Origin: In most cases, motor vehicles and trailers bought from a dealer in a trade-in transaction are subject to tax only on the excess of the purchase price over the amount credited for the trade-in, rather than on the full purchase price.
Origin: M.G.L c. 64H, § 26, c. 64I, § 27
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2022
FY2023
FY2024
FY2025
FY2026
Sales Tax
Miscellaneous Exemptions
3.606
Exemption for Trade-in Allowances for Motor Vehicles and Trailers
In most cases, motor vehicles and trailers bought from a dealer in a trade-in transaction are subject to tax only on the excess of the purchase price over the amount credited for the trade-in, rather than on the full purchase price.
M.G.L <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64h/Section26" target="_blank">c. 64H, § 26</a>, <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64i/Section27" target="_blank">c. 64I, § 27</a>
134.2
134.7
135.1
135.6
136.0
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