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chapter 68 exempts certain individuals organizations and entities from the motor vehicle excise on one or all of the vehicles they own and register in addition the federal service members civil relief act makes certain active duty military personnel exempt from the excise on the vehicles they own and register all of the individuals exempt under state law from the motor vehicle excise may also qualify for exemption for vehicles they lease however exempt organizations and entities are not exempt for vehicles they lease except for certain charitable organizations that are not degree granting or diploma awarding educational institutions note the for a leased vehicle the excise is generally assessed to the owner lessor not the lessee expenses incurred by the lessor during the lease including excises and other taxes are passed on to the lessee under the terms of the lease also note that unlike property taxes there is no fixed exemption eligibility date the owner can meet the qualifications