Central Vermont Railway, Inc. v. Department of Taxes
Supreme Court of Vermont · 1984-07-20 · cited 8×
The case involved Central Vermont Railway's request for a refund of Vermont sales and use taxes paid on diesel fuel for its locomotives between April 1978 and June 1981, after the Department of Taxes denied the claim. The superior court upheld the denial, but the Vermont Supreme Court reversed, ruling that the fuel was exempt from the taxes during that period. The court interpreted 32 V.S.A. § 9741(7) as exempting sales of motor fuels taxed or exempted under chapter 217, and found that § 8801(a) excluded diesel oil from the definition of motor fuel subject to tax, making it exempt regardless of on-highway or off-highway use. This statutory reading avoided potential constitutional issues with unequal treatment. The case was remanded to calculate the refund amount plus interest and costs.