March 9, 1983
You inquire as to the applicability of the Massachusetts sales and use tax to the purchase of a loader by a contractor for use exclusively on public works projects.
Massachusetts General Laws imposes an excise upon sales at retail of tangible personal property. (M.G.L. c. 64H, § 2). Massachusetts General Laws Chapter 64H, Section 6(f) exempts from sales tax rental charges for construction vehicles, equipment, and machine (1) rented specifically for use on the site of any construction, reconstruction, alteration, remodeling or repair of public works owned by or held in trust for the benefit of any governmental body or agency, and used exclusively for public purposes; or (2) while being used exclusively for the transportation of materials for any such project. There is no exemption for the sale of a construction vehicle to a contractor for use exclusively on public works projects.
Based on the foregoing, it is ruled that a contractor's purchase of a loader for use exclusively on public works projects is subject to the Massachusetts sales and use tax.
Very truly yours,
/s/Ira A. Jackson
Ira A. Jackson
Commissioner of Revenue
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