Motor Vehicle Excise Tax

MOTOR VEHICLE EXCISE TAX ABATEMENTS

An abatement is a reduction of your excise taxes.

You can file a motor vehicle excise abatement for the following reasons:

(1) If your vehicle was traded, stolen, or sold during the year it was taxed and you canceled your registration

(2) If you moved to another state, registered your vehicle in the new state and canceled your Massachusetts registration

(3) If you canceled your registration in the year, you were taxed

You must provide documentation for each of these reasons. Typically, the documentation must respond to; what happened to the vehicle (for example: bill of sale, insurance settlement letter) and what happened to the plate (plate return receipt or new registration).

If you think that you are entitled to an adjustment of your excise bill, it is strongly recommended that you pay the bill in full, then file an application for abatement. Although payment of a bill is not a precondition for an abatement, an owner risks incurring late fees and penalties if an abatement is not granted in time. Abatements are handled through the assessors’ office; however, the bill should be paid as assessed and a refund will follow if the abatement is granted.

Abatement deadline:

The assessors must receive abatement applications within three years after the excise tax was due, or one year after it was paid, whichever is later. To preserve your right to appeal, you must file an abatement on time. By law, assessors may only act on late applications in limited circumstances where the excise is still unpaid and their decision in those cases is final.

Note: You are not entitled to an abatement if you (1) cancel your registration and retain ownership of the vehicle, or (2) move to another Massachusetts city or town, during the calendar year. Abatements are pro-rated monthly. The minimum tax is $5.00. An abatement of less than $5.00 cannot be granted.