Model 3 Excise tax in MA

Model 3 Excise tax in MA

I have read the valuation is supposed to be for the base model. Does anyone know if this is accurate?

I have a Long Range, AWD with FSD. The RMV's valuation is supposed to be 90% of...? What valuations have you received?

Thanks for the help!

kevin_rf | 3 avril 2019

My 2019 MA excise was $840 .... whimper. (LR AWD RED 18" EAP FSD)

That reminds me, it's due this week...

hcdavis3 | 3 avril 2019

Oh joy. I don’t want to look at the mailbox for fear of seeing the bill.

mfrey | 3 avril 2019

I too am in MA and can not believe that we get taxed multiple times for a purchase. We already paid sales tax, but then get taxed over and over again. I find it criminal.

kevin_rf | 3 avril 2019

You could live in NY and pay even higher taxes. I won't say what my wife said to me when the excise bill came in. I might get me banned...

j.nichol | 4 avril 2019

$840 isn't bad! Compared to the $1100+ they are charging me :'(

They are basing it on an assumed value of $58,722.22, which is wrong no matter when they checked the MSRP. I just don't know *how* wrong.

jithesh | 4 avril 2019

I paid 778 last year when I picked up in June 2018
Then I again paid 890 in 2019

Hopefully it will go down next time.

kevin_rf | 4 avril 2019

Don't forget the valuation include deprecation.... Which factors in how long you have owned the car. I assume you paid something like $62k or more based on your options, which has now deprecated $58,722.22 after all the hand waving is done.

jhn | 4 avril 2019

Excise tax in MA is pretty easy to calculate. $25 for every $1000 of the car's assessed value.And the assessed value is 90% of the purchase price the first year, 60% the second year, 40% the third year, 25% the fourth year, 10% the fifth and every consecutive years.

j.nichol | 4 avril 2019

Yes, very easy to calculate but not so easy to understand where they are getting their valuation from (it's supposed to be the MSRP). Mine is incorrect.

j.nichol | 4 avril 2019

It didn't depreciate to $58,722.22 because I bought it for $58,700 this March including documentation and fees. And it hasn't appreciated either...

Some other MA Tesla owners have said their valuations were based on the MSRP prior to options. That would be super nice, but I'm not holding my breath. At the very least the valuation is 22.22 off. But if they eliminate the documentation and delivery fees then it will get better from there.

kevin_rf | 4 avril 2019

Your talking current year prorated (Month left in the year ( 12 - 3 ) March / 12 months in a year) * $25 * $58700 / 1000.0 = $1100.625 on my calculator.

We have a winner.... Next year will be cheaper.

j.nichol | 4 avril 2019

The excise bill shows the valuation as 90% since it's the first year. That works out to an underlying valuation of 58,722.22, which is an incorrect valuation. I'm not sure why you are showing my excise tax, which I already know.

I am trying to determine how other Tesla owners have had their valuations determined--NOT their actual excise tax, for which the rules are clearly shown online.

j.nichol | 4 avril 2019

Fyi, it's 12 - 2 since I purchased in March--they charge you for the full month of purchase.

sethfiermonti | 4 avril 2019

In NH, the long range is considered an option so I was taxed in my town at $35000

j.nichol | 4 avril 2019

@ sethfiermonti

That's awesome. I read some MA owners had something similar, but that was back in 2017 or so and given the MA requirement to send them the window sticker to change the valuation, I'm not very hopeful they will only charge me on the base model without options.

Still hoping some MA recent purchaser pops up and says they were able to get that lower valuation...and how they did it.

kevin_rf | 4 avril 2019

Let me try again....

Based on your numbers, they prorated the first year based on the purchase price.

Full year is $25 * $58700 / 1000.0 = $1467.50
You bought in march leaving 9 months left in the year (9 /12) = 0.75

Full year tax x 3/4 of a year, $1467.50 * 0.75 = $1100.625

That is your bill and perfectly matches both numbers you posted.

For instance I bought in September and ended up with a ~$400 excise tax in 2018 for a very similar vehicle ($59k, no FSD). Again because only 1/4 of the year was left.

crmedved | 4 avril 2019

Wow. My condolences to all of you who live in MA... that is a horrible amount of tax. I didn't know how good I have it in Delaware... here, it is just flat 4.25% of sale price and $40/year for registration :S

rdavis | 4 avril 2019

@mfrey | April 3, 2019
I too am in MA and can not believe that we get taxed multiple times for a purchase. We already paid sales tax, but then get taxed over and over again. I find it criminal.

You don't have to pay it... of course if you don't pay it you can only drive it on Private Property, which wouldn't be too much fun. ;) The tax is supposed to be for the ability to drive it on public roads and the $$$ are supposed to go to maintaining those roads. I don't have an issue in paying for that, but i doubt that the money is really spent there...

mfrey | 4 avril 2019

We already pay property taxes that is used for the town public works, education etc...
It is absurd.

rdavis | 4 avril 2019

@mfrey... vote'm out of office and get someone in there that will change the tax codes... ;)

kevin_rf | 4 avril 2019

@rdavis I am pretty sure the excise tax goes to the town's general fund to be used for the items on the town warrant that they argue over til all hours of evening at the annual town hall meeting. As far as I can tell, MA does not spend money on roads.

Funny, auto-correct wanted to use a more descriptive word for annual.... Which about describes your typical town hall.

kevin_rf | 4 avril 2019

As far as vote'm out, with an annual town hall, the only way to do it would be to make sure your neighbors that vote yes on every warrant item don't show up. Torches and pitchforks may work...

jithesh | 4 avril 2019

ok.. now i am confused. i actually never bothered to check the accuracy

if someone could clarify mine as well
so for my 50K RWD bought in June I paid 778. Shouldn't it be 725
but in 2nd year I paid 862 but should have been 750 correct ?

Does it changes with city also ?

kevin_rf | 4 avril 2019

It's a state constant...

If you own any motor vehicle that has been registered for less than a full calendar year, you will pay the excise based on the entire month when you registered that vehicle, as well as for the remaining months of the year. For example, a vehicle registered on April 9th will be billed an excise for April through December.

j.nichol | 4 avril 2019

@kevin_rf: I never told you the exact amount of the excise tax and no, it is not correct. Your calculations completely missed the point of my post and provided nothing but irrelevant (and partially inaccurate) info that I already know. MA charges for March - December if purchased in March, i.e., 10/12 months. Please don't try to 'explain' this again as your efforts are missing the point.

Once again, I am only looking for how owners' M3s have been *valued*--not how the tax is then calculated. My model was valued at 58,722.22, not 58,700, and while I know for certain that the first number is incorrect, I am hoping that the second will also prove to be overstated based on others valuations on their models in previous years.

j.nichol | 4 avril 2019

And to walk you through the actual math...

First year valuations are 90% of the MSRP. For me, that was $52,850, which is 90% of $58,722.22, the underlying valuation that is wrong by at least $22.22 and it is my hope that it is off by more, as some have said their valuations didn't include options (such as FSD).

The excise tax was then calculated at $25 * 52,850/1000 * 10/12 months = 1321.35 * 5/6 = $1,101.04.

But the question I am trying to answer is whether MA owners have found their valuations now include options or whether those valuations match the 'window sticker' price exactly, which includes even the documentation fees.

Idahorefugee | 5 avril 2019

Here are the 2 important takeaways from this comment:
1) You'll pay based on 90% of the assessed value for the first, partial year. You'll pay based on 60% of the assessed value for your first full year of ownership, [If you registered in January, then you get to pay for a full year at 90%.]
2) The assessed value includes the cost of the premium upgrade package, the long range battery and paint that isn't black. It does not include the cost of AWD, auto pilot or the destination fee.

Now, I'll show my work...

The "assessed value" of my model 3 is $51,000 - this is the purchase price of my vehicle including the premium upgrade package, the long range battery and the white paint, but *excluding* the $5K for AWD and the $5K for enhanced auto pilot (my sticker price was $61,000).

I registered my car in November of '18 and paid $191.25 in excise tax for the last 2 months of the year (I received my bill in February). [TL;DR: $191.25 * 6 = $1147.50 per year; $1147.50 / 25 * 1000 / 90% = $51,000 assessed value.]

I contacted my town (because I had received our 2019 excise tax bill for our Subaru but not our Tesla) and was told my bill will arrive next week and will be $765. [TL;DR: $765 / 25 * 1000 / 60% = $51,000 assessed value.]

jhn | 5 avril 2019

To second @Idahorefugee's explanation. My numbers were exactly the same as @Idahorefugee's for 2019 bill. For 2018 it was exactly double his amount since I had my car 2 months longer since September.

@j.nichol You car is not going to be assessed at $35k. Back in 2017 some towns didn't understand in MA but have corrected to include more clean lines between prices of options and models with regards to Tesla. And NH... well no explanation for their low assessment other than if it took MA awhile to catch up, it will be longer for NH to catch on. ;-)

j.nichol | 5 avril 2019

I am really surprised that they aren't including AWD, auto pilot or the destination fee in the sticker price. It sounds like it will be worth sending in the sticker info to them and seeing if they remove those aspects from my assessed value. But the way Tesla has it written up on the sticker shows the final price of the car after everything including the doc fee.

bunoroad | 17 avril 2019

Hi. I bought my Tesla within the past 2 months: Model 3, AWD,m Enhanced Autopilot. Cost about 50K. Got the excise tax bill today from the city of Gloucester for $1211.15, I am in complete shock. I understand how excise tax is calculated and determined, but this is an obscene amount of money to charge someone who already paid you (MA) when I purchased the vehicle. Do I have any recourse? Any leniency on that price? I truly resent this bill. Does anyone have an advicee for me when I go to City Hall to tactfully and politely explain mu dismay and seek some sort of deduction. Unreal. Thanks.

liamcraig12345678 | 25 avril 2019

Taxes are taxes you should be happy you are paying them xD. Taxes aren't negotiable. You're the people that want higher taxes anyways so why complain? TeslaLogicBestLogic NotaBugItsaFeature

ODWms | 25 avril 2019

I hate taxes. But I would hate even more not being in the position to pay the taxes I do.

paul | 25 avril 2019

Massachusetts Excise taxes go to cities and towns. The revenue is used for local services, like schools, police, fire fighters. I don't understand people who say they hate taxes.

paul | 25 avril 2019

Massachusetts Excise taxes go to cities and towns. The revenue is used for local services, like schools, police, fire fighters. I don't understand people who say they hate taxes.

VolleyballNE1 | 25 avril 2019

The Valuation for your car is at the very least, the "Total Base Price" found at for your new car. I think the remainder is Wheel/paint/Interior options. Software options are not included in my 2018 AWD that is valued at 56500 MSRP. So from there my current valuation is 33900 based on year 2 calculations off the 56500 MSRP.

hcdavis3 | 26 avril 2019

Because my Model 3 was a July 2018 build delivered in March of 2019 as a demo car my excise tax bill was around 500 bucks. If I had waited for a 2019 build I probably would have paid close to 1000 bucks.

o7b2 | 8 juin 2019

My M3 was first valued at 52,850. I scanned my paper work from the dealer and emailed them to Mass RMV. I was notified 4 days later and the value was revised to 38,000.

VolleyballNE1 | 8 juin 2019

A value without a trim reference is not informative. 38K? Must be a SR+ which has a minimum Total Base Price of 36.2K.

juanbarrera9 | 11 juin 2019

@o7b2 I guess I need to follow the same steps
I have a SR + received my excise tax for 52 k today. could you please provide us with that RMV email address? I can’t find a direct email or instructions anywhere . Thanks in advance .