Home      About     Contact

An Act Relating to the Taxation of Vehicles Used for Forestry Operations

The bill expands Vermont’s motor vehicle purchase and use tax exemptions for vehicles used in forestry operations (32 V.S.A. § 8911)

The legislation reduces costs for forestry operators by lowering vehicle taxation, potentially supporting the logging and timber industry. Fully Exempt Vehicles include Skidders (with grapple and cable), feller bunchers, cut-to-length processors, forwarders, delimbers, loader slashers, log loaders, whole-tree chippers, stationary screening systems, firewood processors, elevators, and screens. Partially Exempt Vehicles (50% Tax Reduction) include semi-trailers, tractors, truck cranes, truck tractors, trailers, and motor trucks with a manufacturer’s gross vehicle weight (GVW) of 10,000 pounds or more, when used for timber cutting, removal, processing, or transportation. The Department of Motor Vehicles (DMV) may require purchasers to certify that the vehicle qualifies for the exemption at the time of purchase. The DMV must publish guidance on the application of this tax exemption.

 The bill is estimated to reduce motor vehicle purchase and use tax revenue by approximately $500,000 annually. The estimated fiscal impact is based on available data and assumptions regarding the number of vehicles engaged in forestry operations that would qualify for the exemption. If the bill becomes law, the exemption will take effect on July 1, 2025.