BILL AS INTRODUCED H.308
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VT LEG #380249 v.1
H.308 1
Introduced by Representatives Bartley of Fairfax, Charlton of Chester, 2
Krasnow of South Burlington, Parsons of Newbury, Sweeney of 3
Shelburne, and Toof of St. Albans Town 4
Referred to Committee on 5
Date: 6
Subject: Taxation; sales and use tax; sales tax exemptions; building materials 7
and supplies 8
Statement of purpose of bill as introduced: This bill proposes to exempt the 9
sale of all building materials and supplies from sales and use tax. The 10
exemption sunsets after three years and reverts back to a limited exemption for 11
manufacturing facilities. 12
An act relating to exempting sales of building materials and supplies from 13
sales and use tax 14
It is hereby enacted by the General Assembly of the State of Vermont: 15
Sec. 1. 32 V.S.A. § 9706(y) is amended to read: 16
(y) The statutory purpose of the exemption for sales of building materials 17
and supplies in subdivision 9741(39) of this title is to provide incentives to 18
restore and revitalize downtown districts reduce the cost of construction in 19
Vermont. 20 BILL AS INTRODUCED H.308
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VT LEG #380249 v.1
Sec. 2. 32 V.S.A. § 9741 is amended to read: 1
§ 9741. SALES NOT COVERED 2
Retail sales and use of the following shall be exempt from the tax on retail 3
sales imposed under section 9771 of this title and the use tax imposed under 4
section 9773 of this title: 5
* * * 6
(39) Sales of building materials within any three consecutive years in 7
excess of $1,000,000.00 in purchase value used in the construction, renovation, 8
or expansion of facilities that are used exclusively, except for isolated or 9
occasional uses, for the manufacture of tangible personal property for sale and 10
supplies. As used in this subdivision, “building materials and supplies” 11
include all materials and supplies consumed, employed, or expended in the 12
construction, reconstruction, alteration, remodeling, or repair of any building 13
or structure, as well as the materials and supplies physically incorporated 14
therein. Blueprints are not considered supplies for purposes of the exemption 15
under this subdivision. 16
* * * 17
Sec. 3. 32 V.S.A. § 9706(y) is amended to read: 18
(y) The statutory purpose of the exemption for sales of building materials 19
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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VT LEG #380249 v.1
construction in Vermont provide incentives to restore and revitalize downtown 1
districts. 2
Sec. 4. 32 V.S.A. § 9741 is amended to read: 3
§ 9741. SALES NOT COVERED 4
Retail sales and use of the following shall be exempt from the tax on retail 5
sales imposed under section 9771 of this title and the use tax imposed under 6
section 9773 of this title: 7
* * * 8
(39) Sales of building materials and supplies. As used in this 9
subdivision, “building materials and supplies” include all materials and 10
supplies consumed, employed, or expended in the construction, reconstruction, 11
alteration, remodeling, or repair of any building or structure, as well as the 12
materials and supplies physically incorporated therein. Blueprints are not 13
considered supplies for purposes of the exemption under this subdivision 14
within any three consecutive years in excess of $1,000,000.00 in purchase 15
value used in the construction, renovation, or expansion of facilities that are 16
used exclusively, except for isolated or occasional uses, for the manufacture of 17
tangible personal property for sale. 18
* * * 19 BILL AS INTRODUCED H.308
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VT LEG #380249 v.1
Sec. 5. EFFECTIVE DATES 1
(a) This section and Secs. 1 (statutory purpose) and 2 (building materials 2
and supplies exemption) shall take effect on July 1, 2025. 3
(b) Secs. 3 (statutory purpose) and 4 (reversion to previous exemption) 4
shall take effect on July 1, 2028. 5