Boat Excise Tax

A Summary of Boat Excise Tax Which Became Effective July 1, 1979

To Whom It Applies

Ships and vessels, except those used in or designed for use in carrying trade or commercial fishing, shall be taxed to the owner as of July 1 in the town where it is habitually moored or docked, otherwise where it is principally situated during the calendar year.

Type of Vessel

"Vessel", includes every description of watercraft, including documented boats and ships, used or capable of being used as a means of transportation on water, and includes all equipment, including mode of power, and furnishings that are normally required aboard the vessel during accomplishment of the functions for which the vessel is being utilized.

Vessel Location

"Habitually moored or docked", shall mean the place where the owner has usual mooring or dockage for the summer season.

"Principally situated", shall mean for a registered ship or vessel where it is registered, and for a non-registered ship or vessel, whether documented or not, the city or town in Massachusetts where it is principally located during the calendar year.

The Tax

Except as hereinafter provided there shall be assessed and levied by each city and town in each fiscal year on every vessel, and its equipment, for the privilege of using the waterways of the commonwealth, an excise measured by the value thereof, as hereinafter defined and determined, at the rate of ten dollars per thousand of valuation.

How Tax Works

Any person who owns such a vessel on July first shall annually, on or before August first, make a return on oath to the assessors of the city or town where such vessel is habitually moored or docked, or in the case of a vessel which has no mooring or docking space, where said vessel is principally situated, setting forth the vessel's registration or documentation number, if any, an adequate description, as well as the owner's estimate of the fair cash value, of said vessel and any engine or motor used to propel said vessel, as of the next preceding July first; and the place of habitual mooring or docking or other principal location of said vessel. If boat is transferred tax may be pro-rated.

Value shall be fair cash value but not in excess of:

L O A

(Excluding Bowsprit & Boomkins)

Under 4 Years Old

4-6 Years Old

7 Years or More

Under 16'

$ 1,000

$ 700

$ 400

16' but less than 17.5'

1,500

1,000

800

17.5' but less than 20'

3,000

2,000

1,500

20' but less than 22.5'

5,000

3,300

2,500

22.5' but less than 25'

7,500

5,000

3,800

25' but less than 27.5'

10,500

7,000

5,300

27.5' but less than 30'

14,000

9,300

7,000

30' but less than 35'

18,500

12,300

9,300

35' but less than 40'

24,000

16,000

12,000

40' but less than 50'

31,500

21,000

15,800

50' but less than 60'

41,000

27,300

20,500

60' or over

50,000

33,000

24,800

Excise shall not apply to vessels of a value of $1,000.00 or less.

Failure to Comply

If failure to file by August 1st deadline, but owner files by October 31st, tax may be increased by 50%.

Where Tax Goes

All sums received from the excise imposed under this chapter shall be paid into the treasury of the city or town and fifty percent of said excise shall be credited to the municipal waterways improvement and maintenance fund, UNLIKE the previous personal property tax.

The above is a summary provided for your convenience by the Massachusetts Marine Trade Association. For more exact information see Chapter 40, 59, & 60B of the General Laws (as amended by Chapter 581 of the Acts of 1978).