Computation

• The local community that levies the tax calculates the tax at a rate of $25 per $1,000 that the car is worth. In other words, a vehicle worth $10,000 would carry an excise tax of $250 or ten (one thousandths) times 25. The government assesses the vehicle's value through a data bank based on multiple sources, including the National Automobile Association Official Used Car Guide. The government does not consider the price the taxpayer paid or the present market value of the vehicle, although the motor vehicle's age and list price are considered.
  
  

Collection

• The Registry of Motor Vehicles prepares excise tax bills and sends them to the city assessors. The city and town assessors distribute them to local tax collectors who issue them and collect payments. The tax collectors put the money collected into the municipal treasury. Taxpayers must pay the bill in full. Local tax collectors cannot accept partial payments.
  
  

Prorating

• If a taxpayer registers her motor vehicle after the start of the calendar year, the government will prorate the excise tax based on the number of months. So, if a taxpayer purchases and registers a vehicle in July, the excise tax imposed will only account for the months of July through December.
  
  

Payment

• The taxpayer must pay the motor vehicle excise tax within 30 days after the local tax collector issues the bill. Even if the taxpayer does not receive the bill, they must pay the tax. The government puts the responsibility on the taxpayer to contact the local tax assessor or collector if the taxpayer does not receive a bill. Interest and penalties can accrue in the event of nonpayment.
  
  

Penalty

• If the taxpayer fails to pay the tax within 30 days, the local tax collector sends a demand letter with an additional $30 late fee imposed. Interest also accrues on the bill at 12 percent per year. After receiving the demand letter, if the bill goes unpaid for another 14 days then the local tax collector may issue a warrant, which includes an additional $10 late fee. Additional fees of $12 and $17 accrue if the bill continues to go unpaid.
  
  

Warning

• Consult a qualified attorney, licensed to practice in Massachusetts, or an accountant to determine your obligation with regard to Massachusetts motor vehicle excise tax laws, which are subject to change.