Motor carrier taxes - Massachusetts

Property/Ad valorem taxes

Real and personal property is subject to tax in the Commonwealth of Massachusetts. Motor vehicles and trailers are exempt from the property tax, but are instead subject to a Massachusetts Motor Vehicle Excise Tax. That tax applies to vehicles of residents or corporations with principal places of business in Massachusetts. The assessment is based on value, as determined by the Commissioner of Revenue.

The excise rate is $25 per $1,000 of the vehicle's value. The vehicle's value is based on a percentage of the manufacturer's list price in the year of manufacture. Any vehicle registered for less than a full calendar year is subject to a fractional portion of the tax.

Sales & use taxes

A sales tax is imposed on the gross receipts from sales at retail, including leases and rentals, in Massachusetts. Sales tax does not apply to sales of transportation services.

A use tax is imposed on the storage, use or consumption of tangible personal property, including transfer of possession by lease/rental. A use tax will not be charged if the sale is already subject to the sales tax in Massachusetts or if sales tax has already been paid to another state on the purchase, provided that the other state grants reciprocity to Massachusetts and the tax charged was at least as much as would be due in the Commonwealth. Otherwise, the difference must be paid to Massachusetts.

The owner of a motor vehicle or trailer that doesn't have to be registered with Massachusetts must still file a Motor Vehicle Certificate of Payment of Sales or Use Tax (Form ST-7R) and pay the full sales tax on or before the 20th day of the month following the month the vehicle was purchased, transferred, or first used.