A sales tax holiday is a specific period of time during which select goods are exempt from state sales and use tax. These tax-free periods may or may not extend to local sales and use taxes in addition to state sales and use tax.
Vermont provided for sales tax holidays in 2003, 2004, 2008, 2009 and 2010:
- Sales Tax Holiday (2008, 2009, 2010)
- Energy Star Sales Tax Holiday (2008)
- Personal Computers Sales Tax Holiday (2003, 2004)
No sales tax holidays have been announced for 2016.
For all tax-free periods, the Vermont Department of Taxes provided guidelines for the following situations:
- Back orders and order dates
- Bundled transactions
- Coupons and discounts
- Different time zones
- Exchanges and returns
- Gift certificates
- Items costing more than $2,000
- Layaways and rain checks
- Multiple items on one invoice
- Splitting items normally sold together
- Taxes collected in error
- Use tax
- Vendor responsibilities
Sales Tax Holiday
During the general sales tax holidays, which ran for 2 days in July 2008 and 1 day each in August 2009 and March 2010, taxable tangible personal property costing $2,000 or less and purchased for personal use was exempt from state and local option sales tax.
All vendors making sales of qualifying items during the tax-free period were required to participate, including registered out-of-state vendors.
Charges for the following transactions remained subject to sales tax during the sales tax holiday:
- Amusement (including ski passes)
- Cable television services
- Digital downloads of books, movies, music
- Telecommunication services, including prepaid telephone cards
Energy Star Sales Tax Holiday
From July 12-18, 2008, Energy Star appliances costing $2,000 or less were exempt from state and local sales tax when purchased for personal use. All vendors making sales of qualifying items in Vermont were required to participate. Only Energy Star labeled appliances were eligible for the exemption.
See Vermont Department of Taxes TB-41.
Personal Computers Sales Tax Holiday
In August 2003 and October 2004, personal computers costing $4,000 or less and purchased by individuals for personal use were exempt from state and local sales tax.