Excise Tax Bills
Every Section 5 registrant receives an excise tax bill. The formula used for the assessment is based upon the provisions of Massachusetts General Law, Chapter 60A, Section 1.
Repair, Owner-Contractor, and Farmers Excise Information
A Repair, Owner-Contractor or Farmer has the ability to attach its Section 5 plate to a vehicle that has been identified from a list of Compliance decals. As stated earlier, the Compliance decal is issued to a specific vehicle only when the RMV is satisfied that the sale tax and vehicle title requirements are met. The compliance decal information is used to generate the excise tax bill information. The RMV sends an excise report to the town in mid April for these Section 5 registrants. The bills are payable directly to the city or town.
Dealer Excise Tax Information
A separate excise tax law applies to "dealers." A motor vehicle dealer to whom a Section 5 registration has been issued shall, for the privilege of such registration, pay to the collector of taxes for the city or town in which such dealership is licensed, a special excise in the amount of $100.00 for each registration plate. The RMV sends a report to the town in late May for these Section 5 registrants. The bills are payable directly to the city or town.
Section 5 Registration Non-Renew Status
To ensure that all registrants comply with the non-renew law, the Section 5 Division can administratively place Section 5 registrations in non-renew status when this division is notified by a tax collector that a Section 5 registrant has overdue unpaid excise taxes.
The following events place a Section 5 registration in non-renew status:
- The tax collector in the city/town where the registration holder's business is located, completes a Tax Collector's Notice of Excise Tax Delinquency by General Registration Holder form.
- The tax collector mails the completed form, with a letter on official stationary of the municipality or the tax collector, to the RMV's Section 5 Division.
- The Section 5 Division places the registration in an administrative non-renew status and forwards a copy of the form to the registration holder notifying him / her of the non-renew status.
- The registration holder also is sent a letter notifying him/her of:
- The amount owed to the tax collector
- The amount owed to the Registry
- How and where the registration holder can make this payment
Note: A Section 5 registrant who fails to pay a required excise tax may be placed in non-renewal status by the Registrar. For additional information regarding Excise Tax, including possible exemptions, please see: www.mass.gov/legis/laws/mgl/60a-1.htm