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.
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