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Motor Vehicle Excise Tax Abatement
Motor vehicle excise is taxed on a calendar year basis, from January 1 through December 31.
Excise Tax Valuation
Excise bills are prepared by the Registry of Motor Vehicles (RMV) according to the information on the motor vehicle registration. They are then sent to each municipality for distribution and collection of payment. Values are set by the RMV according to the manufacturer’s suggested retail price (MSRP) for vehicles in their year of manufacture.
All valuation issues should be directed to the Registry of Motor Vehicles to be corrected at the source. Present market value, price paid, and condition are not considered for excise tax purposes. Excise tax bills are calculated with a tax rate of $25 per one thousand dollars of valuation. Formula for excise tax valuation is as follows.
Valuation by Model Year
| Year Relative to Model Year | Excise Tax Valuation |
|---|---|
| In the year preceding the model year | 50% of MSRP |
| In the model year | 90% of MSRP |
| In the second year | 60% of MSRP |
| In the third year | 40% of MSRP |
| In the fourth year | 25% of MSRP |
| In the fifth and all succeeding years | 10% of MSRP |
If you have any questions about your vehicle's value, please contact the Registry of Motor Vehicles: (857) 368-8080 press 0 for a live person.
Abatements
You may be eligible for an excise tax abatement if the vehicle is sold, traded, junked, totaled or otherwise disposed of and the plates are cancelled or transferred to another vehicle. 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 but the original vehicle is not disposed of, no abatement can be issued.
The Application for Abatement must be received by the Assessor within three years after the excise is due, or one year after the excise is paid, whichever is later. If a vehicle is registered for any part of any month in a calendar year, the excise tax is assessed for the entire month.
No abatement or refund of less than $5 may be made.
To apply for abatement, follow these steps:
- Download and sign Application for Abatement of Motor Vehicle Excise Form 126-MVE (PDF),
- Supporting documentation listed in Section D of the application form.
- Email to the Assessor both the signed application form and the supporting documentation. Or mail to:
Assessor
29 Middle Road
Boxborough, MA 01719
Note: Make sure to attach the signed form and supporting documentation in the same email. Incomplete application will not be processed for abatement.
Filing an abatement application does not mean that collecting the excise tax has stopped. In order to avoid accruing interest, charges, and collection action, you must pay the excise taxes as invoiced by the specified due date to the tax collector.
Active Duty Military or Disabled Veteran
- Veterans with a 100 percent disability rating, or those deemed unemployable due to their service-connected disability as determined by the U.S. Department of Veterans Affairs (VA) are eligible for exemption on one motor vehicle owned and registered to them for personal, non-commercial use.
- Military soldiers and sailors who are stationed in Massachusetts due to military orders will need to provide a letter from their commanding officer establishing their absence from their domicile state due to compliance with military orders.
Handicapped Non-Veterans
Handicapped non-veterans will be required to provide documentation of certification by a physician of the existence of total loss of use as per Massachusetts General Law Chapter 60A, Section 1.
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