- Associated Press - Monday, February 10, 2014

MONTPELIER, Vt. (AP) - Vermonters are getting an extra reminder on their tax forms to report out-of-state and online purchases this year.

For four decades the form has included a line for taxpayers to enter what they owe on qualified purchases made outside of Vermont, mostly online. A new second line will read “Check here to certify that no Use Tax is due.”

That extra line will serve to underscore the fact that the tax, which is the equivalent of a sales tax, is due on online and out-of-state-purchases, Tax Commissioner Mary Peterson said.

The goal is to increase the number of people reporting this type of spending, especially since New Hampshire and online purchases are not levied for sale taxes.

“We do rely on people’s good faith,” Peterson said of reporting these types of purchases.

Vermont has one of the nation’s highest compliance rates among states that levy a use tax, according to state officials. Peterson estimates compliance at around 10 percent. Vermonters report on average between $30 and $50 spent on out-of-state or online purchases, Peterson said.

She said the state loses an estimated $40 million each year in unpaid use taxes.

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Information from: WVPS-FM, https://www.vpr.net

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