Q: What is a motor vehicle excise?
A: Chapter 60A of Mass. General Laws imposes an excise on the privilege of registering a motor vehicle or a trailer in the Commonwealth of Massachusetts. The excise is levied annually in lieu of a tangible personal property tax. Non-registered vehicles, however, remain subject to taxation as personal property.
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 Revenu e requirements.
Q: How is the excise determined?
A: The amount of the excise is based on the value of the motor vehicle that is based upon the manufacturer’s list price.
Various percentages of the manufacturer’s list price are applied. The formula is as follows:
- In the year preceding the designated year of manufacture (brand new car 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%
Calculating the excise:
Once the value of the vehicle is determined, an excise at the rate of $25.00 per thousand is assessed. Excises are 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 1, 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.
Q: Can I get a vehicle excise abatement?
A: If an owner of a motor vehicle thinks that he/she is entitled to an adjustment of his/her excise bill, it is strongly recommended that he/she:
Pay the bill in full, and then contact the Assessor’s Office for an application for abatement. You can download an abatement form here /filestorage/80/162/237/271/mvabatelong.pdf You can download the instructions for the abatement form here Follow the directions on the form and send it to the Assessor’s Office.
Note: An owner is responsible for all late fees and penalties.
The Assessor’s Office must receive applications within 3 years after the excise is due or within one year after the excise is paid.
Example: Assume that an excise tax is due on February 25, 2004. The abatement deadline would be February 25, 2007, OR one year after the payment of the bill, whichever is later.
The tax bill should be paid as assessed. If the abatement application is approved, a refund will follow.
Q: Under what circumstances might motor vehicle excise abatement be warranted?
A: Abatements 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 8it is being taxed and the registration was properly canceled, or
- If the owner moved from the Town of Agawam to another city or town, or before January 1
- If the owner moved to another state and registered the vehicle and cancelled the registration 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.
Q: What if I’ve moved out of Agawam?
A: If the owner moved before the first of the year, he/she must pay the tax to the new community to which the owner moved. If the owner did not notify the Registry, the local assessor, and the post office that he/she moved before the first of the year, it may be necessary to file for an abatement with the former city or town which had sent the excise bill. Most cities or towns will dismiss the bill and re-route it to the new community once the owner furnishes proof that he/she had moved before the first of the year.
Q: What if I sold my car?
A: If an excise bill is received for a vehicle or trailer that has been sold, the seller must:
- Return to the plate(s) to the Registry of Motor Vehicles and obtain a return plate receipt.
- File an application with the Assessor’s Office for abatement together with the following:
- Return place receipt and bill of sale or
- New registration form
Q: How can I obtain a Motor Vehicle Abatement application?
A: You can download an abatement form here /filestorage/80/162/237/271/mvabatelong.pdf