Vehicle excise tax, servicemember exemptions

  • Published
  • By Capt. Rich Ghazal
  • 66th Air Base Group Judge Advocate Office
HANSCOM AIR FORCE BASE, Mass. --  Under Massachusetts law, all residents of the Commonwealth who own and register a motor vehicle must pay an annual motor vehicle excise tax, levied by the city or town in which the vehicle is principally garaged.

Massachusetts law provides for service-related exemptions for vehicles owned by disabled veterans and former prisoners of war, as well as their surviving spouses, until that spouse remarries.

Under the Soldier and Sailors Civil Relief Act, or SCRA, and as incorporated into Massachusetts law, the exemption is also available to military members who are domiciled outside of Massachusetts, but who reside and register personal (non-business) auto vehicles in Massachusetts pursuant to military orders.

This exemption also extends to any vehicle owned by the member's spouse, if the spouse is domiciled in the same state as the servicemember and is also present in Massachusetts pursuant to the member's military orders.

If a servicemember or spouse owns multiple vehicles, the exemption may apply to all vehicles that are registered for personal non-business use.

Additionally, active duty servicemembers who are domiciled residents of Massachusetts may still qualify for exemption if they have been deployed, or stationed overseas, for a period of at least 45 days. In this circumstance, the exemption is limited to one vehicle, owned by the member, or jointly with the spouse, in the calendar year during which the deployment took place.

Leased vehicles are not eligible for this exemption; however, in some cases, the company from which the vehicle is leased will pay the tax on behalf of the lessor.

For eligibility, the servicemember must present a letter from his military command to the local assessor stating the member's non-resident status and military stationed status. After approval by the town or city assessor, no further action is required to maintain the exemption in any subsequent year.

For further information on motor vehicle excise tax, contact the Base Legal Office at 781-225-1410.