* To fund state and local government services. Sales tax is a major source of revenue for the state of Massachusetts. In fiscal year 2021, the state collected $2.3 billion in sales tax revenue, which accounted for 15.6% of all state tax revenue. This money is used to fund essential public services, such as education, healthcare, and transportation.
* To discourage people from buying cars. Sales tax on cars is a way to make cars more expensive, and this can discourage people from buying them. This is especially important in Massachusetts, which has a very limited amount of land and a high population density. By discouraging people from buying cars, the state can help to reduce traffic congestion and air pollution.
* To encourage people to buy more fuel-efficient cars. The state of Massachusetts offers a sales tax exemption for electric vehicles and certain hybrid vehicles. This is an incentive for people to buy more fuel-efficient cars, which can help to reduce greenhouse gas emissions and improve air quality.
Overall, there are a number of reasons why you pay sales tax on cars in Massachusetts. These reasons include funding state and local government services, discouraging people from buying cars, and encouraging people to buy more fuel-efficient cars.
