Calculating Assessments – Motor Vehicle Excise Taxes

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 manufacture90
2nd year60
3rd year40
4th year25
5th and succeeding years10

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.

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