MONTPELIER — Vermonters are getting an extra reminder on their tax forms to report out-of-state and online purchases this year.
For four decades the form has included a line for taxpayers to enter what they owe on qualified purchases made outside of Vermont, mostly online. A new second line will read “Check here to certify that no Use Tax is due.”
That extra line will serve to underscore the fact that the tax, which is the equivalent of a sales tax, is due on online and out-of-state purchases, said Tax Commissioner Mary Peterson.
The goal is to increase the number of people reporting this type of spending, especially since sales taxes are not levied on New Hampshire and online purchases.
“We do rely on people’s good faith,” Peterson said of reporting these types of purchases.
Vermont has one of the nation’s highest compliance rates among states that levy a use tax, according to state officials. Peterson estimates compliance at around 10 percent. Vermonters report on average between $30 and $50 spent on out-of-state or online purchases, Peterson said.
She said the state loses an estimated $40 million each year in unpaid use taxes.MORE IN Vermont NewsWOODSTOCK — Back in 1925, Franklin S. Billings Jr. Full StoryCHARLOTTE — Thousands of water birds that normally spread out across Lake Champlain are seeking... Full StoryCHARLOTTE — Thousands of water birds that normally spread out across Lake Champlain are seeking... Full Story
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