FAQ

What Is Motor Vehicle Excise Tax? (Solved)

Motor vehicle excise tax is an annual tax for the privilege of registering a motor vehicle or trailer. The amount of excise tax due is calculated by multiplying the value of the vehicle by the tax rate ($25.00 per thousand dollars of value).

What does your vehicle excise tax get used for?

  • When you pay your car’s excise tax, it goes into a general fund that is then used to pay for many other things in your town or city. However, western Massachusetts residents told 22News they’d like to see their town’s excise taxes going towards their roads.

What is vehicle excise tax used for?

When you pay your car’s excise tax, it goes into a general fund that is then used to pay for many other things in your town or city.

What is excise tax Massachusetts on car?

The excise rate is $25 per $1,000 of your vehicle’s value. It is charged for a full calendar year and billed by the community where the vehicle is usually garaged. If your vehicle is registered in Massachusetts but garaged outside of Massachusetts, the Commissioner of Revenue will bill the excise.

What is the purpose of excise tax in Massachusetts?

Like a property tax, which pays for services in the city or town in which the property is located, revenue from the Motor Vehicle Excise Tax is used by Massachusetts municipalities to provide public services.

Which defines an excise tax?

Excise Tax is a form of indirect tax levied on specific goods. These goods are typically those that are harmful to human health or the environment. The intent of Excise Tax is to reduce consumption of these commodities while also raising revenues for the government that can be spent on public services.

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Why do we pay vehicle tax?

What is car tax? Drivers must buy car tax every year. The money this raises is paid directly into the central government fund, which is used for projects that benefit everyone – including road work and maintenance.

How do I get a refund of my road tax?

For a road tax refund to be claimed, the vehicle has to be registered in the new state first in case of a transfer. The list of relevant documents to be submitted at the RTO office to claim a road tax refund are: A copy of either the new or old smart card in addition to a notarized copy of the same.

How do I pay my excise tax in Massachusetts?

You can pay your excise tax through our online payment system. You need to enter your last name and license plate number to find your bill.

Does Ma have excise tax?

Excise tax bills are due annually for every vehicle owned and registered in Massachusetts. Excise tax bills are prepared by the Registry of Motor Vehicles and billed by the local community where the vehicle is garaged. The minimum excise tax bill is $5. The excise tax rate is $25 per $1,000 of assessed value.

What is the difference between an excise tax and a sales tax?

Sales tax applies to almost anything you purchase while excise tax only applies to specific goods and services. Sales tax is typically applied as a percentage of the sales price while excise tax is usually applied at a per unit rate.

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Do you have to pay excise tax on a leased vehicle in Massachusetts?

Leased cars are still subject to excise tax. However, whose obligation for payment is determined by any terms in the original leasing contract. If not addressed, the driver should inquire of the leasing company.

How do I pay overdue excise tax in Massachusetts?

How do I pay for overdue excise taxes that have been marked at the Registry of Motor Vehicles for non-renewal? Payment at this point must be made through our Deputy Collector Kelley & Ryan Associates (508) 473-9660. For your convenience payment can be made online through their website www.kelleyryan.com.

Who will pay excise taxes?

Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly. Excise taxes can be ad valorem (paid by percentage) or specific (cost charged by unit).

What are three types of excise taxes?

TYPES OF EXCISE TAX:

  • Specific Tax – refers to the excise tax imposed which is based on weight or volume capacity or any other physical unit of measurement.
  • Ad Valorem Tax – refers to the excise tax which is based on selling price or other specified value of the goods/articles.

What is bad about excise tax?

EXCISE TAXES REDUCE CONSUMPTION AND IMPROVE HEALTH. Excise taxes generally result in higher prices for consumers, reducing demand for taxed products.

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