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.
VIDEO: Introducing MassTaxConnect! posted on Aug 24
Take a look at our newest video introducing you to MassTaxConnect, our new, modernized online tax system. Hear from Commissioner Mark Nunnelly and several DOR employees about what to expect come November 30th when we launch MassTaxConnect for business taxpayers, practitioners, and professionals. Get an …Continue Reading VIDEO: Introducing MassTaxConnect!
What’s New with MassTaxConnect? posted on Aug 13
MassTaxConnect for Massachusetts Business Taxpayers Available November 30, 2015! Things are about to get easier and faster for Massachusetts business taxpayers. MassTaxConnect will replace WebFile for Business later this year and will feature the best of what WFB offers plus state-of-the-art enhancements to make tax …Continue Reading What’s New with MassTaxConnect?
F.A.Q. Everything you Need to Know about the Sales Tax Holiday posted on Aug 10
Last week the state legislature passed and Governor Charlie Baker signed into law the Sales Tax Holiday that will officially suspend the state’s 6.25% sales tax for the upcoming weekend of August 15th and 16th. State policymakers have passed an annual summer’s sales tax holiday …Continue Reading F.A.Q. Everything you Need to Know about the Sales Tax Holiday