Excise Tax Abatement - When Are You Entitled To It?Tax abatement is available under various heads. One of these heads is excise tax abatement. There are various aspects of excise tax abatement. These various aspects form the scope of this article. Two categories of excise tax abatement are available. One is motor vehicle excise tax abatement and the other is boat excise tax abatement. Motor vehicle excise tax abatement: To receive this, you need to always either cancel or transfer your motor vehicle license plate registration, after you have sold your vehicle or you no longer have a vehicle. As long as your motor vehicle license plate is displayed as active in your name in the Registry of Motor Vehicles, you will continue to receive an excise tax bill. Excise tax abatement is available to you if you receive an excise tax bill for the period in which either of the following conditions is applicable. One condition is if you have sold or traded the vehicle. In this case, you will need to provide a copy of the sales contract drawn up by the dealer concerned or the sales bill copy. Another condition is if your vehicle was repossessed or junked. In this case, you will need to either provide a copy of the letter from the finance company concerned in which the date when the vehicle was taken is mentioned or a copy of the receipt from the junk yard. Another condition is if the vehicle is treated as a total loss. In this case, you will need to provide a letter from your insurance company in which the accident date is mentioned and that they have deemed the vehicle as a total loss. Another condition is if the vehicle has been stolen. In this case, you will need to provide a letter from your insurance company in which the claim settlement date is mentioned. Another condition is if the vehicle has been registered in another state. In this case, you will need to provide a copy of the Out of State Registration document. Another condition is if the vehicle has been registered in another city in the same state. A fact of note is that motor vehicle excise tax is due in the city or town in which a vehicle is primarily garaged on January 01st of the year concerned. In this case, if you made a move prior to January 01st of the year concerned, you will need to provide a copy of your current registration in which your current address is mentioned. Applications for excise tax abatement must be received by the city or town Assessor by December 31st of the year after the excise tax year. Excise tax abatement cannot be provided thereafter. A motor vehicle excise bill must be paid within time in full even if excise tax abatement is due on it. In case, the excise tax abatement is deemed as due by authorities, the tax will be refunded/reduced. |