Do You Have to Pay Excise Tax on a Leased Car

A collector is not required to accept partial payment of an excise duty invoice on motor vehicles. The acceptance of partial payments is exclusively at the discretion of the collector. You do not have the legal right to pay an excise tax in part, as opposed to a property tax or improvement. The minimum excise tax on motor vehicles is USD 5. If your calculated excise tax is less than $5, you will be taxed at $5. Therefore, you cannot have another exemption for another vehicle that you purchased or leased later in the year if you continue to own or lease the first vehicle for the rest of the year. Next, you need to make sure that your lease is actually based on that number. Take in writing that the total initial rental value is a certain amount. It`s important to keep this amount as low as possible, and certainly the same price you thought you were paying for the car. The lower the price of the car, the lower your monthly payments will be. Keep in mind that any manufacturer`s discounts that would apply to the purchase of the car also apply to the initial cost of the lease. The amount of the reduction granted to taxpayers who have: Under federal law, the following military personnel (and their spouses) are exempt from motor vehicle tax on all vehicles they own as long as they are not used for a business or business: However, there are timelines for some of the ways in which tax collectors can enforce excise duty. For example, notices of non-renewal of the taxpayer`s licence and registration must be submitted to the RMV within 2 years of sending the original excise duty invoice.

If the collector accepts partial payments for a particular excise invoice for motor vehicles, you still cannot order that it apply to excise duty first. Any partial payment received must be applied in this order: you must pay excise duty within 30 days of receipt of the invoice. If you do not pay a motor vehicle tax in full by the due date, you will also have to pay: If you register your motor vehicle or trailer, you will have to pay a motor vehicle and trailer tax. Get the ins and outs when you pay the excise tax on cars to your city or town hall. This guide is not designed to answer all the questions that arise or to address complex problems in detail. Nothing in this document replaces, modifies, or otherwise modifies any provision of the general laws of Massachusetts, regulations of the Massachusetts Department of Revenue, decisions of the Department, or other sources of law. Updated guide: May 6, 2020. If you transferred ownership and registration in the same month, the discount applies to the month you transferred and the remaining months of the calendar year.

For example, you sell a motor vehicle in July and also cancel the registration of that vehicle in the same month. You will receive a discount for August to December (5/12 of the excise duty). If you transferred the registration to another vehicle instead of cancelling the registration, you will receive a discount for July to December (6/12 of the excise duty). You can reduce the excise duty you pay by submitting a reduction request. There are two applications to choose from: if you have owned a motor vehicle that has been registered for less than a full calendar year, you will pay excise duty based on the entire month in which you registered that vehicle, as well as for the remaining months of the year. For example, a vehicle registered on April 9 will be subject to excise duty from April to December. If you own a registered motor vehicle or trailer, you will have to pay a tax each year called the motor vehicle and trailer tax. When you receive your car excise invoice, you will also receive instructions on how to pay it. There is no limitation period for excise duty invoices for motor vehicles. You are personally responsible for the excise duty until it is refunded. Anyway later. The filing of an application does not mean that the collection of excise duty has ceased.

Even if you did not apply on time, the assessors can still grant you an exemption, but only if excise duty is still pending. Action on late applications is entirely at the discretion of the examiners, which means you cannot contact a local or state council, agency or official. .