Motor Vehicle Excise
Motor vehicle excise is imposed for the privilege of registering a motor vehicle.
Registering a vehicle triggers the assessment of the excise.
The rate is $25 per thousand in value. This is the standard rate for the entire state.
The value of a motor vehicle for excise purposes is determined by the Commissioner of Revenue at varying percentages of the manufacturer’s list price in the year of manufacture as follows:
-In the year preceding the designated year of manufacture 50%
-In the year of manufacture 90%
-In the 2nd year 60%
-In the 3rd year 40%
-In the 4th year 25%
-In the 5th and succeeding years 10%
Condition and market value are not considerations in determining the value, not is the age after the 5th year.
Two actions are necessary in order to file for an abatement: A vehicle owner must transfer title of the vehicle AND cancel the registration on that vehicle.
Documentation that is required:
Vehicle sold or traded: Bill of sale AND proof of cancellation of registration or new registration if plates transferred to another vehicle.
Moved from Massachusetts: Copy of MA plate return receipt AND a copy of the new state registration.
Vehicle stolen or totaled: Police report or insurance company settlement letter AND proof of cancellation or transfer of registration.
Moved to another city/town: Copy of insurance coverage selection page showing the place of garaging as of January 1 of the taxing year or as the date of registration of the vehicle.
