Under Massachusetts General Laws, Chapter 60A, an excise shall be assessed on every motor vehicle and trailer registered during the calendar year.
BILLING
Excise tax bills are prepared by the Registry of Motor Vehicles from their database according to the information on the registration. They are then sent to the assessors in the different cities and towns, who commit them to the tax collector for distribution and collection of payments. The proceeds become a part of the general funds of the municipality.
BILL COMPUTATION
The value of a motor vehicle for excise purposes is determined by the Commissioner of Revenue and is based on the manufacturers list price (MSRP) in the year of manufacture at varying percentages, as follows:
In the year preceding the designated year of manufacture In the year of manufacture In the second year In the third year In the fourth year In the fifth and consecutive years
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50% 90% 60% 40% 25% 10% |
Condition and market value are not considerations in determining the value, nor is age after the fifth year. The rate of $25.00 per thousand is levied on each motor vehicle and trailer, effective beginning calendar year 1981. No excise shall be for less than $5.00 for 1985 and thereafter.
ABATEMENTS
An abatement is in order in the following cases:
1. When the motor vehicle is sold, traded, or otherwise disposed of and the Registration transferred or turned in the RMV, 2. When the registrant and motor vehicle are transferred to another state or County with proof of registration in such other state or county and proof of cancellation of the Massachusetts registration, 3. When a motor vehicle is overvalued, 4. When there is a subsequent registration of the same vehicle in the same year by the same person, 5. When a vehicle is stolen and notification of theft within 48 hours is given to police and certificate of registration surrendered not less than Thirty (30) days after the theft and certificate from Registry verify same.
A proportionate abatement of the excise may be granted if any of the above conditions are met and the application is properly filed. Application for abatement must be filed with the assessors office in writing on an approved form on or before December 31 of the year following the year for which the excise is assessed. Note: The filing of an abatement does not stay the collection of your excise. It should be paid as assessed. Refund will follow if an abatement is allowed. Forms for applying will be mailed upon request from the assessors office.
EXEMPTIONS
The following are exempt from motor vehicle and trailer excise tax:
1. Any vehicle owned and registered by the Commonwealth or any political subdivision (city/town/county/federal). 2. Any vehicle owned and registered by a corporation whose personal property is exempt from taxation under Chapter 59, Section 5, Clause 3 (literary, charitable, scientific, or temperance institutions), and Clause 10 (religious organizations). 3. Any vehicle leased for a full calendar year to a charitable organization (this does not include a degree
granting or diploma awarding institution) by a lessor in the business of leasing motor vehicles. 4. Any vehicle with an XPOW plate. 5. A vehicle owned and registered by a disabled veteran who has lost, or lost the permanent use of, one or both arms, one or both legs or is blind in one or both eyes. Certificates from the Veterans Administration are required for the first filing1. 6. A vehicle owned and registered by a person who has lost, or lost the permanent use of, both arms, both legs or is blind in both eyes. A doctor's certificate is required for the loss of arms and legs, and a certificate from the Division of the Blind is required for blindness. 7. A vehicle owned and registered by a non-domiciliary serviceman who is in Massachusetts due to military orders. Limit, two cars or trailer, for personal use. Statement from Commanding Officer or Personnel Officer is required annually. (This is not in Chapter 60A. This is due to a Supreme Court Decision, January 18,
1966 - California vs. Buzzard.)
If you have any questions about this or any other part of the taxation process, please let us know by calling:
978-897-1004
You may also call the Registry's Excise Division Customer Service Number at:
617-351-9380
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