Bill > H1116

This bill modifies Massachusetts General Laws to provide tax relief for individuals who have had their vehicle stolen and are purchasing a replacement vehicle. Specifically, the bill allows an insurance payment received for a stolen and unrecovered vehicle to be treated as a trade-in credit when purchasing a new vehicle. To qualify, the stolen vehicle must be reported to law enforcement and remain unrecovered at the time of the replacement vehicle purchase. The insured person must provide documentation from their insurance company showing the amount of the insurance payment and confirming the vehicle was stolen. When calculating the sales tax for the replacement vehicle, the taxable sales price will be the total price of the new vehicle minus the insurance payment (including any excise tax), with the understanding that the resulting price cannot be less than zero. This provision helps reduce the financial burden on vehicle owners who have been victims of vehicle theft by effectively lowering the sales tax on their replacement vehicle.

Business and Industry

https://malegislature.gov/Bills/194/H1116