Auto Excise Tax
Billing
Excise bills are prepared by the Registry of Motor Vehicles according to the information on your registration. The billing is then sent to the Assessor’s who commit the bills to the Tax Collector’s Office for distribution and collection.
Bill Computation
Your excise tax is $25.00 per the thousand of the valuation of your motor vehicle. Automobile valuations are derived from the figures published in the National Automobile Dealers Association Official Used Card Guide (NADA), to which the Registry has electronic access. Figures are the manufactures’’ list prices for vehicles in their year of manufacture. Present market value, price paid and condition are not considered for excise tax purposes. The excise tax law (MGL c.60A, s.1) establishes its own formula for valuation for state tax purposes whereby only the manufacturer’s list price and the age of the motor vehicle are considered. The formula is as follows:
- In the year preceding the designated year of manufacture (A 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%