| 1 | 1 | | BILL AS INTRODUCED H.308 |
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| 2 | 2 | | 2025 Page 1 of 4 |
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| 4 | 4 | | |
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| 5 | 5 | | VT LEG #380249 v.1 |
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| 6 | 6 | | H.308 1 |
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| 7 | 7 | | Introduced by Representatives Bartley of Fairfax, Charlton of Chester, 2 |
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| 8 | 8 | | Krasnow of South Burlington, Parsons of Newbury, Sweeney of 3 |
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| 9 | 9 | | Shelburne, and Toof of St. Albans Town 4 |
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| 10 | 10 | | Referred to Committee on 5 |
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| 11 | 11 | | Date: 6 |
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| 12 | 12 | | Subject: Taxation; sales and use tax; sales tax exemptions; building materials 7 |
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| 13 | 13 | | and supplies 8 |
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| 14 | 14 | | Statement of purpose of bill as introduced: This bill proposes to exempt the 9 |
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| 15 | 15 | | sale of all building materials and supplies from sales and use tax. The 10 |
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| 16 | 16 | | exemption sunsets after three years and reverts back to a limited exemption for 11 |
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| 17 | 17 | | manufacturing facilities. 12 |
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| 18 | 18 | | An act relating to exempting sales of building materials and supplies from 13 |
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| 19 | 19 | | sales and use tax 14 |
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| 20 | 20 | | It is hereby enacted by the General Assembly of the State of Vermont: 15 |
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| 21 | 21 | | Sec. 1. 32 V.S.A. § 9706(y) is amended to read: 16 |
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| 22 | 22 | | (y) The statutory purpose of the exemption for sales of building materials 17 |
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| 23 | 23 | | and supplies in subdivision 9741(39) of this title is to provide incentives to 18 |
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| 24 | 24 | | restore and revitalize downtown districts reduce the cost of construction in 19 |
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| 25 | 25 | | Vermont. 20 BILL AS INTRODUCED H.308 |
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| 26 | 26 | | 2025 Page 2 of 4 |
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| 28 | 28 | | |
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| 29 | 29 | | VT LEG #380249 v.1 |
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| 30 | 30 | | Sec. 2. 32 V.S.A. § 9741 is amended to read: 1 |
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| 31 | 31 | | § 9741. SALES NOT COVERED 2 |
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| 32 | 32 | | Retail sales and use of the following shall be exempt from the tax on retail 3 |
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| 33 | 33 | | sales imposed under section 9771 of this title and the use tax imposed under 4 |
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| 34 | 34 | | section 9773 of this title: 5 |
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| 35 | 35 | | * * * 6 |
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| 36 | 36 | | (39) Sales of building materials within any three consecutive years in 7 |
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| 37 | 37 | | excess of $1,000,000.00 in purchase value used in the construction, renovation, 8 |
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| 38 | 38 | | or expansion of facilities that are used exclusively, except for isolated or 9 |
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| 39 | 39 | | occasional uses, for the manufacture of tangible personal property for sale and 10 |
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| 40 | 40 | | supplies. As used in this subdivision, “building materials and supplies” 11 |
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| 41 | 41 | | include all materials and supplies consumed, employed, or expended in the 12 |
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| 42 | 42 | | construction, reconstruction, alteration, remodeling, or repair of any building 13 |
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| 43 | 43 | | or structure, as well as the materials and supplies physically incorporated 14 |
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| 44 | 44 | | therein. Blueprints are not considered supplies for purposes of the exemption 15 |
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| 45 | 45 | | under this subdivision. 16 |
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| 46 | 46 | | * * * 17 |
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| 47 | 47 | | Sec. 3. 32 V.S.A. § 9706(y) is amended to read: 18 |
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| 48 | 48 | | (y) The statutory purpose of the exemption for sales of building materials 19 |
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| 49 | 49 | | and supplies in subdivision 9741(39) of this title is to reduce the cost of 20 BILL AS INTRODUCED H.308 |
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| 50 | 50 | | 2025 Page 3 of 4 |
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| 51 | 51 | | |
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| 52 | 52 | | |
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| 53 | 53 | | VT LEG #380249 v.1 |
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| 54 | 54 | | construction in Vermont provide incentives to restore and revitalize downtown 1 |
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| 55 | 55 | | districts. 2 |
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| 56 | 56 | | Sec. 4. 32 V.S.A. § 9741 is amended to read: 3 |
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| 57 | 57 | | § 9741. SALES NOT COVERED 4 |
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| 58 | 58 | | Retail sales and use of the following shall be exempt from the tax on retail 5 |
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| 59 | 59 | | sales imposed under section 9771 of this title and the use tax imposed under 6 |
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| 60 | 60 | | section 9773 of this title: 7 |
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| 61 | 61 | | * * * 8 |
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| 62 | 62 | | (39) Sales of building materials and supplies. As used in this 9 |
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| 63 | 63 | | subdivision, “building materials and supplies” include all materials and 10 |
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| 64 | 64 | | supplies consumed, employed, or expended in the construction, reconstruction, 11 |
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| 65 | 65 | | alteration, remodeling, or repair of any building or structure, as well as the 12 |
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| 66 | 66 | | materials and supplies physically incorporated therein. Blueprints are not 13 |
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| 67 | 67 | | considered supplies for purposes of the exemption under this subdivision 14 |
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| 68 | 68 | | within any three consecutive years in excess of $1,000,000.00 in purchase 15 |
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| 69 | 69 | | value used in the construction, renovation, or expansion of facilities that are 16 |
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| 70 | 70 | | used exclusively, except for isolated or occasional uses, for the manufacture of 17 |
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| 71 | 71 | | tangible personal property for sale. 18 |
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| 72 | 72 | | * * * 19 BILL AS INTRODUCED H.308 |
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| 73 | 73 | | 2025 Page 4 of 4 |
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| 75 | 75 | | |
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| 76 | 76 | | VT LEG #380249 v.1 |
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| 77 | 77 | | Sec. 5. EFFECTIVE DATES 1 |
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| 78 | 78 | | (a) This section and Secs. 1 (statutory purpose) and 2 (building materials 2 |
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| 79 | 79 | | and supplies exemption) shall take effect on July 1, 2025. 3 |
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| 80 | 80 | | (b) Secs. 3 (statutory purpose) and 4 (reversion to previous exemption) 4 |
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| 81 | 81 | | shall take effect on July 1, 2028. 5 |
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