The new federal rebate program formally known as the "Car Allowance Rebate System" (CARS) or more popularly known as "Cash for Clunkers" offers qualified consumers a federal government rebate of either $3,500 or $4,500 on the purchase of a new car as long as the buyer is trading in a used vehicle with a combined fuel economy of 18 miles per gallon or less.
The Department of Revenue, in Directive 09-5 , has ruled that "provided that the transaction otherwise qualifies, the payment for the vehicle traded-in may be excluded from the sales tax price subject to tax."
The rebate, which the federal government pays to the dealer, becomes in effect the value of the trade-in, which, in turn lowers the purchase price, which, in turn, lowers the amount of sales tax paid for the new vehicle.
Class in Session at DOR University posted on Jan 20
Looking to educate yourself this tax season? Want to learn more about tax options, or DOR-related issues? All this can be achieved at DOR University, the Department of Revenue’s free online e-learning module. DOR University, created to offer free tax education to the public and …Continue Reading Class in Session at DOR University
Multi-agency investigation in two states leads to charges posted on Nov 19
Earlier this year, the Massachusetts Illegal Tobacco Commission, chaired by DOR Commissioner Amy Pitter, released a report on the illicit tobacco trade which recommends that teaming up with federal, state and local law enforcement can be a successful model for combatting such criminal activity. And …Continue Reading Multi-agency investigation in two states leads to charges
Top priority: protecting the taxpayer and the Commonwealth’s revenue posted on Oct 8
With identity theft on the rise, the Massachusetts Department of Revenue is taking new steps to combat the problem and protect taxpayers. In some cases, this means asking taxpayers to take a quiz before getting their state refund check. DOR is teaming up with LexisNexis …Continue Reading Top priority: protecting the taxpayer and the Commonwealth’s revenue