The phase out applies to all motor vehicles and trailers, including leased vehicles. In the event the actual excise tax is less than the estimated excise tax, the lessor shall rebate annually to the lessee the difference between the actual excise tax and the estimated excise tax. The motor vehicle excise tax phase out commences with the excise tax bills mailed to taxpayers for the fiscal year 2000. The excise tax phase out provides increased levels of assessed value reductions until the tax is eliminated.
Current exemptions remain in effect throughout the phase out period.