Section 26. Where a trade-in of a motor vehicle or trailer is received by a dealer in such vehicles holding a valid vendor's registration, upon the sale of another motor vehicle or trailer to a consumer or user, the tax shall be imposed only on the difference between the sales price of the motor vehicle or trailer purchased and the amount allowed on the motor vehicle or trailer traded in on such purchase. When any such motor vehicle or trailer traded in is subsequently sold to a consumer or user, the tax provided for in this chapter shall apply. For the purposes of this section, the term ''motor vehicle'' shall mean a self-propelled vehicle designed for use and used primarily upon the highway. The term ''motor vehicle'' shall also mean ''snow vehicle'' and ''recreation vehicle'' as defined in section 20 of chapter 90B.
Structure Massachusetts General Laws
Part I - Administration of the Government
Chapter 64h - Tax on Retail Sales of Certain Tangible Personal Property
Section 2 - Sales Tax; Services Tax; Imposition; Rate; Payment
Section 3 - Payment by Purchaser; Collection by Vendor; Sales of Motor Vehicles or Trailers
Section 4 - Computation of Tax
Section 5 - Statement and Collection of Tax
Section 6a - Annual Sales Tax Holiday
Section 7 - Registration Required
Section 8 - Presumption of Sale at Retail; Burden of Proof; Resale and Exempt Use Certificates
Section 9 - Classified Permits Establishing Percentage of Exempt Sales
Section 16 - Liability for Failure to Pay Tax
Section 25a - Motorboats; Aircraft; Certificate Issuance; Evidence of Tax Payment
Section 25b - Unregistered Boats Anchored Within Commonwealth; Reports
Section 26 - Trade-in of Motor Vehicles or Trailers; Sales Tax
Section 27a - Trade-in Boats and Airplanes
Section 29 - Service of Notices
Section 30a - Bond or Deposit; Non-Resident Contractors; Definition
Section 32 - Service of Process; Nonresident Vendors
Section 33 - Worthless Accounts; Reimbursement Without Interest