2005 Vermont Code - § 9774. — Rules for computing compensating use tax

§ 9774. Rules for computing receipts and consideration

(a) The retail sales tax imposed under section 9771(1) of this title and the compensating use tax imposed under section 9773 of this title when computed in respect to tangible personal property wherever manufactured, processed or assembled and used by such manufacturer, processor or assembler in the regular course of business within the state, shall be based on the price at which items of the same kind of tangible personal property are offered for sale by him.

(b) Tangible personal property which has been purchased by a resident of the state outside of this state for use outside of this state and subsequently becomes subject to the compensating use tax imposed under this chapter, shall be taxed on the basis of the purchase price of the property, provided however:

(1) That where a taxpayer affirmatively shows that the property was used outside the state by him for more than six months prior to its use within this state, the property shall be taxed on the basis of current market value of the property at the time of its first use within this state but the value of the property, for compensating use tax purposes, may not exceed its cost.

(2) That the compensating use tax on the tangible personal property brought into this state (other than for complete consumption or for incorporation into real property located in this state) and used in the performance of a contract or subcontract within this state by a purchaser or user for a period of less than six months may be based, at the option of the taxpayer, on the fair rental value of the property for the period of use within this state.

(c) For purposes of section 9773(1) of this title the tax shall be at the rate under that section, multiplied by the consideration given or contracted to be given for the property or for the use of the property adjusted in the same manner as is the sales price under the sales tax to arrive at "receipts."

(d) For purposes of section 9773(2) of this title the tax shall be at the rate under that section, multiplied by the price at which items of the same kind of tangible personal property are offered for sale by the user.

(e) For purposes of section 9773(3) of this title the tax shall be at the rate under that section, multiplied by the consideration given or contracted to be given for the service, including the consideration for any tangible personal property transferred in conjunction with the performance of the service adjusted in the same manner as is the charge for services under the sales tax to arrive at "receipts." (Added 1969, No. 144, § 1, eff. June 1, 1969; amended 1981, No. 170 (Adj. Sess.), § 14; 1991, No. 32, § 12, eff. June 1, 1991; 1993, No. 1 (Sp. Sess.), § 4, eff. Sept. 1, 1993; 2003, No. 68, § 34.)