Motor Vehicle Excise Tax

As per Massachusetts General Law, Chapter 59, Section 2 every motor vehicle, whether registered or not is subject to excise tax or personal property tax. Excise Tax is used to maintain all roads within the community. When you register a vehicle it triggers the assessment of excise tax.

VALUATION:

Excise tax bills are prepared by the Registry and sent to the Town.
The value of every vehicle is also determined by the Registry of Motor Vehicles. The values are based on the Manufacturer’s Suggested Retail Price. All value issues should be addressed with the DMV. The value is based on the year of manufacture (See Below) not the present market value, price paid and/or condition. As per Massachusetts General Law, Chapter 60A, Section 1 the excise tax values are determined as shown below.

Valuation per Model Year:
The year preceding the model year…………………………..50% of MSRP
First Year of Model (New)..…………………………………….90% of MSRP
Second Year……………………………………………………..60% of MSRP
Third Year………………………………………………………..40% of MSRP
Fourth Year………………………………………………………25% of MSRP
Fifth and remaining years………………………………………10% of MSRP     

Example: 2021 Car MSRP = $25,000
Year 1 @ 90% of MSRP = $22,500
Year 2 @ 60% of MSRP = $15,000
Year 3 @ 40% of MSRP = $10,000
Year 4 @ 25% of MSRP = $6,250
Year 5+ @ 10% of MSRP = $2,500

**All excise taxes are prorated by month. If a vehicle is registered for any part of a month it is taxed for the entire month.  

ABATEMENTS: 
An abatement can be applied up to three years from the date of the bill or one year after the excise tax was paid. In order to apply for an abatement the vehicle plate must be canceled or transferred to a new vehicle. You can cancel the plate at the RMV website

https://atlas-myrmv.massdot.state.ma.us/myrmv/_/#1

The abatement application can be found on the Assessor’s web page under “Forms”. Once completed and signed, return the application and supporting documents to the Assessor office at asquithk@leicesterma.org or gennas@leicesterma.org, dropped off or mailed to the office.

Supporting Documents: Please submit copies of the following as needed:

  • Car Sold – Bill of Sale and Plate Cancellation Receipt.
  • Car Traded – Sales contract showing traded, new registration if plate was transferred or plate cancellation receipt.
  • Moved to Another State/Town – Proof of registration in another state or Town. Plate Cancellation Receipt if moved out of state. Please note other states DO NOT notify Massachusetts that you have registered a car in their state. You have to cancel the plate.
  • Stolen or Totaled – Police Report or Insurance company letter declaring loss. Plate Cancellation Receipt or Lost Plate Affidavit or new registration.
  • Vehicle Junked – Receipt from junkyard, plate cancellation receipt.
  • Vehicle Repossessed – Notice from Lien Holder, Plate Cancelation Receipt  or new Registration.
  • Returned Vehicle (Lemon Law) – Letter from Dealer, Plate Cancellation Receipt or New Registration.