Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 64H of the General Laws is hereby amended by striking out section 26, as appearing in the 1996 Official Edition, and inserting in place thereof the following section:-

Section 26. Where a trade-in of a motor vehicle or trailer is received by a dealer in such vehicles holding a valid vendor's registration, upon the sale of another motor vehicle or trailer to a consumer or user, the tax shall be imposed only on the difference between the sales price of the motor vehicle or trailer purchased and the amount allowed on the motor vehicle or trailer traded in on such purchase. When any such motor vehicle or trailer traded in is subsequently sold to a consumer or user, the tax provided for in this chapter shall apply. For the purposes of this section, the term "motor vehicle" shall mean a self-propelled vehicle designed for use and used primarily upon the highway. The term "motor vehicle" shall also mean "snow vehicle" and "recreation vehicle" as defined in section 20 of chapter 90B.

SECTION 2. Chapter 64I of the General Laws is hereby amended by striking out section 27, as so appearing, and inserting in place thereof the following section:-

Section 27. Where a trade-in of a motor vehicle or trailer is received by a dealer in such vehicles holding a valid vendor's registration, upon the sale of another motor vehicle or trailer to a consumer or user, the tax shall be imposed only on the difference between the sales price of the motor vehicle or trailer purchased and the amount allowed on the motor vehicle or trailer traded in on such purchase. When any such motor vehicle or trailer traded in is subsequently sold to a consumer or user, the tax provided for in this chapter shall apply. For the purposes of this section, the term "motor vehicle" shall mean a self-propelled vehicle designed for use and used primarily upon the highway. The term "motor vehicle" shall also mean a "snow vehicle" and a "recreation vehicle" as defined in section 20 of chapter 90B.

SECTION 3. Section 20 of chapter 90B of the General Laws, as so appearing, is hereby amended by striking out the definition of "Snow vehicle" and inserting in place thereof the following definition:-

"Snow vehicle", a motor vehicle designed to travel over ice or snow, having a curb weight of not more than 453 kilograms or 1,000 pounds, driven by track or tracks in contact with the snow or ice and steered by a ski or skis in contact with the snow or ice.