Vermont: Licensing basics — Purchase and Use Tax, Titles, VIN and Liens Practice Test
Questions in this part include: “On what is the Purchase and Use Tax on a non-leased vehicle figured?” · “Before 1981, VINs varied in length from how many characters up to 17?”
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Questions are original and based on the official manual "Vermont Driver's Manual" (2025 edition (VN-007 07/2024)), Vermont Department of Motor Vehicles.
All 17 questions in this practice test
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On what is the Purchase and Use Tax on a non-leased vehicle figured?
- The price you paid or the current fair market value, whichever is less
- The price you paid or the current fair market value, whichever is greater
- The weight of the vehicle and its engine size
- The odometer reading when you bought the vehicle
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Correct answer: The price you paid or the current fair market value, whichever is greater
The tax is based on the price paid or the current fair market value, whichever amount is greater.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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A new resident registers a vehicle bought outside Vermont. When is the Vermont Purchase and Use Tax not due, based on tax paid in another jurisdiction?
- When the tax paid there is less than the Vermont tax
- When the tax was paid more than 30 days before moving
- When the vehicle was bought less than a year before moving
- When the tax paid there is equal to or greater than the Vermont tax
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Correct answer: When the tax paid there is equal to or greater than the Vermont tax
A new resident is exempt if the tax already paid elsewhere is at least as much as the Vermont tax, and proof is provided.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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A new resident paid less purchase or use tax in another jurisdiction than the Vermont tax. What tax is due in Vermont?
- The difference
- The full Vermont tax
- Half of the Vermont tax
- No tax at all
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Correct answer: The difference
When the tax paid elsewhere is less than the Vermont tax, the tax due is the difference.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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A new resident is exempt from the Vermont Purchase and Use Tax if the vehicle has been registered for at least how long in a jurisdiction that collects a purchase or use tax?
- 1 year
- 2 years
- 3 years
- 5 years
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Correct answer: 3 years
A vehicle registered for at least 3 years in a jurisdiction that collects the tax qualifies the new resident for the exemption.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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What is the greatest empty weight of a trailer that needs no Vermont motor vehicle title?
- 1,000 pounds
- 2,500 pounds
- 3,500 pounds
- 1,500 pounds
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Correct answer: 1,500 pounds
A trailer with an empty weight of 1,500 pounds or less is an exception to the title requirement.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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A motorcycle with less than what engine displacement needs no Vermont motor vehicle title?
- 100 cc
- 300 cc
- 200 cc
- 500 cc
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Correct answer: 300 cc
A motorcycle with less than 300 cc of engine displacement is an exception to the title requirement.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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Which document is required for all new vehicles, and you cannot register a vehicle without it?
- A salvage title from another state
- A lien holder's written statement
- A Manufacturer's Certificate of Origin
- A signed VIN verification certificate
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Correct answer: A Manufacturer's Certificate of Origin
A Manufacturer's Certificate of Origin is required for every new vehicle, and a vehicle cannot be registered without it.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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Along with the application for registration, what else will you need to register a vehicle in Vermont?
- The bill of sale and the former owner's title signed over to you
- The seller's driving record and a written vehicle appraisal
- A letter from the seller's insurance company and the old plates
- A lien release and a copy of the seller's driver's license
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Correct answer: The bill of sale and the former owner's title signed over to you
Registration needs the application plus the bill of sale and the former owner's title signed over to you.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 66 · Open this page in the manual (Manual page 66)
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How many characters does a Vehicle Identification Number (VIN) have?
- 17
- 13
- 15
- 19
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Correct answer: 17
A VIN has 17 characters made of digits and capital letters, and it identifies one specific vehicle.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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Before 1981, VINs varied in length from how many characters up to 17?
- 5 characters
- 8 characters
- 11 characters
- 13 characters
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Correct answer: 11 characters
VINs before 1981 varied from 11 to 17 characters in length.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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For which of these vehicles is a VIN verification required?
- A new vehicle that has a Manufacturer's Certificate of Origin
- A vehicle with a registration from any foreign country, including Canada
- A vehicle that has a lien holder named on it
- A vehicle with a valid Vermont inspection sticker
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Correct answer: A vehicle with a registration from any foreign country, including Canada
Verification is required for vehicles with salvage documentation, vehicles titled under bond, and vehicles registered in any foreign country, including Canada.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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Who may complete a VIN verification?
- Any licensed vehicle dealer
- An inspection station mechanic
- The bank that holds the lien
- A Vermont law enforcement officer
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Correct answer: A Vermont law enforcement officer
VIN verifications are done by Vermont law enforcement officers, personnel under their direct supervision, or DMV employees designated by the Commissioner.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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Where must VIN verifications be completed?
- In the state where the vehicle was first sold
- At the dealer who sells the vehicle
- In Vermont
- In any state that has a DMV office
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Correct answer: In Vermont
The manual says VIN verifications must be completed in Vermont.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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When you register a vehicle that has a SALVAGE title in Vermont, what words will appear on the title you are issued?
- REBUILT VEHICLE
- RESTORED VEHICLE
- RECONSTRUCTED
- CERTIFIED USED
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Correct answer: REBUILT VEHICLE
A vehicle with a SALVAGE title is issued a Vermont title with the words REBUILT VEHICLE.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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What is the person or bank you borrow money from to buy a vehicle called?
- A title holder
- A registrant
- A bondholder
- A lien holder
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Correct answer: A lien holder
When you borrow money to buy a vehicle, the vehicle has a lien on it and the lender is the lien holder.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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Whose name must be on the registration application when you borrowed money to buy the vehicle?
- The seller's name only
- The lien holder's name
- The dealer's name only
- The inspection station's name
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Correct answer: The lien holder's name
The lien holder's name must be on the registration application.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)
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When a vehicle has a lien on it, where is the title sent when it is issued?
- To you, with the lien noted on it
- To the lien holder, until you pay back the money you borrowed
- To the seller of the vehicle until the first payment
- To the DMV, which keeps it on file for the owner
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Correct answer: To the lien holder, until you pay back the money you borrowed
The title goes to the lien holder and is not given to you until you pay back the money you borrowed.
Source: Vermont Driver's Manual (2025 edition (VN-007 07/2024)), page 67 · Open this page in the manual (Manual page 67)