How Excise Tax is Calculated
The Value
Excise Tax is assessed at a rate of $25.00 per thousand dollars of taxable value. The value of a motor vehicle is determined by the Commissioner of Revenue, based on the Manufacturer’s Suggested Retail Price (MSRP). Purchase price, condition and market value are not considered in determining value. Percentages of the MSRP are determined as follows:
In the year prior to model year: | 50% |
In the year of manufacture: | 90% |
Second Year: | 60% |
Third Year: | 40% |
Fourth Year: | 25% |
Fifth year and later: | 10% |
Abatements
An abatement may be filed in the following cases:
- When the motor vehicle is sold or traded for another vehicle.
- When a registrant moves out of state.
- When a motor vehicle is overvalued.
- When the Vehicle is stolen.