Motor Vehicle Excise
Click here for Motor Vehicle Excise Abatement Application
MOTOR VEHICLE EXCISE INFORMATION AND TAX ABATEMENTS
M.G.L Chapter 60A
OVERVIEW
All Massachusetts residents who own and register a motor vehicle must annually pay a motor vehicle excise tax. The tax is levied by the city or town where the vehicle is principally garaged and the revenues become part of the local community treasury. Unregistered motor vehicles are subject to the personal property tax. Excise bills are prepared by the Registry of Motor Vehicles according to information on the motor vehicle registration. They are sent to city or town assessors who commit them to the local tax collectors for distribution and collection of payment. Commitments are issued several times per year.
An excise at the rate of $25 per one thousand dollars of valuation is levied on each motor vehicle. The valuation is based on the manufacturer's list price for the vehicle in its year of manufacture. Market value is not applicable to motor vehicle valuation for excise tax purposes. Massachusetts General Laws, Ch. 60A §1, establishes its own valuation formula for state tax purposes wherein only the manufacturer's list price and the age of the motor vehicle are considered. The formula is as follows:
- In the year preceding the designated year of manufacture 50%
- In the designated year of manufacture 90%
- In the year succeeding the designated year of manufacture 60%
- In the second year succeeding the designated year of manufacture 40%
- In the third year succeeding the designated year of manufacture 25%
- In the fourth and all succeeding years 10%
Owners of vehicles older than five years old should have a fixed excise tax bill for each succeeding year of ownership, and it should be based on a value which is no less than 10% of the manufacturer's list price in the year of manufacture for the vehicle being taxed.
COLLECTION AND PAYMENT
The Collectors Department is responsible for collecting motor vehicle excise. Payment of the excise is due 30 days from the mailing date of the excise bill. MGL Ch. 60A §2 states that "Failure to receive notice shall not affect the validity of the excise," which means that a person who does not receive a bill is still liable for the excise plus any interest and charges accrued. MGL Ch. 90 §26A states that "Every person in whose name a motor vehicle...has been registered...shall report any change of address in writing to the registrar within thirty days after the date on which such change was made." When changing address, therefore, contact the Registry of Motor Vehicles promptly to request an amended registration.
ABATEMENTS
If a vehicle owner thinks that they are entitled to an adjustment of their excise for any of the reasons which follow, they should pay the bill in full to avoid interest and charges for late payment. If an abatement is subsequently granted, a refund will be made to the taxpayer. Filing the abatement application, however, does not stay the collection of the tax. Applications for abatement are made to the Board of Assessors, and must be received by the assessors' within three years after the excise was due, or one year after the excise was paid, whichever is later. Taxpayers must file on time to preserve their right to an abatement. When an abatement is granted, the excise bill is prorated by the month.
OVERVALUATION
Valuation for excise purposes is determined by a fixed formula spelled out in the law. According to the statute, the manufacturer's suggested retail price (MSRP) of the vehicle, times a fixed percentage based on age, determines the assessed value. The minimum value is 10% of the MSRP, regardless of how old the car is. Therefore, in order to sustain a claim of overvaluation, you must show the MSRP being used is incorrect, assuming the year of manufacture shown on the bill is accurate. The actual purchase price or market value of the vehicle cannot and will not be given any weight. A letter from the RMV stating their error is needed for any adjustments.
REGISTRATION CANCELLED OR TRANSFERRED
Cancellation or transfer of a plate registration is not sufficient by itself to warrant an abatement of a tax bill. State law also requires that title to the vehicle be transferred. The date upon which both conditions are met will be the date upon which any adjustment will be made. Therefore, you cannot receive an abatement for simply taking a vehicle "off the road".
VEHICLE SOLD OR TRADED
Sale of the vehicle is not sufficient by itself to warrant an abatement of a tax bill. State law also requires that the registration be cancelled. The date upon which both conditions are met will be the date upon which any adjustment will be made. Please note that the sale or transfer of the vehicle without cancellation or transfer of the registration could leave you exposed to future tax liability. Additional bills may be issued subsequent to the sale. Any abatement of such additional bills will be made based on the date of cancelation of the plate registration.
VEHICLE REGISTERED IN ANOTHER STATE
Abatements will be calculated from the date you cancelled your plate registration with the RMV.
VEHICLE RETURNED TO THE SELLER UNDER THE "LEMON LAW"
Abatement of the bill is contingent upon both the cancellation or transfer of the plate registration and the refund of the sales tax or application of the sales tax to a replacement vehicle.
VEHICLE TOTALLED
An abatement cannot be processed until title to the vehicle has changed and the plate registration has been cancelled or transferred. Any adjustment will be made from the date of title transfer, the date of the registration transfer and/or cancellation, whichever is later, not from the date of the accident.
VEHICLE STOLEN
In order for an abatement to be processed, you must provide proof that you notified police within 48 hours of discovering the theft. In addition, you must provide proof that you have cancelled the plate registration with the Registry. Please note that the surrendering of the registration cannot occur before thirty days after the theft. The date you cancel the registration will be the date used to calculate the abatement, not the date of theft.
JURISDICTION TO ASSESS TAX - PLACE OF GARAGING
The community having jurisdiction to assess the tax is determined by the place of garaging in the Registry's records as of the tax date (January 1st), not as of the date the bill is issued. There are no partial adjustments based on a change in place of garaging subsequent to the tax date. Please note that the place of garaging is determined solely from Registry records; insurance company records will not be considered. The Board will rely on the date that you notified the Registry of the new place of garaging to determine if abatement of the bill is warranted, not on the date you claimed you moved. If an abatement is granted, the bill will be forwarded to your new community for rebilling at a later date. Notice from the RMV is required.
FAILURE TO RECEIVE TAX BILL
All bills are mailed to the address on record at the Registry of Motor Vehicles at the time of billing. Please note that under state law, you are required to notify the Registry of your new address within 30 days. If your bill was incorrectly addressed due to a clerical error at the Registry, appropriate steps will be taken so that you are not penalized. However, the Board will not make any adjustment if the bill was addressed correctly, or if it went to a previous address due to your failure to notify the Registry of your move, regardless of any claim that you failed to receive the bill. Please note the state law specifically states that failure to receive a bill has no effect on its validity or on the statutory penalties imposed to enforce collection. Failure to receive notice of tax bill is not sufficient to grant an abatement, as per M.G.L: Chapter 60A, Section 2 "The collector of taxes or the commissioner, as the case may be, shall seasonably notify the owner of the excise assessed and the due date, but failure to receive notice shall not affect the validity of the excise".
EXEMPTIONS
Chapter 60A §1 of the Massachusetts General Laws provides excise tax exemptions for vehicles owned by certain disabled individuals and veterans, active service members not permanent residents of Massachusetts, prisoners of war, and certain charitable organizations. Having a vehicle with handicap plates or decals does not automatically entitle one to an excise exemption, as the statute requires that a person suffer certain losses to be exempt from motor vehicle excise. However, if you are not determined to be 100% disabled or fall under the above criteria, a determination by the RMV Medical Advisory Board would be sufficient to determine eligibility. For more detailed information please call the Assessing Department at (978) 619-5608
Click here for Non-Veterans, disabled persons MVU-33 Form
Motor Vehicle Excise Exemptions - For both Non-Veterans and Veterans
Individuals, who qualify for exemptions from the motor vehicle excise for the non-business use vehicles they own and register, and the following persons acting on their behalf, may apply to the assessors:
•A qualifying owner’s spouse if the vehicle is jointly owned.
•A qualifying owner’s surviving spouse, executor under a will, or administrator of the estate.
The exemption may be applied to only one vehicle of the owner’s choice.
Disabled & Blind Non-Veterans – Vehicles owned and registered by some disabled and blind individuals for their personal use (not business) are exempt from motor vehicle excise. To qualify, a physician must sign and supply the State Form MVU-33 to the Assessors Office indicating that the individual:
•Lost both legs or both arms.
•Had a permanent impairment of vision meeting certain specifications in both eyes.
The exemption is based on whether the individual meets these disability standards, not whether the person has or qualifies for a handicapped plate under RMV regulations.
Disabled & Blind Veterans – The veteran must have been honorably discharged from peacetime or wartime military service. The veteran must be disabled due to that service according to the Veterans Administration who must certify that due to service the veteran:
•Has lost at least one foot or hand,
•Has a permanent impairment of vision meeting certain specifications in at least one eye.
•Is 100% disabled as certified by the Veteran's Administration.
•Or the Medical Advisory Board within the RMV has determined that the veteran is as permanently disabled and the RMV has issued a disabled veteran plate. If a person chooses not to have a DV plate, they can supply the evaluation/granted letter from the RMV medical advisory board.
Prisoners of Wars & Surviving Spouses – A vehicle owned and registered by a former prisoner of war or their surviving spouse (until remarriage), are exempt from one personal (non-business use) vehicle excise tax if supplied with the VA’s discharge documents stating the veteran was held as a prisoner of war.
A veteran who was a prisoner of war and owns more than one vehicle may have the exemption applied to the vehicle of choice. A full exemption is granted even if the veteran is not the sole owner of the
vehicle, e.g., co-owns it with his or her spouse.
Massachusetts Domiciliary Military Personnel – A vehicle owned and registered by military personnel who are Massachusetts domiciliaries are exempt from the motor vehicle excise if:
•The service person is on active military duty outside of the US for at least 180 continuous days of the year. If the service person is wounded or killed in an armed conflict, the 180 days limitation does not apply.
A servicemember, guardsman or reservist who qualifies and owns more than one vehicle may have the exemption applied to the vehicle of their choice. A full exemption is granted even if the servicemember, guardsman or reservist is not the sole owner of the vehicle, e.g., co-owns it with his or her spouse. The surviving spouse of the servicemember, guardsman or reservist does not qualify for an exemption.
Non-Massachusetts Domiciliary Military Personnel – Under the federal Service-members Civil Relief Act. 50 U.S.C. App. 571, any vehicle owned and registered by military personnel who are not Massachusetts residents are exempt from excise tax if the commanding officer of the service person certifies that the person is a domiciliary of another state and is stationed in MA due to orders. In addition to the service members vehicles, vehicles owned and registered by the service person’s spouse if domiciled with the service person or in the same state, as documented by the service member’s commanding officer are also exempted.
No vehicle used for business or trade purposes are eligible to receive the exemption.
PLEASE NOTE:
- The minimum bill is $5.00; the minimum abatement is $5.00. Therefore, no partial abatements can be made on bills less than $10.00.
- A partial abatement reduces only the original excise due (principal). All other fees, charges and penalties previously imposed will not be affected. Only full abatement of the tax can eliminate these amounts.
- Inquiries on fees and/or interest charges should be addressed to the Collector’s Department who has the discretionary authority on total amounts $15 or less according to M.G.L. Chapter 60 Section 15.
- All abatement requests or questions regarding abatements must be made directly to the Board of Assessors, City Hall Room 6, Salem MA 01970 or by calling (978)619-5608.
- By law, the deadline for filing for abatements is within three years after the excise was due, or one year after the excise was paid, whichever is later.
- Taxes and adjustments are prorated by month. Even if a vehicle is registered for only one day in the month, taxes are due for the full month.
- Revoked insurance/registration alone is not applicable for an abatement, the plates must be cancelled.
- Refunds (generated by the Collector’s department) will be issued to the person who made the payment. Please contact the Collector’s Dept regarding refund inquiries.
Excise Links
Registry of Motor Vehicles - Cancel Plates Link
Massachusetts Division of Local Services - Motor Vehicle & Trailer Excise Manual Link
Excise Tax RMV Information Link