Excise tax in Massachusetts is a levy imposed on particular items or actions, usually on the level of manufacture or sale. The strategy for figuring out this tax varies relying on the merchandise or exercise being taxed. For example, motorized vehicle excise is predicated on the autos assessed worth, whereas gasoline excise is often calculated per gallon offered. As an example, the annual motorized vehicle excise is computed utilizing the assessed worth of the car, multiplied by a fee of $25 per thousand {dollars} of valuation.
This tax serves as a major income supply for the Commonwealth and its municipalities. The collected funds assist important authorities companies and infrastructure tasks. Traditionally, excise taxes have been used to control consumption patterns, discourage particular behaviors (like tobacco use), and fund explicit state initiatives. The secure income stream offered by these taxes permits extra predictable budgeting and monetary planning.
