Excise Tax
HOW MUCH IS THE EXCISE TAX?
The amount of tax you pay depends on two things:
1. The age of the vehicle
2. MSRP (manufacturer’s suggested retail price)
HOW IS THE EXCISE TAX CALCULATED?
Excise Tax is calculated by multiplying the MSRP by the mil rate as shown to the right. The rates drop back on January 1st each year.
For example, a 4-year-old car with an MSRP of $22,500 would pay $225.00
($22,500 X .0100 = $225)
WHERE CAN A TOWN GET THE MSRP?
There are several resources for the MSRP that will provide information on the retail price of a vehicle. New vehicles must have a window sticker that will be used.
For used cars, one can use the NADA Guide, The New Car Cost Guide, the Automobile Red Book and the Automobile Blue Book. Many current Town Offices use a program that automatically calculates the excise tax after gathering information through questions to the customer and entering that data about the vehicle into the program.