Excise Tax Valuation

Assessed Valuation

The formula for excise tax valuation 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 10% 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. Even though an owner may have applied for an abatement that may reduce an excise tax bill, no excise shall be less than $5.