Vermont ~ Sales and Use Tax: Exemption on Sales of Agricultural Machinery Amended

Vermont’s sales and use tax exemption for agricultural machinery and equipment has been amended by changing the term “directly and exclusively” to “predominately” for the use requirement of the agricultural machinery or equipment. This changes the limitation percentage from 96% to 75%, making it easier to qualify for the sales tax exemption. In order to qualify for the exemption, the machinery and equipment must be used predominately, or 75% or more of the time, in the production for sale of tangible personal property on farms (including stock, dairy, poultry, fruit, and truck farms), orchards, nurseries, or in greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities for sale.

Act 100 (H.B. 864 ), Laws 2016, effective July 1, 2016

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