Chapter 11. Tax Exemptions Sales Tax Quick Reference Manual on Heavy Equipment Definition The sale of a new or used piece of equipment from a dealer, that is required to be registered/ titled as a motor vehicle or trailer, may be exempt from the sales/use tax if the dealer collected the tax. NOTES: * A bull-dozer or back-hoe are examples of equipment. * If the equipment dealer did not collect the tax, the tax must be collected. * No trade-in credit is allowed for equipment. Verify * The bill of sale or invoice must include all of the following: ¤ Tax Paid ¤ Date of Purchase ¤ Sales price ¤ Vehicle identification or serial number ¤ Signature of seller NOTE: If tax was paid out of state, verify that the state was reciprocal with MA, and that at least 6.25% was collected. Requiredf Documents: * A bill of sale or invoice from the dealer, on the dealer's letterhead, showing the tax paid. 03/15