Motor Vehicle Excise Tax
About
M.G.L. Chapter 60A imposes an excise on the privilege of registering a motor vehicle or a trailer in the Commonwealth of Massachusetts. The excise is levied annually in lieu of a tangible personal property tax. Non-registered vehicles, however, remain subject to taxation as personal property.
Valuation
A vehicle's excise valuation is based on the manufacturer's list price (M.S.R.P.) in the vehicle's year of manufacture. Various percentages of the manufacturer's list price are applied as follows:
- in the year preceding the designated year of manufacture 50%
- in the year of manufacture 90%
- in the second year 60%
- in the third year 40%
- in the fourth year 25%
- in the fifth and succeeding years 10%
Calculating the Excise
Once the value of the vehicle is determined, an excise at the rate of $25.00 per thousand is assessed. Excises are assessed annually, on a calendar year basis, by the Assessor of the municipality in which the vehicle is primarily garaged.
If a motor vehicle is registered after January 31, it is taxed for the period extending from the first day of the month in which it is registered to the end of the calendar year. For example, if a vehicle is registered on April 30, it will be taxable as of April 1, for the nine remaining months of the year (April through December) and the excise due, therefore, will be 9/12 of the full excise. In no event shall an excise be assessed for less than $5.00, nor shall an abatement or refund under Section 1 of Chapter 60A reduce an excise to less than $5.00.
Abatements
I don’t have this vehicle anymore. Do I still have to pay this bill?
You may be entitled to receive a motor vehicle abatement on your auto excise. In order to successfully apply for a Motor Vehicle Excise Tax Abatement, the Assessors will require proof from you that you disposed of the motor vehicle (or trailer) and the plate.
Following is a list of reasons that would entitle you to an abatement. Aside from a completed Motor Vehicle Abatement Form, you must provide the Assessor's Office with a copy of your Plate Return Receipt or a new Registration from the Registry of Motor Vehicles, ALONG WITH:
If you Traded or Sold the Vehicle:
Provide a copy of the dealer’s sales contract, or a copy of the bill of sale.
If the Vehicle was Junked or Repossessed:
Provide a copy of the junk yard receipt or letter from the finance company stating when the vehicle was taken.
If the Vehicle is a Total Loss:
Provide a letter from your insurance company showing the accident date, and that they deemed the vehicle a total loss, or a police report l
If the Vehicle was Stolen:
Provide a letter from your insurance company showing the date of settlement, or a police report
If the Vehicle was Registered in Another State:
Provide a copy of the Out of State Registration.
If the Vehicle was Registered in Another Town in Massachusetts:
If you moved to another town, provide a copy of your coverage selection page from your insurance binder. This page will show code of the town your vehicle is primarily garaged as of January 1st. Your excise tax is due to the city or town in which your vehicle is primarily garaged on January 1st.
It is necessary to provide the Assessors with a copy of the Plate Return Receipt from the Registry of Motor Vehicles; or if the plate was transferred to another vehicle, a copy of the new registration.
Please Note:
- The minimum motor vehicle excise tax shall be $5.00;
- No abatement shall reduce the motor vehicle excise tax to less than $5.00;
- No abatement shall be issued on a motor vehicle excise tax bill for less than $5.00;
- No abatement shall be granted on a registration that is cancelled in the month of December; and
- Cancellation of license plate alone does not warrant an abatement of motor vehicle excise tax. If you are still in possession of the vehicle, you owe the tax through the end of the calendar year.
Some further notes:
All vehicles registered as of January 1st will receive a tax bill from the community in which your vehicle is garaged. You determine this at the time you register your vehicle.
If you move during the year to another city or town, it is the taxpayer’s responsibility to change his/her mailing address and vehicle’s place of garaging with the Registry of Motor Vehicles prior to January 1st, so that your future tax bills reach you at your new address.
To cancel the registration on any motor vehicle, a plate cancellation receipt must be obtained at the Registry of Motor Vehicles.
If lost or stolen, you must fill out a lost plate affidavit at the Registry of Motor Vehicles, or contact a Branch Office.
Additional Registry of Motor Vehicle information can be obtained on the Official Website of the Massachusetts Registry of Motor Vehicles, here.
Filing for an abatement does not remove the taxpayer's obligation from paying the taxes. To avoid charges and penalties, you should pay your tax and then file for an abatement. A refund will follow, if granted.