Free Vermont Gift Bill of Sale
Vermont law sets no fixed title deadline for a gifted vehicle (23 V.S.A. §2023), but the recipient cannot drive it on Vermont roads until it is registered. Some family gifts may be exempt from Vermont's 6% Purchase and Use Tax — about $1,500 on a $25,000 vehicle — so check the DMV's list of allowable exemptions. 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.
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Vermont Gift Bill of Sale — What You Need to Know
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
- Obtain Form VD-119 (Registration, Tax & Title Application) from the Vermont DMV
- Complete VD-119, writing 'Gift' in the purchase price field and noting the family relationship
- Donor signs the back of the existing title, assigning it to the recipient
- Recipient gathers VD-119, the signed title, proof of insurance, and valid ID
- Visit a Vermont DMV office or mail the application before the recipient drives the vehicle
- Pay applicable title and registration fees (Purchase and Use Tax waived for qualifying family gifts)
- Schedule a Vermont safety inspection — the vehicle needs a current inspection sticker to remain registered
- Confirm the vehicle meets Vermont Clean Car standards if it is an older or out-of-state model
Common Pitfalls
- Driving the gifted vehicle before it is registered in the recipient's name
- 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
- Assuming any relative qualifies — confirm the transfer is on the DMV's exemption list before counting on skipping the 6% tax
Pro Tip
Registration before driving is the critical detail — don't wait on paperwork, and schedule the safety inspection early to avoid driving an unregistered vehicle after the transfer.