Chapter 10-9 Exemption From MA Use Tax Paid Under Law of Another State * Virginia - Most tangible personal property is taxed at 3.5%, but motor vehicles are assessed at 3%; the credit for any sales tax paid to Virginia cannot reduce the Massachusetts use tax liability below $35 per vehicle. C. The following jurisdictions have a credit similar to that provided in G.L. c 641, ยง 7(c ) for all corresponding state and local taxes lawfully required by, and actually paid to, other jurisdictions, but the combined tax rate may not always equal, or exceed the Massachusetts 5% rate. The tax rate with the combined state and local tax rates in: * Alabama - Tangible personal property is generally subject to a 4% state sales/ use tax; the state taxes most motorized vehicles at 2%. * Alaska - Alaska has no statewide sales tax, but has more than 100 local jurisdictions applying nine different sales tax rates (from no tax to 7%). Massachusetts will give credit for any sales taxes actually paid these jurisdictions. * Illinois - No use tax will be due Massachusetts on most sales of tangible personal property which are subject to a 6.25% state sales tax. Taxes on casual and isolated sales of used vehicles range from $25 to $1,500. * Louisiana * Missouri * New York * Wyoming 10:103