32 V.S.A. § 9774 — Rules for computing compensating use tax

(a) Tangible personal property that has been purchased by a resident of the State outside
this State for use outside this State, and subsequently becomes subject to the compensating
use tax imposed under this chapter, shall be taxed on the basis of the purchase price
of the property, provided however:
(1) that where a taxpayer affirmatively shows that the property was used outside the State
by him or her for more than six months prior to its use within this State, the property
shall be taxed on the basis of current market value of the property at the time of
its first use within this State, but the value of the property, for compensating use
tax purposes, may not exceed its cost; and
(2) that the compensating use tax on the tangible personal property brought into this
State, other than for complete consumption or for incorporation into real property
located in this State, and used in the performance of a contract or subcontract within
this State by a purchaser or user for a period of less than six months may be based,
at the option of the taxpayer, on the fair rental value of the property for the period
of use within this State.
(b) For purposes of subdivision 9773(1) of this title, the tax shall be at the rate under that section, multiplied by the purchase price
given or contracted to be given for the property or for the use of the property adjusted
in the same manner as is the sales price under the sales tax to arrive at the sales
price.
(c) For purposes of subdivision 9773(2) of this title, the tax shall be at the rate under that section, multiplied by the price at which
items of the same kind of tangible personal property are offered for sale by the user.
(d) For purposes of subdivision 9773(3) of this title, the tax shall be at the rate under that section, multiplied by the purchase price
given or contracted to be given for the service, including the consideration for any
tangible personal property transferred in conjunction with the performance of the
service adjusted in the same manner as is the charge for services under the sales
tax to arrive at the sales price. (