Motor Vehicle Excise Tax

Excise Tax Abatement Application (PDF)

Motor Vehicle Excise Tax is assessed on a calendar year basis (January through December). The valuation of the vehicle is determined by the Department of Motor Vehicles using the manufacturer's recommended retail price when new, multiplied by the applicable percentage:

• In the year preceding the year of manufacture - 50%
• In the year of manufacture - 90%
• In the second year - 60%
• In the third year - 40%
• In the fourth year - 25%
• In the fifth and succeeding years - 10%

The excise tax rate is $25 per thousand of valuation. Excise taxes are prorated monthly. The annual excise due on a vehicle registered after January 1 will be reduced by one-twelfth of the full year's excise for every month before the month the vehicle was registered. The minimum an excise bill may be is $5.

Motor Vehicle Excise Tax Abatements

Abatements are available if, during a calendar year ownership of a motor vehicle is transferred by sale or otherwise and the registration is cancelled or transferred to another car. Both actions are necessary to qualify for an abatement. Abatements may be requested up to three years following the year to which the excise relates.

Proof of ownership transfer and registration cancellation or transfer will be requested. The minimum an abatement may be is $5.

HEROES Act - Motor Vehicle Excise Exemptions for Disabled Veterans

The hero Act has changed how eligibility is determined for motor vehicle exemptions for disabled veterans. Under this Act, eligibility will be based on a disability determination by the U.S. Department of Veterans Affairs. To qualify for the exemptions, veterans need to submit a Letter of Determination from the VA, confirming that they have a 100% disability rating or are deemed unemployable due to their service-connected disability.

This exemption may only be applied to one vehicle registered to the Veteran.

For more information, call the Assessor's office: 508-473-2738.