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Vermont Bill S.123 introduces various amendments to Vermont’s motor vehicle laws, addressing vehicle registration, licensing, fees, electric vehicle infrastructure, and driver regulations. Here are some key provisions:


Plug-in Electric Vehicles (PEVs)

Clarifies that PEVs are included under the definition of "pleasure cars."


Veterans' Designation

Adds a "veteran" designation on driver’s licenses and ID cards for qualifying individuals. Veterans and individuals with disabilities receive certain fee waivers for registrations and licenses.


Veterans' Designation

Adds a "veteran" designation on driver’s licenses and ID cards for qualifying individuals. Veterans and individuals with disabilities receive certain fee waivers for registrations and licenses.


Learner’s Permits & Licensing

Adjusts regulations for motorcycle learner’s permits, allowing fee waivers for former foster youth. Updates CDL (Commercial Driver’s License) and instructor qualifications.


Electric Vehicle Infrastructure Fees

Exempts state- and municipal-owned electric vehicles from EV infrastructure fees.


Motor Vehicle Taxes & Refunds

Amends tax definitions and refund policies, including for trade-ins and insurance claims.


Traffic Offenses & Safety Regulations

Adds excessive speeding violations over 30 mph to an 8-point penalty category. Updates odometer fraud penalties. Strengthens DUI laws, expanding administrative penalties.


Tinted Windows

Limits vehicle window tinting to 70% visible light transmission. Mandates public education on tinting laws before implementation in 2026.


ATV Regulation

Expands ATV width limit to 72 inches.


Used Vehicle Tax & Inspection Study Committee

Establishes a committee to review used car taxation and inspection requirements, reporting by January 2026.


Effective Dates:

Most provisions take effect July 1, 2025, except for window tinting changes, which take effect July 1, 2026.


How much does it cost?

S.123 has an estimated annual revenue loss of $353,000 to the Transportation Fund.


Key Fiscal Impacts:

Exempts individuals under 23 who were in state custody from fees for licenses, ID cards, and learner’s permits.


EV Infrastructure Fee Exemption (-$29,000/year)

Exempts state-, municipal-, and volunteer-owned emergency vehicles from this fee.


Veterans’ Exemption (Minimal Impact)

Expands fee exemptions for veterans, but the financial impact is considered negligible.


SSI/SSDI Fee Reductions (-$309,000/year)

Reduces fees for driver’s licenses and privilege cards for SSI and SSDI recipients.


Used Vehicle Tax & Inspection Study (Minimal Cost)

Establishes a study committee with a minor cost for compensation and administrative support.