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Chapter 60A of the General Laws provides for the issuance of Motor Vehicle Excise tax bills for all motor vehicles that are registered.
The valuation for Motor Vehicle Excise tax purposes is based on a percentage of the manufacturer's suggested factory list price, new. In the year prior to the year of manufacture; for example a 2009 vehicle registered in 2008; the valuation would be 50% of the factory list price; in its first year (2009 in 2009) the valuation would be 90% of the factory list price; in the second year (2009 in 2010) the valuation would be 60% of the factory list price; in the third year; 40% of the factory list price; in the fourth year 25% of the factory list price and in the fifth year and older, 10% of the original factory list price.
The tax rate for this tax is $25.00 per thousand dollars of value. This is calculated from the date of registration to the end of the calendar year. It is prorated by the month, so whether a vehicle is registered the beginning or the end of the month, the billing starts with that full month.
Once a vehicle is registered, a bill is created by the Registry of Motor Vehicles and sent to the community where the vehicle is garaged, for billing. If the vehicle is registered in Massachusetts, but garaged outside of Massachusetts, the bill will be issued by the Department of Revenue. The bill is due in thirty days, after which a second notice (or demand) is issued with a $5.00 demand and interest. After 14 days if the bill is still unpaid, the bill will go on warrant which will add warrant fees and deputy fees. If the bill continues to go unpaid, notice will be sent to the Registry of Motor Vehicles to mark the person's license and registration for non-renewal. After that, in order for a person to renew their license and/or register a vehicle, all taxes and fees must be paid in addition to a fee for the release of the lien which indicates all monies due have been paid. On occasion a person will move out of state and feel that they can ignore the bill. However, when they try to register a vehicle or get a license to drive in that other state, the other states' Registry of Motor Vehicles, will check the computer records and if there is any indication that the person owes monies for taxes, anywhere, they will have to pay what they owe before the new state will issue them a license or registration. There is a reciprocal agreement amongst the states whereby they will check for unpaid excise taxes, or fees. This also includes parking tickets. An unpaid parking ticket can also result in the Registry being notified to mark the person's records for non renewal.
If, after the vehicle is registered, the person sells, trades, junks, or otherwise disposes of their vehicle, and either transfers their registration to another vehicle or turns their plate in to the Registry and gets a plate return receipt, they can apply for a partial abatement of their taxes. When a tax bill is issued, there is an abatement application printed on the back of the bill, which can be completed and returned to the Board of Assessors with the necessary documentation, so that an abatement will be issued. If a vehicle is in an accident and totaled, a letter from the insurance company is necessary stating the date of settlement. If a vehicle is repossessed, a letter from the company who repossessed the vehicle giving the date of repossession is necessary. If a person moves out of state and reregisters the vehicle in that new state, a copy of the Massachusetts plate return receipt and the new state registration is needed. Any time a vehicle is disposed of, totaled, repossessed and the plate is not transferred to another vehicle, the plate must be returned to the Registry and a plate return receipt obtained. If the plate is lost or stolen, a form C-19, which is a lost plate affidavit, must be filed with the Registry of Motor Vehicles, so it can be provided to the Assessors when applying for an abatement. To get an abatement, both things must happen; disposition of the vehicle and the transfer or cancellation of the plate. If a vehicle is taken off the road and not sold, an abatement cannot be issued. If a vehicle is sold and the plate is not transferred or cancelled, an abatement cannot be issued. If the vehicle is stolen and the local police are notified within 48 hours of the discovery of the theft and the certificate of registration is surrendered not less than thirty days after the theft and the registrant has received a certificate of cancellation of registration signed by the Registrar of Motor Vehicles or his authorized agent verifying that the subject vehicle was stolen, an abatement can be applied for. They would also have to provide the Assessors with a letter from the insurance company giving the date of settlement for the loss.
A person may also file for an abatement if they register the same vehicle more than once in the same year. They will be responsible for the bill for the original registration of the vehicle and receive an abatement of the bills for the subsequent registrations. An abatement may also be filed for reason of overvaluation. This could happen if there is not a proper description of the vehicle on the registration. The valuation would be based on the manufacturer's suggested list price as noted in the NADA book. Documentation such as an original bill of sale and/or registration and insurance coverage selection sheet would be needed.
There are several exemptions from the Motor Vehicle Excise tax. One of the exemptions applies to vehicles owned and registered by the Commonwealth or any of its political subdivisions; another to vehicles owned and registered by charitable or religious organizations whose personal property is exempt under Mass. General Law Chapter 59, Section 5, Clauses 3 and 10. Also exempt are vehicles owned and registered by a leasing company, when the vehicle is leased for a full calendar year to a charitable organization, other than a degree granting or diploma awarding institution.
A handicapped non-veteran who has the loss or permanent loss of use of both arms or both legs or is blind in both eyes, who can provide a doctor's letter to the Board of Assessors can apply for a exemption from the tax. These persons may or may not have a handicap plate. It is not the plate that provides for the exemption, it is person's condition. For a disabled veteran who has a service connected loss or permanent loss of use of one or both arms or one or both legs or is blind in one or both eyes, the tax can also be exempted. A letter or certificate from the VA is necessary for documentation. In this case, the veteran may or may not have a disabled veteran's plate. It is their condition that provides for the exemption. This exemption is limited to one motor vehicle owned and registered for personal, non-commercial purposes.
Chapter 260 of the Acts of 2006 has created a new exemption for certain disabled veterans. The Registry of Motor Vehicles has a Medical Advisory Board who upon application by a veteran, will determine if they have a condition, other than those noted above, that they feel warrants a disabled veteran's plate to be issued to them. Starting in November, 2006, a disabled veteran with a DV (disabled veteran's) plate can apply for an exemption of their excise tax bill. This exemption is limited to one motor vehicle owned and registered by the veteran for personal, non-commercial purposes.
Subject to local acceptance, the excise tax for a vehicle owned and registered by a former prisoner of war or their surviving spouse, can also be exempted. Documentation of time spent as a prisoner of war must be provided. This would usually be noted on the serviceman's discharge papers. The City of Quincy has adopted this section of the law.
If a serviceman is legally domiciled in a state other than Massachusetts, but is stationed here in Massachusetts, and has a vehicle registered, their motor vehicle excise tax bill can be abated. They will have to provide a letter from their commanding officer indicating the state of their legal domicile. This is not provided for in Chapter 60A but is a result of a court case "Buzzard vs the State of California".
All exemptions shall be for only one vehicle owned and registered by the person seeking the exemption and shall on a vehicle used for personal, non-commercial purposes.
All applications for abatements or exemptions must be filed with the Board of Assessors within three (3) years after the date the excise was due, or one (1) year after the excise was paid, which ever is later. If the taxpayer's application is denied, there can be an appeal to the Appellate Tax Board.
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