Motor Vehicle Excise Tax Abatement Process

How can I apply for an abatement?

M.G.L. c.60A:2 as amended by Chapter 262, sections 10-11, of the Acts of 2004

If you want to apply for an adjustment of your excise bill, contact your local Board of Assessors for an abatement application. However, we highly recommend that you pay the bill in full before seeking an abatement—although payment is not a precondition, you risk incurring late fees and penalties if the abatement is denied. If you pay the bill as assessed and later receive an abatement, you’ll receive a refund by mail.

State law requires that vehicle owners submit abatement applications to assessors within three years after the excise bill was due or one year after it was paid, whichever is later. Make sure to apply on time to avoid losing your appeal rights. While assessors sometimes act on late applications, the excise must still be outstanding, and you cannot appeal. If assessors decline to grant a discretionary abatement, however, you can pay the excise, apply for an abatement within one year of the payment date, and appeal the assessor’s decision on that application.

You can file for an abatement:

• If you believe the assessment is incorrect
• If your vehicle was stolen
• If you sold the vehicle during the relevant year and cancelled registration
• If you moved, registered the vehicle in another state, and cancelled the registration in Massachusetts
• If you did not renew the registration in Massachusetts

You won’t receive an abatement if you cancel your vehicle’s registration but still retain the vehicle, or if you move to another Massachusetts city/town within the same year. If you cancel registration, return the plate(s) to the RMV and obtain a return plate receipt. When an abatement is granted, excise bills are prorated by the month, so you’re still responsible for the excise accrued through the last registered month.

What can I do if an abatement is denied?

If assessors don’t act on an abatement application within three months (unless you agree in writing to an extension), the application is deemed denied. You would have no appeal rights to any state or local agency or official. However, you can still pay the excise and file for an abatement within one year of the payment date.

If your application for abatement is denied at the local level, you can appeal to the State Appellate Tax Board. If the State Appellate Tax Board grants an abatement because of overpayment, the city or town treasurer would issue a refund accompanied by 6% interest, calculated from the date of payment of the excise to the date the refund is paid. Interest would not apply if the abatement is granted by the Board of Assessors. No abatement can reduce a tax to less than $5, and no abatement of less than $5 will be granted.

By law, assessors have discretionary authority to abate all or a portion of excise taxes, interest, and charges beyond the deadline period. However, the excise tax must still be outstanding to give assessors jurisdiction. Assessors do not need to obtain authority to abate from the Commissioner of Revenue.

For further information please contact your local board of assessor’s office.