Vermont Vehicle Registration for Out-of-State Owners

Vehicle registration is a mandatory process for you if you’re a vehicle owner, ensuring that your vehicle is legally recognized by the state. In Vermont, this requirement extends to residents and, in very specific cases, to those who live out of state.

For years, Vermont was known for its lax regulations that allowed non-residents to register vehicles with ease (the “Vermont Loophole”). As of recent updates, this loophole is now closed.

The Vermont Department of Motor Vehicles (DMV) has tightened its procedures. The state now requires specific documentation to process the registration of vehicles owned by individuals without a primary Vermont address. This guide will explain who is still eligible and the correct process to follow.

The New Rule: Who Can Actually Register a Car in Vermont?

The new rule is simple: You must be a Vermont resident to register a car.

Your vehicle’s “garaging” address must be your primary Vermont residence. If you are a non-resident, your application will be rejected unless you fall into one of these specific exception categories.

The 4 Exceptions for Out-of-State Residents

If you are not a full-time Vermont resident, you can only register a car in the state if you meet one of these four criteria:

1. You Own Property in Vermont: You are a part-time resident or “second home” owner. You must provide proof of ownership, like a Vermont utility bill or property tax bill in your name.
2. You are an Out-of-State Student: You are enrolled in a Vermont college, university, or private school. You must provide a letter from the school’s registrar confirming your enrollment.
3. You are Active-Duty Military: You are a member of the armed forces stationed in Vermont but maintain your permanent residency in another state. You must provide your military orders.
4. You Have a DMV Commissioner’s Exception: This is a rare, case-by-case exception for business or other specific needs, which must be approved by the Commissioner of Motor Vehicles.

If you do not fit into one of these four categories, you cannot register a vehicle in Vermont.

How to Register Your Out-of-State Vehicle (The 4-Step Process)

If you meet one of the exceptions above, here is the correct process to register your vehicle.

Step 1: Get a VIN Verification (Mandatory)

Before you do anything else, you must have your vehicle’s Vehicle Identification Number (VIN) verified. This is required for all out-of-state vehicles.

• Form: You must use the Verification of VIN (Form VT-010).
• Who: This form must be completed by a Vermont law enforcement officer, a Vermont-licensed auto dealer, or a DMV employee at your appointment.

Step 2: Book Your In-Person Appointment

This is a complex transaction that must be done in person. You must schedule an appointment with the Vermont DMV for “Vehicle Registration.”

Step 3: Gather Your Required Documents

Prepare the following packet to bring to your appointment:

1. Completed Application: The Registration, Tax & Title Application (Form VD-119).
2. Original Out-of-State Title: The original Certificate of Title from your previous state. (If you have a loan, you must provide the full name and address of your lienholder).
3. VIN Verification Form: The completed and signed Form VT-010 (from Step 1).
4. Proof of Your Exception: This is the most important part. You must bring:
   • Property Owners: A current VT utility bill or property tax bill.
   • Students: A letter from your school’s registrar.
   • Military: Your official stationing orders.
5. Proof of Insurance: A valid, current Vermont insurance card.
6. Payment: Be prepared to pay all fees.

Step 4: Pay Your Taxes and Fees

At your appointment, you will pay:

• Registration Fees: These vary by the type and weight of your vehicle.
• Title Fee: A one-time fee to create the new Vermont title.
• Sales Tax (6%): You must pay a 6% tax on the vehicle’s NADA book value or the purchase price (whichever is greater), minus any sales tax you already paid to another state. You must bring proof (like a Bill of Sale) of tax paid.

Vehicle Inspection (After Registration)

Upon successful registration, you will be issued your new Vermont license plates and a temporary registration.

You must then get your vehicle inspected at a certified Vermont Inspection Station within 15 days of the registration date.

FAQs