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Free Vermont Gift Bill of Sale

Vermont's 15-day title transfer deadline is the tightest in New England — act fast after gifting a vehicle to avoid penalties. The good news is that immediate family gifts are fully exempt from Vermont's 6% Purchase and Use Tax, saving $1,500 on a $25,000 vehicle. Use Form VD-119 and note 'Gift' and the family relationship. Vermont also enforces Clean Car (California) emissions standards and requires an annual safety inspection, so factor those into the transition.

Vermont Requirements: Transfer title within 60 days. 6% sales tax.

Seller Information

Buyer Information

Gift Details

Sale Information

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Gifting a vehicle to a family member is a zero-dollar transfer, but the DMV still needs a bill of sale to process the title change. Our guide explains how the bill of sale and title work together and what recipients must show to claim the family-gift tax exemption. Read: Bill of Sale vs Title: What's the Difference?

Vermont Gift Bill of Sale — What You Need to Know

Primary Form
VD-119
Application for Vermont Certificate of Title
Agency
Vermont Department of Motor Vehicles
Primary ID Field
VIN
Sales Tax
0%
Title Required
Yes
Vermont has a strict 15-day title transfer deadline from the date of the gift. Complete Form VD-119, noting 'Gift' and the family relationship. Vermont is one of few states with a 15-day window — do not delay.
Inspection
Required

Inspection Requirements

Vermont requires an annual safety inspection for all registered vehicles. The recipient must obtain a passing inspection sticker before or promptly after registration. Vermont also enforces Clean Car emissions standards (California standards), which affect which vehicles can be registered.

Vermont Gift Sale — Step-by-Step Checklist

  1. Obtain Form VD-119 (Application for Vermont Certificate of Title) from the Vermont DMV
  2. Complete VD-119, writing 'Gift' in the purchase price field and noting the family relationship
  3. Donor signs the back of the existing title, assigning it to the recipient
  4. Recipient gathers VD-119, the signed title, proof of insurance, and valid ID
  5. Visit a Vermont DMV office or mail the application within 15 days of the gift date
  6. Pay applicable title and registration fees (Purchase and Use Tax waived for qualifying family gifts)
  7. Schedule a Vermont safety inspection — the vehicle needs a current inspection sticker to remain registered
  8. Confirm the vehicle meets Vermont Clean Car standards if it is an older or out-of-state model

Common Pitfalls

  • Missing the 15-day title transfer deadline — Vermont's window is much shorter than most states and late fees apply
  • Not writing 'Gift' and the family relationship on VD-119 — the DMV will assess 6% Purchase and Use Tax based on the vehicle's value
  • Forgetting that Vermont requires an annual safety inspection — a vehicle without a current sticker cannot be legally driven
  • Overlooking Vermont's Clean Car (California) emissions standards — certain older vehicles may not qualify for Vermont registration
  • Gifting to a non-qualifying relative — only spouse, parent, child, sibling, grandparent, and grandchild are exempt from the 6% tax

Pro Tip

Vermont's 15-day deadline is the critical detail — don't wait on paperwork, and schedule the safety inspection early to avoid driving an unregistered vehicle after the transfer.

Vermont Gift Bill of Sale — FAQs

Why does Vermont have a 15-day title transfer deadline instead of the more common 30 days?
Vermont statute requires title transfer within 15 days of a sale or gift. This is one of the strictest deadlines in the US, so recipients should visit the DMV promptly after receiving a gifted vehicle.
What is the Vermont Purchase and Use Tax and how much can I save with a gift exemption?
Vermont's Purchase and Use Tax is 6% of the vehicle's value. On a $25,000 vehicle, that's $1,500. Gifts between immediate family members are fully exempt — making proper documentation critical.
What are Vermont's Clean Car standards?
Vermont adopted California's vehicle emissions standards, meaning certain vehicle models that don't meet California emissions specs may face registration issues. Most vehicles built after 2004 are compliant, but check with the Vermont DMV if you're unsure.
Can I mail the title transfer application in Vermont?
Yes, Vermont DMV accepts mailed applications. However, given the 15-day deadline, it's safer to visit a DMV office in person to ensure timely processing.
Which family members qualify for the Vermont gift tax exemption?
Spouse, parent, child, sibling, grandparent, and grandchild qualify. The relationship must be noted on Form VD-119. Extended family members such as cousins and in-laws do not qualify.