MOTOR VEHICLE EXCISE TAX

Motor Vehicle & Trailer Excise Tax is assessed for any vehicle or trailer registered in Massachusetts. The bills are generated each year from information provided to the Town by the Registry of Motor Vehicles (RMV). 

Excise Tax is billed from and paid to the city or town where the vehicle or trailer is "garaged" according to RMV records. 

If you move from Arlington but do not notify the RMV within 30 days of your move, you may be responsible for the excise tax bill issued by Arlington.

A bill for a vehicle you no longer own, should not be ignored.

No longer having the vehicle or cancelling the Registration prior to the issuance of the bill does not void the bill, you must file a motor vehicle excise abatement application.

VALUATION

The valuation is determined by the Commissioner of Revenue is a certain percentage of the manufacturer's suggested retail price (MSRP) in the model year.

The Motor Vehicle Excise Tax Law establishes its own formula for valuation, and is for excise tax purposes only. This valuation is NOT based on the actual purchase price or "book value" of the vehicle. Present market value, price paid or condition are not considered for excise tax purposes.

The formula is as follows:

Applicable Percentage from   M.G.L.  Ch. 60A § 1	% of MSRP	For Calendar Year 2024
In the year preceding the model year	50%	model year of 2025, registered in calendar 2024
In the model year	90%	model year of 2024
In the second year	60%	model year of 2023
In the third year	40%	model year of 2022
In the fourth year	25%	model year of 2021
In the fifth & all succeeding years	10%	model year of 2020 & older

 

The tax rate for excise tax is fixed at $25 per $1000 of valuation.

Example: a 2023 vehicle with an MSRP of $32,000, full year (12 months) of excise in 2024.

$32,000	X	60%	=	$19,200	X	.025	=	$480
MSRP		% of MSRP		Valuation		rate 25/1000		excise tax amt.

ABATEMENTS

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, then apply for abatement. The Assessors' Office by law has 3 months to act on any application. An application for Abatement does not stay the collection of excise or the collection process. UNLESS A BILL IS ABATED IN FULL, FEES UP TO $89.00 PLUS INTEREST WILL REMAIN YOUR RESPONSIBILITY.

Excise Abatement Application

If your vehicle is leased, the application must be completed by the leasing company.

You are not entitled to an abatement if you (1) cancel your registration but retain ownership of the vehicle, or (2) move to another Massachusetts city or town, during the same calendar year. Abatements are pro-rated by the number of months in the calendar year after the month the last eligibility requirement takes place. No excise may be reduced to less than $5.00. No abatement or refund of less than $5.00 may be made.

You may be entitled to an abatement of the excise tax if you:

• No longer own the vehicle
• Moved out of Massachusetts
• Reported the vehicle stolen

A Registration Cancellation Receipt on its own is NOT sufficient documentation for an abatement. 

All reasons for abatements must be proven. In most cases the Assessors' Office requires documentation to show what was done with the:

1. vehicle (sold, traded, junked, donated, registered in another state)
   AND
2. registration (cancelled or transferred to another vehicle)

 * NOTE: Registering your vehicle in another state does not automatically cancel your Massachusetts Registration.

Massachusetts Registry of Motor Vehicle, see online transactions, including cancel a registration. 

Please see abatement application for required documentation for each reason for abatement.

Applications may be submitted via email to the assessors@town.arlington.ma.us or mailed to :
Assessors Office
Arlington Town Hall
730 Massachusetts Ave.
Arlington, MA 02476

EXEMPTIONS 

An application and documentation of eligibility is required.

An exemption may be granted if a motor vehicle is owned & registered by any of the following:

• Governments- The United State, the Commonwealth of Massachusetts, or any political subdivision of Massachusetts.
• Charitable or religious organizations
• Disabled or blind veterans - exempt on 1 vehicle, maybe registered jointly, if:
  1.) The veteran was honorably discharged from peacetime or wartime military service.
  AND
  2.) The Veterans Administration certifies that, due to military service, the veteran:
        a) has lost at least 1 foot or hand
        b) has permanently lost use of a least 1 foot or hand, or
        c) has permanent impairment of vision in at least 1 eye
  OR
  3.) The Medical Advisory Board (MAB) in the RMV has determined that the veteran has a permanent service-connected disability, proven by:
      a) A disabled veteran (DV) plate, or
      b) MAB letter notifying the veteran of its determination

Unfortunately having a disability rating 100% issued by the Veterans Administration is not sufficient to qualify for an exemption.

The surviving spouse of the veteran does not qualify for an exemption.

The following servicemembers (and their spouses) are exempt for any vehicle registered in Massachusetts:
     A servicemember whose domicile is in a state other than Massachusetts, and is stationed locally due to military orders, as documented by the servicemember's commanding officer.

• Disabled or blind persons (non veteran) - Exempt on 1 vehicle of choice that they own and register if the person:

a) Has lost both legs or both arms,

b) Has permanently lost use of both legs or both arms, or

c) Has permanent impairment of vision in both eyes.

The surviving spouse of the person does not qualify for an exemption.

Having a Handicapped placard alone does not qualify for an exemption.

For more information concerning excise please visit https://www.mass.gov/guides/motor-vehicle-excise

For questions concerning excise, please call the Assessors Office at (781) 316-3050 or email assessors@town.arlington.ma.us

 

ABATEMENT REASONS	REQUIRED DOCUMENTATION (please provide copies)
Vehicle sold	Bill of sale AND either Registration cancellation receipt from Registry of Motor Vehicles (RMV) or new registration certificate if plate is transferred to another vehicle.
Vehicle traded	Purchase agreement citing vehicle as Trade-In AND copy of new Registration certificate (if plate was transferred) or Registration cancellation receipt (if new registration acquired).
Vehicle total loss or stolen	Insurance company settlement letter or police report AND either registration cancellation receipt or new registration certificate if plate is transferred to another vehicle.
Vehicle repossessed	Notice from lienholder AND either registration cancellation receipt or new registration certificate if plate is transferred to another vehicle.
Vehicle donated	Donation receipt AND either registration cancellation receipt or new registration certificate if plate is transferred to another vehicle.
Vehicle junked	Receipt from junk yard AND either Registration cancellation receipt, or new registration certificate if plate is transferred to another vehicle.
Vehicle returned      (Lemon Law)	Letter from dealer certifying return AND registration cancellation receipt of new registration form if plate is transferred to another vehicle.
Move from Massachusetts	Registration cancellation receipt from Massachusetts RMV AND registration form from new state or country.*
Exemption	Please provide documentation that establishes your qualifications

 

Under M.G.L. c.60A:2 as amended by Chapter 262, sections 10-11, of the Acts of 2004, abatement applications must be received by the assessors within three years after the excise bill was due, or one year after it was paid, whichever was later. An owner needs to apply on time to avoid losing his/her appeal rights. The assessors have some discretion to act on late applications, but the excise must still be outstanding and the owner cannot appeal. If the assessors decline to grant a discretionary abatement, however, the owner can then pay the excise, apply for an abatement within one year of the payment date and appeal the assessor's decision on that application if he/she disagrees.

Your application for abatement of motor vehicle or trailed excise tax must be received by the Assessors' Office within 3 years from when the excise was due or one year after the excise was paid, whichever is later.