Motor Vehicle FAQ

What is motor vehicle excise tax?

 

Motor vehicle excise tax is an annual tax for the privilege of registering a motor vehicle or trailer. Anyone who registers a vehicle in Massachusetts will receive an excise tax bill from the municipality where the vehicle is garaged. The amount of excise tax due is calculated by multiplying the value of the vehicle by the tax rate ($25.00 per thousand dollars of value). The value of the vehicle is determined by the Registry formula taking the applicable percentage for the year of the Manufacturer's Suggested Retail Price (MSRP). The manufacturers list price rather than the actual purchase price is used to calculate motor vehicle excise tax.


Applicable Percentage for the Year

In the year preceding the year of manufacture

50%

In the year of manufacture

90%

In the second year of manufacturer

60%

In the third year

40%

In the fourth year

25%

In the fifth and succeeding years

10%


Do not ignore your excise bill! Even though you may have sold, traded or otherwise disposed of the vehicle, your bill is always due thirty (30) days from the issue date. If the bill is unpaid and remains outstanding more than thirty (30) days after its issue date, it will accrue interest charges and fees for which you will be responsible. Your driver's license and/or vehicle registration will also be returned to the Registry of Motor Vehicles for non-renewal action.

 

When am I eligible for motor vehicle excise abatement?

 

Please note that an application for abatement does not mean that you do not pay your Motor Vehicle Excise Tax. In the event that an abatement is granted due to sale, trade, theft, loss, etc, the amount abated will be refunded to you. No abatement shall be granted for less than $5.00, and no amount shall be refunded below $5.00. The Board of Assessors has authority to abate an excise tax bill only if an application is timely filed. To be filed in a timely manner, an application must be received on or before December 31st of the year following the year to which the excise tax bill relates. Once registered in the year, a bill can be abated only if the vehicle is sold, traded, junked, totaled or otherwise disposed of and the plates are transferred to another vehicle or cancelled. If the vehicle is disposed of and the plates are not transferred or cancelled, no abatement can be issued; or if the plates have been cancelled or transferred and the original vehicle is not disposed of, no abatement can be issued.

You may be eligible for an excise abatement in any of the situations listed below. Come into the Assessor’s office to complete an abatement application and provide us with all the required documentation. All requested supporting documentation must be supplied for the bill to be abated.

  • Sold - Bill of sale and Plate Return Receipt or new registration if plate transferred
  • Traded - New registration or Plate Return Receipt and Purchase Agreement citing vehicle as trade-in
  • Stolen or Total Loss - Insurance Company Settlement Letter and C-19 form (Affidavit of Lost or Stolen Plate from Registry) or new registration if plate transferred
  • Moved from Massachusetts - Registration from new state and a Plate Return Receipt
  • Junked Vehicle - Receipt from junkyard and Plate Return Receipt or new registration is plate transferred.
  • Vehicle returned to Dealer - Letter from dealer acknowledging receipt of vehicle and Plate Return Receipt or new registration if plate transferred
  • Charitable Donation - Letter from Charity acknowledging receipt of vehicle and Plate Return Receipt or new registration if plate transferred

 

When your excise tax abatement is processed you will receive an Abatement Certificate from the Board of Assessors. If a refund is due, a check will follow from the Tax Collector.


For questions about vehicle registration information or vehicle valuation, call the Registry of Motor Vehicles Excise Tax Correction Bureau at (617) 351-9380 or visit their website at www.massrmv.com to change your address or get general information.

 

Who qualifies for a Motor Vehicle Excise Exemption?

Motor Vehicle Excise Blind Exemption:

To qualify for a motor vehicle, excise Blind Exemption, all of the following must be met:

  • Permanent impairment of vision in both eyes
  • Must own and register vehicle for their own personal use
  • Must submit either a certificate from the Division of the Blind or a physician's letter
  • Vehicle must be owned and registered by blind person


Motor Vehicle Excise Handicapped Exemption:

To qualify for a motor vehicle, excise Handicapped Exemption all of the following must be met:

  • Must suffer either the loss of or the permanent loss of use of both arms or both legs
  • A letter from a physician stating such loss
  • If exemption is sought due to loss of use of limbs, the letter must state that it is a permanent loss
  • Vehicle must be owned and registered by a handicapped person.

Motor Vehicle Excise Veteran Exemption:

To qualify for a motor vehicle excise Veteran Exemption all of the following must be met:

  • The vehicle is registered for personal, nonbusiness use
  • The Veteran was honorably discharged
  • The Medical Advisory Board within the Registry of Motor Vehicles (RMV) has determined that the Veteran has a permanent service-connected disability. The Medical Advisory Board determination is evidenced by a

o   Disabled Veteran (DV) plate

o   Medical Advisory Board letter notifying the veteran of its determination

  • The veteran must be disabled due to that service under one of the following standards:

o   Veterans Administration certifies that due to military service the Veteran has:

      • Actually lost at least one foot or hand
      • Has permanent impairment of vision meeting certain specifications in at least one eye (legal blindness)

Or:

  • The Medical Advisory Board within the Registry of Motor Vehicles (RMV) has determined that the Veteran has a permanent service-connected disability. The Medical Advisory Board determination is evidenced by a:

o   Disabled Veteran (DV) plate

o   Medical Advisory Board letter notifying the veteran of its determination

 

If a person qualifies for a motor vehicle exemption and owns more than one vehicle, they have the right to choose which vehicle the exemption is applied to.