May 9, 1980
You inquire whether an owner-operator of a motor vehicle who leases the vehicle to a company authorized by the Interstate Commerce Commission as an interstate carrier under a designated docket number or certificate, must himself be an authorized ICC carrier for the sale and use of the motor vehicle to be exempt from Massachusetts tax.
Massachusetts General Laws Chapter 64H, Section 6(a) exempts from sales and use tax sales which the Commonwealth is prohibited from taxing under the Constitution or laws of the United States.
Massachusetts Department of Revenue Sales and Use Tax Regulation 64H.02 provides that the sale and use of a motor vehicle in interstate commerce shall be exempt from the use tax if:
1. The motor vehicle has been authorized by the ICC as an interstate carrier under a designated docket number or certificate;
2. Delivery and possession of the motor vehicle was taken by the purchaser outside of Massachusetts; and
3. The motor vehicle entered Massachusetts for the first time with a load of passengers or freight in interstate commerce.
It further provides that to substantiate a claim for this exemption a purchaser must submit proof in writing to the Commissioner that all three requirements have been met.
Based on the foregoing, it is ruled that the sale or use of a motor vehicle sold to an owner-operator who himself has not been authorized by the ICC as an interstate carrier under a designated docket number or certificate is subject to tax.
Very truly yours,
/s/L. Joyce Hampers
L. Joyce Hampers
Commissioner of Revenue