Motor Vehicle Excise Tax
The motor vehicle excise is imposed on every motor vehicle and trailer registered in the Commonwealth. Registering a vehicle at the Registry of Motor Vehicles automatically triggers the assessment and billing of the tax.
The motor vehicle excise tax is assessed at a rate of 2.5% of taxable value. This value is set by the Registry of Motor Vehicles and tax bills are prepared by the Registry for issuance by the town. The original (model year) value is based upon the manufacturer’s list price according to the NADA Blue Book. This taxable value is adjusted each year in accordance with the following schedule:
- Year prior to model year - 50%
- Model year - 90%
- Second year - 60%
- Third year - 40%
- Fourth year - 25%
- Fifth year and each year thereafter - 10%
Motor Vehicle Excise tax bills are issued on a calendar-year basis. The bill is owed to the Town where the car was garaged as of January 1 based upon the registration address provided by the owner to the Registry of Motor Vehicles.
Vehicles registered for a portion of a calendar year are eligible for prorating based upon whole months. For new registration, this occurs automatically. For procedure due to cancelled or changed registration, please review Board of Assessors’ web-site or call at 978-897-4597.
Owners of vehicles registered as of January 1 can expect to receive a bill during February or March of that year. Vehicles purchased during the year produce a tax bill two to three months after purchase.
Questions regarding outstanding balances on Real Estate or Motor Vehicle Tax or payment by bank, please contact the office.
If you did not receive a tax bill but have received a pink demand notice, fees and interest must be paid according to MGL Chap. 60, Section 3 and 16 that states that failure to receive a bill shall not invalidate a tax or any procedures for collection enforcement.