Section 27. 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 a ''snow vehicle'' and a ''recreation vehicle'' as defined in section 20 of chapter 90B.
Structure Massachusetts General Laws
Part I - Administration of the Government
Chapter 64i - Tax on the Storage, Use or Other Consumption of Certain Tangible Personal Property
Section 2 - Imposition; Rate; Payment
Section 4 - Collection of Tax; Status of Tax; Sales of Motor Vehicles
Section 4a - Payment and Accounting Methods for Use Tax Liability; Estimated Liability Table
Section 5 - Computation of Tax
Section 6 - Statement and Collection of Tax
Section 9 - Registration Required
Section 11 - Classified Permits Establishing Percentage of Exempt Sales
Section 17 - Liability for Failure to Pay Tax
Section 24 - Advertisement That Vendor Will Assume or Absorb Tax
Section 26a - Motorboats; Aircraft; Certificate Issuance; Evidence of Tax Payment
Section 27 - Trade-in of Motor Vehicles or Trailers; Use Tax
Section 31a - Bond or Deposit; Non-Resident Contractors; Definition