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In MA, the excise is based on the Original vehicle sticker price.
One of those additional slaps to the saab pricing vs givebacks. So even if you and almost everyone else got better than 6k off, you get taxed on the full amount, NOT what you paid.
My opinion is that it would be better for saab to price accordingly, because I think the sticker's really scare off people who would otherwise buy, and it also causes people to feel that the depreciation for saab's is out of line, since they base their original numbers on sticker instead of prices paid.
<snipped from the state website:
http://www.sec.state.ma.us/cis/cisexc/excidx.htm
snip: Figures are the manufacturers’ list prices for vehicles in their year of manufacture. Present market value, price paid, or condition are not considered for excise tax purposes. The excise tax law (M.G.L. c.60A, s.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. The formula is 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%
Every motor vehicle owner must pay an excise tax based on valuation of at least ten percent of the manufacturer’s list price; thus, owners of vehicles older than five years should have a fixed excise tax bill for succeeding years of ownership. Even though an owner may have applied for an abatement which may reduce an excise tax bill, no excise shall be less than $5.
Years ago, I had three older vehicles on the road. I bought a new motorcycle for $3400; the first new vehicle I've ever had. Excise tax almost made me sick, as it was more than my other 3 vehicles combined (oh for the '69 skylark convertable which had stickered new for ~$3400 and was calculated to be worth $340!
posted by 68.163.156...
, Mon, 4 Oct 2004 14:06:15
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