1. All NM Taxes
  2. Frequently Asked Questions
  3. Is a rebate, offered for the purchase of a vehicle, included in the price paid for the vehicle for purposes of calculating the motor vehicle excise tax on the sales price?

Is a rebate, offered for the purchase of a vehicle, included in the price paid for the vehicle for purposes of calculating the motor vehicle excise tax on the sales price?

Yes. Though a rebate reduces the actual amount paid by the buyer, it does not reduce the total price paid for a vehicle. By law, motor vehicle excise tax is derived from the price paid for the vehicle regardless of any rebates that subsequently reduce the amount the buyer paid.