Sales Tax State Activity Update - August 2004

Vermont Schedules Sales Tax Holiday

Citizens in Vermont not only had the opportunity to enjoy a temporary exemption for computer purchases from August 7-9, 2004, but yet another sales tax holiday has been scheduled from October 9-11, 2004.

The following computer and computer components purchases are exempt during the holidays:

• Computer and bundled computer packages with a selling price of $4,000 or less
• Individual items incorporated in bundled packages that are not $250.01 or 15% of the selling price.
• Individual items incorporated in bundled packages that are not itemized on sales receipt.
• Separately charged monitors, keyboard, pointing devices and software installed by an Original Equipment Manufacturer (OEM) when purchased during the same three day holiday as the CPU, and the total cost is $4,000 or less.

The following items are not covered under the exemption:

• Handheld devices (i.e. Pocket PC, Palm and iPAQ devices)
• Software other than operating systems not installed by an OEM.
• Peripheral devices (printers, scanners, web cams, network switches etc.)

Merchants are not required to verify that the computer and component purchases are for personal use, and no additional documentation is required in most cases. However, verification is required if the purchaser uses a business name, d/b/a or any other circumstance that questions the purchase is for personal use.

More information is available at: http://www.state.vt.us/tax/legal/tb/tb30.htm

(Sales and Uses Tax TB 30, Vermont Department of Taxes, 7/07/04) 08/04

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