An Act To Provide for the Temporary Suspension of the Tax on Motor Fuel
Maine Legislature, Session 122, LD 0698
Committee: Transportation
Sponsors: NASS
Amends: 36 MRSA §2903, 36 MRSA §3203, 36 MRSA §3321

Legislative Document 
No. 698 
S.P.235 
In Senate, February 10, 2005 
An Act To Provide for the Temporary Suspension of the Tax on 
Motor Fuel 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Senator NASS of York. 
Printed on recyc led paper 
JOY 1. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 36 MRSA §2903, sub.§I.D is enacted to read: 
1-D. Suspension of excise tax. Notwithstanding subsection 1, 
the tax imposed pursuant to subsection 1 
is suspended if the 
weekly average retail price of internal combustion engine fuel 
sold in this State: 
A. 
Exceeds by 50°" or more the weekly average retail price 
for the immediately preceding 52 weeks; or 
B. 
Exceeds 
by 
more 
than 
50% 
the 
immediately preceding 
calendar year average retail price. 
The tax imposed pursuant to subsection 1 is suspended during the 
calendar month following the date upon which either condi tior~ 
specified in paragraphs A and B is met. 
For purposes of this subsection, "weekly average retail price" 
and "calendar year average retail price" mean the average retail 
prices of internal combustion engine fuel sold in this State for 
those respective periods as reported by the American Automobile 
Association 
of 
Northern 
New 
England, 
or 
its 
successor 
organization, less the tax imposed pursuant to subsection 1. 
Sec. 2. 36 MRSA §3203. sub·§I·A is enacted to read: 
1-A. 
Suspension of excise tax. Notwithstanding subsection 
1, the tax imposed pursuant to subsection 1 is suspended if the 
weekly 
average retail price of methanol, 
ethanol, 
propane or 
compressed gas sold in this State: 
A. 
Exceeds by 50°" or more the weekly average retail price 
for that fuel for the immediately preceding 52 weeks; or 
B. 
Exceeds by more than 50 Q" 
for that fuel the immediately 
preceding calendar year average retail price. 
The tax imposed pursuant to subsection 1 is suspended during the 
calendar month following the date upon which either condition 
specified in paragraphs A and B is met. 
For purposes of this subsection, "weekly average retail price" 
and "calendar year average retail price" mean the average retail 
prices of methanol ( ethanol ( propane or compressed gas sold in 
this State for 
those respective periods 
and those respective 
fuels 
as 
reported by 
the 
American 
Automobile 
Association of 
Northern New England, or its successor organization, less the tax 
imposed pursuant to subsection 1. 
Sec. 3. 36 MRSA §3321, sub-§2. as enacted by PL 2001, c. 688, 
§8, is amended to read: 
2. 
Method 
of 
calculation; 
inflation 
index 
defined; 
maximum. 
The inflation index for 
2003 is 1.118, 
representing 
annual 
inflation 
adjustments 
for 
the 
years 
1999 
to 
2002, 
inclusive. 
Starting in 
2004 
and every year thereafter, 
the 
inflation index is the Consumer Price Index as defined in section 
5402, subsection 1 for the calendar year ending on the December 
31st immediately preceding the calculation date, divided by the 
Consumer Price Index for the prior calendar year, except that the 
maximum annual inflation index is 2%. 
SUMMARY 
This bill suspends the 
engine fuel and on special 
fuels exceeds by 50°"0 or more 
the fuel for the previous 52 
also caps the inflation index 
tax imposed on internal combustion 
fuels if the retail price of those 
the weekly average retail price of 
weeks or calendar year. 
This bill 
on motor fuels at 2% annually.