The excise is based on the value of the motor vehicle as determined by the Commissioner of Revenue upon certain percentages of the manufacturer's list price (MSRP) in the year of manufacture.
The excise valuation is not based on the actual purchase price or "book value" of the vehicle. The percentages set forth in the statutory depreciation schedule that are applied to the manufacturer's list price are as follows:
- In the year preceding the designated 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%
For examples and more information about the computation of a motor vehicle excise, see: Calculation of the Excise (PDF).