Valuation figures are the manufacturers' list price for vehicles in their year of manufacture (MSRP). Present market value, price paid, and/or condition are not considered for excise tax purposes. The excise tax law (MGL C60A, §1) establishes its own formula for valuation for state tax purposes whereby only the manufacturer's list price and the age of the motor vehicle are considered. Various percentages of the manufacturer's list price are applied.
The percentages are as follows:
- In the year preceding the designated year of manufacture (brand new car released before model year) - 50%
- In the designated 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%