Short version - Massachusetts charges an excise tax on vehicles. My excise tax is being calculated using a base value of $35k when my MSRP was closer to $65k. All my Ford trucks have been like this. Wondering if any other Mass. residents have noticed this. Don't want to buy a Platty and have my excise tax go through the roof.

Long version
Massachusetts charges an excise tax on vehicles according to the formula: Excise Tax = MSRP x Depreciation Rate x $25 / 1,000

The depreciation rate is reduced each year (90%, 60%, 40%, 25%, 10%). I bought my 2019 F250 Lariat at an MSRP of $64,980, but my excise tax is nowhere near what it would be if I do the calculation based on MSRP. In fact, when I calculate the base value used, it comes out to $35,166.67. I've noticed this on every new Ford truck I've ever owned. They never seem to use the full MSRP to base the excise tax off of. Any other mass holes notice the same thing on their excise tax bills?

I shouldn't look a gift horse in the mouth, but I'm wondering if my next new truck will be similar or if I'm going to get whacked with a huge bill!

Year...........................Deprec....Calc Amt.......Actual Paid
Year of manufacturer.....90%......1,462.05...........791.2 5
1 year old...................... 60%........974.70............527.50
2 years old.....................40%........649.80......... ...351.67
3 years old.....................25%........406.13......... ...219.79
4 years old.....................10%........162.45......... .....87.92
MSRP vs. Calculated Base......64,980.00.......35,166.67

 

MSRP is MSRP, what you paid for the truck is a different value. I don't know Massachusetts excise tax rules completely, but for new vehicles, it goes off the MSRP not the purchase price. Not sure how the MSRP is determined for a used vehicles where the buyer and seller don't have anything says what the MSRP was.

 

I do know the Mass. excise tax rules, and they use MSRP. I laid out the formula. I also know what I paid for my truck, but that's irrelevant to this discussion. I simply don't understand why Ford trucks (and possibly others...I've never owned one) cost so much less than they should. For example, my wife owns a Honda Pilot, and the excise tax amount is exactly what I calculated based off MSRP. I was hoping someone had some insights.

 

I've given up trying to figure out the various mathematical ways they try to screw us. Good luck.

 

I'm guessing the dealer messed up when filling out the paperwork (seems like the most likely). I am guessing they use the same same form/spread sheet/calculator/etc for every sale and forgot the update the MSRP. Or is there something in the Mass excise rules that changes the calculation for commercial vehicles or vehicles over a certain weight or GVWR? I looked quickly but didn't see anything that would explain it either.

One other thought is that depending on the time of year the vehicle is purchased and the model year of the vehicle they prorated it for a portion of the first year of ownership and then the next calendar year is was as two different rates (i don't see how that would be right either).

Did you trade in a truck and they go based on the difference of the new truck MSRP and the value of the trade in? (again this doesn't fit with the law)

Are you a blind POW veteran or service member farmer who's also a charity?

Consider yourself lucky. the first year really hurts with sales tax and the excise

 

You forget 50% the year following manufacture date... as in 2021 bought in 2020
it's $25 per $1000 msrp roughly
example of calculating :Preceding model year (2005 model in 2004) ► $30,000 x 50% = $15,000 x .025 = $375

You will be prorated during the year based on when you bought the vehicle.
so for my 2020 I just got would be about $1192 but since I just got it, it'll be roughly $300 for 2020
for 2021 it should be $795.
Mine pretty much are almost spot on.... speaking of which I need to pay mine soon as I want to get it done with.

 

Just 1 more reason I would never move back to Taxachusetts lol.

 

wonder if you figured this out.
for 2020 your tax would be about $750 +/-
do you get anykind of discount for what someone listed above ?

 

No, I found nothing documented that addresses why none of my Ford trucks have used some value far less than MSRP to calculate the excise tax. And none of the responses on here addressed it either.

 

Maybe , some how, they are using the wrong msrp ?
sure wish I had that issue lol

 

Do they possibly use actual build year? Like was you 2019 actually built in 2018 so it’s on the second year?

 

No, they actually have it at 50% of msrp for the ' year preceeding manufacturer year'

 

The base price of a 2020 superduty XL is $34,035. Wonder if they're using that. The tax rates should be based on the VIN and not a base rate.

 

After reading this thread, I guess I won't bitch about a $230 2 year registration in NY for my F 250. And that's with personalized plates and opting for the new design license plates, which added a few bucks more. I could've retained my current plates and saved $20 or $30.

 

OH, don't worry, they are just getting your money somewhere else.. No matter how it feels, it costs "X" to run the .gov so they get at least "X".. always. The real trick is to find a place to live and work where the "X" is as small as possible.