a motor vehicle upon the highways of the state.

(c) A tax of three cents per gallon is imposed on each gallon of railroad fuel used in the state.

(d)(1) For users, the following uses shall be exempt from taxation under this chapter and be entitled to a credit for any tax paid for such uses under section 3020 of this title:

(A) uses, the taxation of which would be precluded by the laws and Constitution of the United States and this state;

(B) uses for agricultural purposes not conducted on the highways of the state;

(C) uses by any state, municipal, school district, fire district or other governmentally owned vehicles for official purposes;

(D) uses by any vehicle off the highways of the state;

(E) uses by motor buses registered in this state; and

(F) uses by any vehicle registered as a farm truck under section 367(f) of this title.

(2) Provided, however, that no tax shall be due with respect to fuel for use in any state, municipal, school district, fire district or other governmentally-owned vehicle, as long as the distributor takes from the purchaser at the time of sale an exemption certificate in the form prescribed by the commissioner; and provided, further, that no tax shall be due with respect to fuel delivered for farm use to a farm bulk fuel storage tank.

(e) A distributor may use as the measure of the tax so levied and assessed the gross quantity of diesel fuel purchased, imported, produced, refined, manufactured and compounded by the distributor, less one percent for shrinkage, loss by evaporation or otherwise, instead of the quantity sold, distributed or used. (Added 1981, No. 172 (Adj. Sess.), § 1; amended 1983, No. 107 (Adj. Sess.) eff. Feb. 29, 1984; 1985, No. 147 (Adj. Sess.), § 1; 1987, No. 282 (Adj. Sess.), § 6, eff. April 1, 1989; 1989, No. 51, § 2, eff. June 1, 1989; 1993, No. 65, § 1; 1999, No. 154 (Adj. Sess.), § 2.)