State Sales Tax Rates

State Sales Tax Rates Vermont State Sales Tax 2014

Vermont Sales Tax 2014
Vermont State Sales Tax for 2014 Maximum Municipal Sales Tax

6.00%

1.00%

What is the Vermont Sales Tax?

The Vermont state sales tax is 6%, with a maximum possible sales tax (including local and municipal sales taxes) of 7%.

Local governments in Vermont are allowed to add a local sales tax of up to 1 percent on top of the VT state sales tax for all qualifying sales in their jurisdiction - so the actual sales tax paid on any purchase in Vermont can be up to 7% depending on location.

Burlington, Dover, Killington, Manchester, Middlebury, Rutland Town, South Burlington, Stratton, Williston, and Winhall all charge a 1% "Local Option" sales tax on top of the 6% Vermont state sales tax. Special Vermont sales taxes on prepared meals (9%) and on alcoholic beverages (10%) can both be taxed an additional 1% by these counties as well.

What sales are exempt from the Vermont Sales Tax?

Vermont Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. Vermont completely exempts unprepared food and groceries, prescription drugs, and non-prescription drugs from the Vermont state sales tax.

Vermont does not have special sales tax rates for certain types of purchase, a common practice in many states for goods such as food and clothing.Like many other states, Vermont levies a special sales tax on prepared food from restaraunts or other locations. The Vermont restaraunt sales tax is 10%.

Generally, the Vermont sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the Vermont sales tax if they provide the seller with a Vermont Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in Vermont), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how Vermont handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] Vermont sales tax information on Tax-Rates.org
http://www.tax-rates.org/Vermont/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html