BMV to Issue Refund in Excise Tax


Officials with the Bureau of Motor Vehicles and the Indiana Department of Revenue will be working together to issue excise tax refunds to affected customers.

Indiana BMV Commissioner Don Snemis stated that some vehicles were classified in error for excise tax purposes. These misclassifications stretch back to 2004 when the BMV’s System Tracking and Record Support system was implemented on a limited basis.

Data entered into the computer system included tax classification based on value. The value is determined by using the price of the vehicle and applying an adjustment factor based upon Consumer Price Index data related to increases in new automobile prices. This information is entered into the database to automatically calculate excise taxes when vehicles are registered. In some cases, the system did not apply the adjustment factor, which caused some vehicles to be misclassified.

Anyone who overpaid will be notified by mail and provided a pre-printed claim form to obtain a refund with interest.

Snemis estimates 180,000 individuals were affected by this issue and the total refund is about $29 million plus interest.