The motor vehicle excise tax is imposed on every motor vehicle or trailer registered in Massachusetts. The tax is imposed for the privilege of using the roadways and for registering a motor vehicle. The registration process of a motor vehicle automatically triggers the assessment of the excise. The information found on an excise tax bill is provided during the time of registration by the Auto Dealership, agent or owner to the Registry of Motor Vehicles. This information, along with the M.S.R.P. provided by the manufacturer to the Massachusetts RMV, are used to determine the total valuation of each vehicle which is assessed an excise tax bill at the rate of $25 per 1,000 in value. The valuation of a vehicle is a function of the M.S.R.P and the age of a vehicle.
In the year preceding the 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%
Reason for Excise Abatements
If you've transferred the ownership by either trade-in, private sale, donation, total loss or moved to another state, you are entitled to an abatement on your excise tax bill.
The following documentation is required for this department to grant an excise tax abatement:
1) Proof of Transfer of the vehicle's Ownership
2) Proof of the transfer or cancellation of the registration on the vehicle
You may either bring these documents to the Assessors Department in Town Hall or you can now apply for an excise abatement online.