Motor Vehicle Excise Tax FAQs
- What is motor vehicle excise?
- Where does billing data come from?
- How is the excise determined?
- How is the excise tax calculated?
- Is the bill prorated?
- Can I get motor vehicle excise abatement?
- What are the requirements for abatements?
- What if I've moved out of Belmont?
- What if I've moved out of Massachusetts?
- Am I eligible for any exemptions?
Under MGL Chapter 60A, all Massachusetts residents who own and register a motor vehicle must annually pay a motor vehicle excise. Also, under MGL Chapter 59, Section 2, it is important to note that every motor vehicle, whether registered or not, is subject to taxation, either as excise or personal property, for the privilege of road use, whether actual or future.
The excise is levied by the city or town where the vehicle is principally garaged and the revenues become part of the local community treasury..
The Registry of Motor Vehicles prepares data for excise bills according to the information on the motor vehicle registration and sends it to city or town assessors. Cities and towns then prepare bills based on excise data sent by the Registry in conformity with Department of Revenue requirements.
Valuation figures are the manufacturers' list prices for vehicles in their year of manufacture. Present market value, price paid, or condition are not considered for excise tax purposes. The excise tax law (M.G.L. c.60A, s.1) establishes its own formula for valuation for state tax purposes whereby only the manufacturer's list price and the age of the motor vehicle are considered. Various percentages of the manufacturer's list price are applied. The percentages are as follows:
- In the year preceding the designated year of manufacture (released before model year) - 50%
- In the designated 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%
Once the value of the vehicle is determined, an excise at the rate of $25.00 per thousand is assessed. Excise tax is assessed annually, on a calendar year basis, by the assessors of the city or town in which the vehicle is garaged.
If the 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 months of the year (April through December) and the excise due, therefore, will be 9/12 of the full excise. In no event shall the 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.
If the 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 months of the year (April through December) and the excise due, therefore, will be 9/12 of the full excise. In no event shall the 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.
Excises are prorated on a monthly basis. If a motor vehicle is registered after the beginning of any calendar year, no excise will be imposed for those months, if any, which have fully elapsed before the vehicle is registered. If a vehicle is registered for any part of a month, however, the excise will be due for all of that month. The annual excise due on a car registered after January 1 will be reduced, therefore, by 1/12 of the full year's excise for every month prior to the one in which the vehicle was registered.
Contact the Assessors office at (617) 993-2630 for an application for abatement or click here.
NOTE: On unpaid excise tax bills, an owner risks incurring late fees and penalties if an abatement is not granted.
The Assessors office must receive abatement applications within 3 years after the excise is due OR within one year after the excise is paid.
Example: Assume that an excise tax bill is due on February 25, 2008. The abatement deadline would be February 25, 2011, OR one year after the payment of the bill, whichever is later.
Under what circumstances might motor vehicle excise abatement be warranted?
Abatement applications can be filed if:
Example: Assume that an excise tax bill is due on February 25, 2008. The abatement deadline would be February 25, 2011, OR one year after the payment of the bill, whichever is later.
Under what circumstances might motor vehicle excise abatement be warranted?
Abatement applications can be filed if:
- the owner believes the assessment is incorrect, or
- if the vehicle was traded, or
- if the vehicle was stolen, or
- if the vehicle was sold during the year in which it is being taxed and the registration was properly cancelled, or
- if the owner moved from the Town of Belmont to another city or town, before January 1
- if the owner moved to another state and registered the vehicle and cancelled the registration in Massachusetts, or
- if the registration is cancelled, it is most important to return the plate(s) to the Registry of Motor Vehicles and to obtain a return plate receipt.
When an abatement is granted, excise bills are prorated by the month, thus the owner is responsible for the excise accrued through the month in which the car was last registered to him/her.
If you move within Massachusetts and have not paid an excise tax for the current year, you should:
- Pay the motor vehicle excise to the city or town in which the vehicle was registered on January 1.
- The excise for any particular year is due to the municipality in which the vehicle was registered on January 1 of that year. In the case of any person who moves during any particular registration year, the excise will be due to the city or town where the vehicle was registered on January 1 of that calendar year.
If a motor vehicle owner moves out of Massachusetts and has not paid an excise tax for the current year, he/she should:
File an application with the Assessors office for abatement together with the following:
- Registration form from the new State or Country, AND
- Plate Return Receipt from the Massachusetts Registry of Motor Vehicles
The Assessors office can then adjust the bill to reflect only the part of the year the vehicle was registered in the state, and grant the proper abatement. The bill is prorated back to the last day of the month in which the vehicle was registered in the state of Massachusetts. In no event shall the excise abatement be for less than $5.00, nor shall an abatement or refund under Section 1 of Chapter 60A reduce an excise tax to less than $5.00.
NOTE: It is important to remember that the bill for a vehicle that is no longer registered in the state of Massachusetts should not be ignored. On unpaid excise tax bills, an owner risks incurring late fees and penalties if an abatement is not granted.
Chapter 60A, Section 1 of the Massachusetts General Laws provides excise tax exemptions for vehicles owned by certain disabled individuals and veterans, ex-prisoners of war and their surviving spouses and certain charitable organizations. Please contact the Assessors office at (617) 993-2630 for further details on eligibility.
Change of addresses for Excise Tax are done through the Massachusetts Registry of Motor Vehicles. When you change the address for your vehicle registration plates, the Massachusetts Registry of Motor Vehicles will send that information to our office and our files will be changed.
You can find the Massachusetts Registry of Motor Vehicles change of address form here:
http://www.massrmv.com