Committee debates DMV purchase-and-use tax changes that would tax trailer coaches at full 6%

The Senate Transportation committee on Feb. 27 heard fiscal office analysis showing language in a miscellaneous DMV bill would make “trailer coaches” subject to the full 6% motor vehicle purchase-and-use tax rather than the current $2,486 maximum. Logan of the fiscal office told the committee the draft would also raise the gross vehicle weight rating threshold from about 10,099 pounds to 13,500 pounds, expanding the set of trucks that pay the full 6%.

Logan said the GVWR change, based on department data for first‑time Vermont registrations, would likely generate about $1,000,000 in additional revenue if current registration patterns persist. But Logan repeatedly cautioned that DMV could not separate registrations for trailer coaches (including fifth‑wheel and living‑quarters trailers) in the available data, so any revenue estimate for that category is unknown. "I just don't know. I don't have data to say 1 way or another," Logan said.

Committee members pressed for clarity about ‘fifth wheels’ and whether those vehicles were being counted in Logan’s figures; several senators noted they were uncomfortable answering public questions about the bill without firmer numbers. One member said the fiscal estimates were "squishy" because of missing DMV breakdowns and asked staff to draft language to take the purchase-and-use sections out of the current package until the figures could be resolved.

Following discussion, legislative counsel Daniel Miner described a substitute amendment that removes the purchase-and-use sections from their current location in the bill and reorders other provisions. Members signaled support for offering a substitute amendment and agreed to a clean copy to share with the clerk and affected agencies. The committee treated the agreement as a straw poll rather than a formal vote; members also asked staff to notify Secretary Bloomer and other stakeholders.

The committee did not adopt a formal motion or record a roll‑call vote on the amendment during the session. Next steps identified by members included collecting clearer DMV data on trailer‑coach registrations and working with the House/finance committee as appropriate before returning the language to the bill.

The committee paused further consideration of the purchasing/use sections so staff can produce clearer fiscal estimates and revised bill language. The chair left early for a family matter and the vice chair ran the remainder of the session.