Massachusetts Excise Tax
Motor Vehicle Excise tax revenue goes to a community's general fund for the support of the general operating budget. Use of this revenue is unrestricted.
It is unfortunate about the deplorable condition of roads in many communities in Massachusetts. The increase in traffic, heavier vehicles, and harsh weather conditions have undoubtedly contributed to the deterioration of the roads. While shock absorbers can help reduce discomfort for passengers and drivers, the damage to vehicles remains a significant concern.
Regarding the misconception about excise tax, it is important to clarify that the revenue collected from excise tax in local cities and towns does not necessarily go directly towards road maintenance. Instead, it typically goes into a general fund that can be used for various community needs as determined by the respective communities.
Given the financial constraints faced by many communities, it is possible that the demands for other pressing matters may be pulling from the general fund, which could impact the allocation of resources for road maintenance.
The information below is about the number of registered autos and trucks in the Town of Marblehead, MA, along with the total excise tax revenue collected between 2010 and 2022, shows an increase of $1,052,347 or 39% since 2010. Additionally, the average excise tax per vehicle has increased from $134 to $179, representing a $45 or 34% increase.
It is important for communities to prioritize infrastructure maintenance and explore potential solutions to address the road conditions. This may involve advocating for increased funding or exploring alternative sources of revenue to ensure the safety and quality of the roads for all residents and commuters.