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Letter Ruling

Letter Ruling Letter Ruling 83-15: Construction Vehicles Purchased For Use in Public Works Projects

Date: 03/09/1983
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Sales and Use Tax

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


LR 83-15

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