Calculating Motor Vehicle Excise Taxes
Motor vehicle excise is taxed on the calendar year. It is an assessment in lieu of a personal property tax. The excise due is calculated by multiplying the value of the vehicle by the motor vehicle tax rate. The tax rate is fixed at $25 per one thousand dollars of value. The value of a vehicle is determined as a percentage of the manufacturer’s suggested retail price for that vehicle based on the year of manufacture. Only the manufacturer’s list price and the age of the motor vehicle are considered.
| Applicable Percentage from M.G.L. 60A§1 | % of MSRP |
|---|---|
| Year preceding year of manufacture (i.e. – 2005 model in 2004) | 50 |
| Year of manufacture | 90 |
| 2nd year | 60 |
| 3rd year | 40 |
| 4th year | 25 |
| 5th and succeeding years | 10 |
Preceding model year (2005 model in 2004) ► $30,000 x 50% = $15,000 x .025 = $375
Owners of vehicles older than five years old should have a fixed excise tax bill for each succeeding year of ownership, and it should be based on a value which is no less than 10% of the manufacturer’s list price in the year of manufacture for the vehicle being taxed.