Sec. 1. 36 MRSA §1766 is enacted to read:

§1766.__Purchase of a replacement motor vehicle

In a casual sale, when a person sells a motor vehicle and within 30 days purchases another motor vehicle as a replacement, the tax imposed by this Part is levied only upon the difference between the sale price of the replacement motor vehicle and the sale price of the motor vehicle being replaced.

SUMMARY

Current law allows the subtraction of a trade-in credit from the taxable amount of sales of certain tangible personal property. This bill allows a private person to subtract the value of the sale of a motor vehicle from the taxable amount of a replacement for that motor vehicle if the person purchases the replacement within 30 days of the sale of the original motor vehicle.