Full FAQ Details

Once the M.S.R.P. has been established for a vehicle, I am interested in purchasing; how can I determine how much I will have to pay in excise tax?

Answer

The following example may help you to determine the annual excise on a new or used car. In our example we are assuming a brand new vehicle. Our new vehicle is a model year 2011 which has an original manufacturer’s list price of $20,000. We will assume our model year 2011 vehicle is first registered in during calendar year 2010. Calendar year 2010 will be the first year of taxation for our new vehicle.

The valuation depreciation schedule is as follows:

2010 50% of the M.S.R.P = $10,000 (valuation)

2011 90% of the M.S.R.P. = $18,000 (valuation)

2012 60% of the M.S.R.P. = $12,000 (valuation)

2013 40% of the M.S.R.P. = $8,000 (valuation)

2014 25% of the M.S.R.P. = $5,000 (valuation)

2015 10% of the M.S.R.P. = $2,000 (valuation)

All succeeding years will be calculated at the minimum value of 10%. The rate for excise tax is $25.00/$1,000 of valuation. The excise for calendar year 2010 will be issued prorated based on the month of registration through the end of the calendar year.

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