Post Content

Cash for clunkers may have ended, but a sales tax issue raised by this program will carry on.

This particular issue involves Massachusetts residents who purchase motor vehicles or boats from out-of-state dealers, which is not all that uncommon.

Please be advised that if you purchase a boat or vehicle from an out-of-state dealer the sales tax calculation will not allow the value of the trade in unless the dealer has already registered as a Massachusetts registered vendor.

If the vendor is not so registered, you will pay sales tax on the purchase price of the vehicle/boat without factoring the value of the trade in.

However, to register as a Massachusetts vendor is painless, and, equally important, free. Have the dealer go here to register. After that is done and you make your purchase, you will pay sales tax on the net sales price due, which reflects the value of the trade in. On a trade of $3,000 that will save you $187.50 in sales tax.

Please keep this in mind so you are not surprised at the Registry of Motor Vehicles or at boat registration when you attempt to register and title your new vehicle.

You may contact Dennis Buckley, Taxpayer Advocate, here, with your questions.

Written By:

Recent Posts

MA Filing Extension to April 18th Announced posted on Apr 15

The Department of Revenue’s WebFile tool, which allows individuals to electronically file state personal income tax returns, has experienced delays due to heavy volume over the past few days. DOR is actively working to resolve this issue, and has extended the deadline for taxpayers to   …Continue Reading MA Filing Extension to April 18th Announced

WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds posted on Mar 13

Here’s another unfortunate addition to the list of financial things to protect yourself from.  DOR has learned that letters of questionable origin are being sent to taxpayers with outstanding tax liens. Although these notices show amounts from actual tax liens, they are not from the Massachusetts   …Continue Reading WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds

Don’t Let a Hacker Steal YOUR Refund posted on Mar 11

There are some rabbit holes you definitely don’t want to fall down during tax season. One such hole, and an increasingly-common nightmarish scenario, is finding out your tax refund has been stolen. In a recent article, Allison Martin of Money Talk News was the bearer   …Continue Reading Don’t Let a Hacker Steal YOUR Refund