motor vehicle excise tax

Motor vehicle excise tax is a tax levied annually on the value of a vehicle, based on its worth rather than its age or mileage. It is typically paid to local or state governments and helps fund transportation infrastructure like roads and bridges. The amount owed is usually calculated using a percentage of the vehicle's current market value, which declines over time as the vehicle ages. Factors such as vehicle type, weight, and age can influence the tax rate. This tax ensures that vehicle owners contribute to the maintenance and development of transportation systems they use.