Registry Procedures Manual - 11.11

Chapter 11. Computation of Tax
5. Computation of the tax.
Effective August 1, 2009, under Massachusetts sales and use tax provisions, the
purchaser, transferee or user having title to or possession of a motor vehicle is directly
responsible for the payment of the 6.25% sales or 6.25% use tax.
A. General rule. The sales and use tax is 6.25% of the sales price, subject to the following
rules.
B. Unrealistic sales prices on motor vehicles and trailers. If a motor vehicle or trailer is sold
at an unrealistic sales price, the tax is computed as follows:
1. Dealer sales. If the sale is by a Massachusetts dealer in the regular course of business,
the sales tax may be computed on the sales price. Upon payment of the tax, the Registrar
may issue a Certificate of Title and Registration, but the exemption is subject to the
Commissioner's review and verification. In such cases, the Registrar must forward to the
Commissioner a copy of the Title and Registration Application (Form RTA) pursuant to the
provisions of 830 CMR 64H.25.1(6)(d).
2. Casual and isolated sales. If a motor vehicle, trailer or other vehicle is sold or transferred
in a casual and isolated sales transaction, the sales price for purposes of computing use
tax is determined as follows:
a. Sales price. The sales price of a motor vehicle, trailer or other vehicle transferred in a
casual and isolated sale is the greater of either 1) the actual amount paid by the
purchaser for the vehicle, or 2) the clean trade-in (as of 04/11) value of the vehicle.
b. High and low mileage vehicles. In the case of a motor vehicle or other vehicle with
high or low mileage that is transferred in a casual and isolated sale, the average tradein
value of such a vehicle must be adjusted upwards or downwards in accordance
with any High and Low Mileage Tables in the applicable used vehicle pricing guide. A
high or low mileage vehicle is identified by the type of vehicle, the year of
manufacture, and the amount of mileage at the time of transfer.
c. Salvage titled vehicles. In the case of a motor vehicle, trailer, or other vehicle titled
by the Registrar as a " salvage vehicle, " the sales price upon which the use tax shall be
computed is the actual amount paid by the purchaser for the vehicle, valued in money
or money's worth, without reference to the average trade-in value of such vehicle. For
purposes of this subsection, a salvage vehicle is any vehicle that is determined by a
motor vehicle insurer to be a total loss due to fire, vandalism, collision, theft, flood or
similar event and that has a " SALVAGE TITLE " stamp on its Form RTA.
A salvage vehicle is identified as one of two types: parts only or repairable. A salvage
vehicle determined to be for parts only can never be retitled or reregistered. A salvage
vehicle determined to be repairable may be rattled and reregistered as a reconstructed or
recovered theft vehicle.

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