Why Massachusetts Impose an Excise Tax on Motor Vehicles?
The month of April has arrived in Massachusetts. It is time for those annual rites of passage, such as watching the flowers bloom in the Public Garden, cheering on marathon runners, and paying the dreaded ‘T’ word bill. But why does Massachusetts impose an excise tax on motor vehicles?
“Just paid the excise tax, due at the end of March,” stated one parkgoer.
Another person said, “That excise tax is brutal.”
Currently, 27 states, including Massachusetts, charge their inhabitants a fee simply for owning a vehicle. In its most basic form, the tax is calculated as $25 for every $1,000 of valuation, although there are other factors to take into account.
Eileen McAnenny, who works for the independent local think tank known as the Pioneer Institute, explains why we have it, but other places don’t.
Eileen McAnenny said:
“Massachusetts tends to provide more social services and other services and have higher cost than many other states. So they look for a variety of sources of revenue and more sources of tax revenue than many other states”.
Although a state tax, it is collected locally by cities and towns. It is a common misconception that it is utilized for building roads and streets, transit systems, or other types of infrastructure; however, this is not the case.
Because the money is placed in the general fund, each municipality is free to decide how best to put it to use.
“It’s a source of revenue for cities and towns, and next to real property tax, it’s probably their largest source of income. It’s a headache that’s not going away because cities and towns rely on it to provide services. I do think they’d replace it with some other form of taxation.”
This has been the case for some years. In 1928, when the Ford Model-A was the most popular car in the United States, the tax was initially levied and collected for the first time.
Since that time, the state has come to depend on it practically to the same extent that we depend on cars, so you shouldn’t bank on it disappearing anytime soon.
We will continue our search till we discover something new. Until then, here are what may be considered some of the best articles to read on Massachusetts:
- Massive Sports Betting Surge: Over Half a Billion Dollars Bet on Sports in Massachusetts During March
- Revolutionary Announcement: Democrat Robert F. Kennedy Jr. Launches Presidential Bid in Boston, Massachusetts!
- Breaking News: South Korean President Tour to Massachusetts Next Week!
When comparing the amount of revenue collected by each city and town in the state over the previous year, Boston came in with a total of about $61,000,000.
The amount received by Worcester was eighteen million dollars; this is more than the total budget of the Worcester Public Library and other departments, indicating that there is a benefit in this.
Have a look at the tweet linked below by CBS Boston News official tweet for more info:
Question Everything: Why does Massachusetts have a motor vehicle excise tax?https://t.co/d4HORLeiB6
— WBZ | CBS Boston News (@wbz) April 18, 2023
There are additional exceptions to the tax’s application and reductions available. You can also visit the official website of the Massachusetts government for a detailed analysis of the taxation system of the county.
You can, of course, choose to ignore it entirely; however, doing so will probably involve another T word: the MBTA.
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