SENATE, No. 1695

SECTION 1. Section 6 of chapter 64H, as appearing in the 2004 Official Edition, is hereby amended by inserting after paragraph (ww) the following paragraph:--

(xx) Sale of a motor vehicle to a person who is not a resident of the commonwealth who does not register the motor vehicle in the commonwealth, whether the sale or delivery of the motor vehicle to the nonresident is made in or outside the commonwealth.  A motor vehicle sold to a nonresident whose state of residence does not allow a like exemption to its nonresidents shall not be exempt from the tax imposed under this chapter.  In that event the nonresident shall pay a tax to the commonwealth on the sale at a rate equal to the rate that would be imposed in his or her state of residence not to exceed the rate that would have been imposed under this chapter.  When a motor vehicle dealer, licensed pursuant to section 58 and 59 of chapter 140, makes a sale of a motor vehicle to a nonresident as provided in this paragraph, the dealer in computing the tax shall take into consideration the law of the state of the nonresident as it relates to the trade-in of motor vehicles.  The commissioner may require any licensed motor vehicle dealer to keep records of sales to bona fide nonresidents as the commissioner deems reasonably necessary to substantiate the exemption provided in this paragraph, including the affidavit of a licensed motor vehicle dealer that the purchaser of the motor vehicle was the holder of and had in his or her possession a valid out of state driver's license. Any nonresident who registers a motor vehicle in the commonwealth within 90 days of the date of its sale to him or her is deemed to have purchased the motor vehicle for use, storage, or other consumption in the commonwealth, and is subject to, and liable for the tax imposed under this chapter.