The bill H.308 proposes to exempt the sale of all building materials and supplies from sales and use tax for a period of three years, after which the exemption will revert to a limited exemption specifically for manufacturing facilities. The statutory purpose of this exemption is to reduce the cost of construction in Vermont, as indicated by the new language inserted into the law. The bill also clarifies the definition of building materials and supplies, stating that they include all materials consumed or expended in the construction, reconstruction, alteration, remodeling, or repair of any building or structure, while explicitly excluding blueprints from this definition.

Key amendments include the removal of previous language that limited the exemption based on a purchase value threshold and the specific use of materials for manufacturing. The effective dates for the various sections of the bill are staggered, with the initial exemption taking effect on July 1, 2025, and the reversion to the previous exemption occurring on July 1, 2028. This structure aims to provide temporary relief for construction costs while planning for a return to more restrictive tax policies in the future.

Statutes affected:
As Introduced: 32-9706(y), 32-9706, 32-9741