Vermont Closes Loophole Allowing Out-of-State Registrations

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Vermont Closes Loophole Allowing Out-of-State Registrations
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Vermont closes loophole allowing out-of-state registrations.

For many years, Vermont's distinct green license plate has been a common sight far beyond the borders of the New England state. Not necessarily because hordes of Vermonters are commonly traversing the country, but because the state's DMV allowed anyone in America to register a car there, even if they didn't live in the state. You didn't even need to go to Vermont to make it happen., the Vermont DMV closed this loophole on July 1st.

Vermont became an appealing place to register a car because it was cheap and easy. If you paid the $76 registration fee and the state's 6-percent sales tax on either the purchase price or NADA trade-in value of your car , you were golden. There were other reasons. For vehicles over 15 years old, Vermont didn't require a title, just a bill-of-sale, making it a good option for road-registering project cars, barn finds, and the like. Vermont has annual safety inspections, and any car registered to the state is required to pass inspection. But if you registered a car and never drove in Vermont, you didn't really need to get an inspection.

For years, there seemed to be some sort of peace between Vermont and those out-of-state car owners who took advantage of its DMV. After all, it must have been a pretty decent revenue source for the state. But recently, more and more people started to take advantage of the Vermont DMV's lax policies for more nefarious purposes.

What was once an open secret among car enthusiasts got out, and it created way too many headaches for the state of Vermont. It's understandable why the state wanted this gaping loophole closed. On balance, it's probably a good thing. We don't need more stolen cars and reckless activity on the roads.A car enthusiast since childhood, Chris Perkins is Road & Track's engineering nerd and Porsche apologist.

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