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Vermont Vehicle Bill of Sale

Vermont's Form VT-005 and a 6% Purchase & Use Tax on the greater of price or NADA value.

Introduction

Vermont publishes an official DMV bill-of-sale form: Form VT-005, the 'Bill of Sale and Odometer Disclosure Statement,' which combines the bill of sale and the odometer disclosure on a single form. A bill of sale is required to register and title a used vehicle in Vermont, so it is not just supplementary; the VT-005 is the official template, but the DMV accepts any bill of sale that contains the make, year, VIN, purchase price, mileage, seller signature, and date of sale. Form VT-005 carries only buyer and seller signatures and has no notary block, so a Vermont vehicle bill of sale does not need to be notarized. The odometer disclosure is integrated into the form under federal 49 U.S.C. section 32709 and 49 CFR 580. The detail that sets Vermont apart is the tax: the 6% Purchase & Use Tax is assessed on the GREATER of the stated purchase price OR the J.D. Power (formerly NADA) clean trade-in value, so a low price written on the bill of sale does not lower the tax base when book value is higher. You title and register at the Vermont DMV in Montpelier, where the tax is due. DocDraft drafts a Vermont vehicle bill of sale from your facts, with attorney review available.

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Key Things to Know

  1. 1

    Vermont has an official DMV form: Form VT-005. The Vermont DMV publishes Form VT-005, the 'Bill of Sale and Odometer Disclosure Statement,' which puts the bill of sale and the odometer disclosure on one form. It is the official state template used to transfer ownership of a motor vehicle and state current mileage. Any bill of sale with the required fields is also accepted.

  2. 2

    Notarization is not required. Form VT-005 requires only buyer and seller signatures and contains no notary or notarization block. Vermont does not require the vehicle bill of sale or the title transfer to be notarized, so a Vermont vehicle bill of sale does not need to be notarized.

  3. 3

    Odometer disclosure is built into the form. The odometer disclosure is integrated into Form VT-005 under federal 49 U.S.C. section 32709 and 49 CFR 580. The DMV form references vehicles model year 2011 or newer, self-propelled, with a registered weight of 16,000 lbs. or less; because the 2021 federal rule extended disclosure to vehicles up to 20 model years old, complete the odometer statement whenever the vehicle is within either the model year 2011 or newer guidance or the federal 20-year window, and check the Vermont DMV for the current threshold.

  4. 4

    Purchase & Use Tax is 6% on the GREATER of price or NADA value. The Purchase & Use Tax is due at registration and/or title at 6% of the purchase price or the J.D. Power clean trade-in value, whichever is greater. Writing a low price on the bill of sale does not lower the tax when the J.D. Power clean trade-in book value is higher, so there is no price-only loophole.

  5. 5

    Title and register at the Vermont DMV in Montpelier. You title and register the vehicle at the Vermont DMV (120 State Street, Montpelier, VT 05603-0001), where the Purchase & Use Tax is collected. A bill of sale is required for the Purchase & Use Tax calculation when you register and title the vehicle.

  6. 6

    A bill of sale is required, and must carry specific fields. A bill of sale is required to register and title a used vehicle in Vermont. Per the VD-119i instructions, it must contain enough information to identify the vehicle, including the Make, Year, VIN, Purchase Price, Mileage, Signature of Seller, and Date of Sale. Form VT-005 captures all of these fields.

  7. 7

    The NADA floor changes what a low price means. In states that tax the stated price, lowering the bill-of-sale price lowers the tax. Vermont is different: because the 6% Purchase & Use Tax is assessed on the greater of the stated price or the J.D. Power clean trade-in value (32 V.S.A. chapter 219), an unusually low price does not cut the tax when book value is higher. Record the true price.

Key decisions before you file

Before you file a Bill of Sale in Vermont, a few decisions shape the document: which option to choose and what each one means. The Bill of Sale guide walks through them.

Open the Bill of Sale guide

Customize your Bill of Sale Template with DocDraft

BILL OF SALE AND ODOMETER DISCLOSURE STATEMENT (Form VT-005)

Note: Form VT-005 is the Vermont DMV's official Bill of Sale and Odometer Disclosure Statement. A bill of sale is required to register and title a used vehicle in Vermont and is used to calculate the 6% Purchase & Use Tax. That tax is assessed on the GREATER of the purchase price below or the vehicle's J.D. Power (formerly NADA) clean trade-in value, so record the true price. The DMV accepts any bill of sale that carries the Make, Year, VIN, Purchase Price, Mileage, Signature of Seller, and Date of Sale.

Date of sale: ____________________

SELLER Name: ____________________________ Address: _________________________ City, State, ZIP: _________________

BUYER Name: ____________________________ Address: _________________________ City, State, ZIP: _________________

DESCRIPTION OF MOTOR VEHICLE Year: ______ Make: ____________ Model: ____________ Body type: ____________ Color: ____________ Vehicle Identification Number (VIN): ________________________

SALE PRICE Purchase price: $____________ Note: Vermont's 6% Purchase & Use Tax is computed on the GREATER of this price or the vehicle's J.D. Power clean trade-in value. Trade-in (if any): ____________________

ODOMETER DISCLOSURE STATEMENT Federal and State laws require that the seller disclose the mileage to the buyer in connection with the transfer of ownership. An inaccurate statement, or failure to complete the statement, may result in fines and/or imprisonment, pursuant to 49 U.S.C. section 32709 and Vermont's Consumer Fraud Law. Odometer reading: ____________ miles (no tenths). I certify, to the best of my knowledge, that the odometer reading reflects the ACTUAL MILEAGE, unless one of the following is checked: [ ] The mileage stated is in EXCESS of its mechanical limits. [ ] The odometer reading is NOT the actual mileage. WARNING: ODOMETER DISCREPANCY. (Odometer disclosure applies to vehicles model year 2011 or newer per the DMV form, and to vehicles within the federal 20-model-year window; check the Vermont DMV for the current threshold.)

AS-IS Unless stated otherwise in writing, the vehicle is sold AS-IS, with no warranties express or implied, and the buyer accepts the vehicle in its present condition.

SIGNATURES Signatures from both the buyer and seller are required.

Seller signature: __________________ Date: __________ Seller printed name: ______________________

Buyer signature: __________________ Date: __________ Buyer printed name: ______________________

(A Vermont vehicle bill of sale does not require notarization; Form VT-005 carries only buyer and seller signatures.)

Vermont Requirements for Bill of Sale

Use Form VT-005, the official Vermont DMV bill of sale

The Vermont DMV publishes Form VT-005, the 'Bill of Sale and Odometer Disclosure Statement,' which combines the bill of sale and the odometer disclosure on one form. It is used to transfer ownership of a motor vehicle and state current mileage. The DMV also accepts any bill of sale that carries the required fields.

Notarization is not required

Form VT-005 requires only buyer and seller signatures and contains no notary or notarization block. Vermont does not require the vehicle bill of sale or the title transfer to be notarized, so it does not need to be notarized.

Vehicle description (make, year, VIN)

Identify the vehicle by make, year, and VIN so the bill of sale matches the title and the registration application. Per the VD-119i instructions, the bill of sale must contain the Make, Year, and VIN, among other fields. Form VT-005 provides a vehicle description block for these.

Odometer disclosure on Form VT-005

The odometer disclosure is integrated into Form VT-005 under federal 49 U.S.C. section 32709 and 49 CFR 580. The DMV form references vehicles model year 2011 or newer, self-propelled, registered weight 16,000 lbs. or less; because the 2021 federal rule extended disclosure to vehicles up to 20 model years old, complete the odometer statement whenever the vehicle is within the model year 2011 or newer guidance or the federal 20-year window. Check the Vermont DMV for the current threshold.

Purchase price and date of sale

Record the actual purchase price and the date of sale. State the true price: Vermont's 6% Purchase & Use Tax is assessed on the greater of the stated price or the J.D. Power clean trade-in value, so understating the price does not lower the tax when book value is higher. The VD-119i instructions require Purchase Price and Date of Sale.

Purchase & Use Tax is 6% on the greater of price or J.D. Power value

The Purchase & Use Tax is due at registration and/or title at 6% of the purchase price or the J.D. Power (formerly NADA) clean trade-in value, whichever is greater. A low stated price does not lower the tax when book value is higher. The rate and clean-trade-in valuation are set under 32 V.S.A. chapter 219 (sections 8903 and 8907).

Title and register at the Vermont DMV in Montpelier

You title and register the vehicle at the Vermont DMV (120 State Street, Montpelier, VT 05603-0001), where the Purchase & Use Tax is collected. A bill of sale is required for the tax calculation when you register and title a used vehicle.

Signatures of both buyer and seller

Form VT-005 requires signatures from both the buyer and the seller, along with the seller's signature and the date of sale per the VD-119i instructions. Both parties should sign, date, and each keep a copy. Notarization is not required.

Frequently Asked Questions

Yes. A bill of sale is required to register and title a used vehicle in Vermont, and it is used to calculate the Purchase & Use Tax. Vermont publishes Form VT-005 as the official template, but any bill of sale is accepted if it contains the make, year, VIN, purchase price, mileage, seller signature, and date of sale. Both buyer and seller should sign and keep a copy.

No. Vermont does not require the vehicle bill of sale or the title transfer to be notarized. Form VT-005 requires only buyer and seller signatures and contains no notary block. Both parties should still sign and date the document and each keep a copy for their records.

Yes. The Vermont DMV publishes Form VT-005, the 'Bill of Sale and Odometer Disclosure Statement,' which combines the bill of sale and the odometer disclosure on a single form. It is used to transfer ownership of a motor vehicle and state current mileage. The DMV also accepts any bill of sale that carries the make, year, VIN, purchase price, mileage, seller signature, and date of sale.

Vermont charges a 6% Purchase & Use Tax, due at the time of registration and/or title. It is assessed on the purchase price or the J.D. Power (formerly NADA) clean trade-in value, whichever is greater, so a low price written on the bill of sale does not lower the tax when book value is higher. The tax is set under 32 V.S.A. chapter 219.

You title and register the vehicle at the Vermont DMV (120 State Street, Montpelier, VT 05603-0001), where the Purchase & Use Tax is collected. Bring a bill of sale, since it is required to identify the vehicle and calculate the tax. Form VT-005 also serves as the odometer disclosure required for the transfer.

Use Form VT-005, which records the seller and buyer, the vehicle description (make, year, VIN), the odometer reading, the purchase price, the date of sale, and the signatures of both buyer and seller. The VD-119i instructions require the make, year, VIN, purchase price, mileage, seller signature, and date of sale. Record the true price, since Vermont taxes on the greater of the price or the J.D. Power clean trade-in value.