Motor Vehicle Computation

Figures are the manufacturers’ list prices for vehicles in their year of manufacture. Present market value, price paid, or condition are not considered for excise tax purposes. The excise tax law (M.G.L. c.60A, s.1) establishes its own formula for valuation for state tax purposes whereby only the manufacturer’s list price and the age of the motor vehicle are considered. The formula is as follows:
In the year preceding the model year
(brand new car released before model year)
50%
In the model year
90%
In the second year
60%
In the third year
40%
In the fourth year
25%
In the fifth and succeeding years
10%
Every motor vehicle owner must pay an excise tax based on valuation of at least ten percent of the manufacturer’s list price; thus, owners of vehicles older than five years should have a fixed excise tax bill for succeeding years of ownership.
Please contact the Assessors Office if you have any questions.