An Act To Base the Excise Tax on Motor Vehicles on the Purchase Price
Maine Legislature, Session 122, LD 0345
Committee: Taxation
Sponsors: BRYANT, CLARK, RINES, TARDY, JACKSON, PERRY, PATRICK, SA VIELLO, WATSON
Amends: 36 MRSA §1482

Legislative Document 
No. 345 
S.P. 107 
In Senate, January 20, 2005 
An Act To Base the Excise Tax on Motor Vehicles on the Purchase 
Price 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator BRYANT of Oxford. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representatives: CLARK of Millinocket, RINES of Wiscasset, TARDY of 
Newport, Representative JACKSON of Fort Kent and 
Senator: PERRY of Penobscot, Representatives: BRYANT of Windham, PATRICK of 
Rumford, SA VIELLO of Wilton, WATSON of Bath. 
Printed on recyc led papel 
Emergency preamble. Whereas, acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, current law basing the sales tax on motor vehicles 
on the list price ignores the fact that the actual cost of the 
vehicle to the buyer is often less than the list price; and 
Whereas. this law as structured often requires the buyer to 
pay much more in taxes than the buyer should have to pay; and 
Whereas, this overtaxation is harmful to the buyer and to 
the economy; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §1482, sub-§I, ~C, as amended by PL 2001, c. 
671, §32, is further amended to read: 
C. 
For 
the 
privilege 
of 
operating 
a 
motor 
vehicle L 
including a 
commercial motor vehicle as defined in Title 
29-A, section 101, subsection 17, paragraph A and special 
mobile equipment as defined in Title 29-A, 
section 101, 
subsection 70, or camper trailer on the public ways, 
each 
motor vehicle, other than a stock race car, or each camper 
trailer to be 
so operated is subject to excise tax 
as 
fol1owsT--e-~--a£--sf'eeiEieE1--.Hr--fHl-bpa-r~-apb--{-a+: 
a 
sum 
equal 
to 
mills 
on 
each dollar of 
the 
ma*eF~s--~ist 
purchase price for the first or current year of model, 
1/2 mills for the 2nd year, 13 1/2 mills for the 3rd year, 
mills for the 4th year, 6 1/2 mills for the 5th year and 
mills for the 6th and succeeding years. 
The minimum tax 
is $5 for a motor vehicle other than a bicycle with motor 
attached, $2.50 for a bicycle with motor attached, $15 for a 
camper trailer other than a tent trailer and $5 for a tent 
trailer. 
The excise tax on a stock race car is $5. 
(1) 
On 
new registrations of automobiles, trucks and 
truck tractors, the excise tax payment must be made 
prior to registration and is for a one-year period from 
the date of registration. 
(2) 
Vehicles 
registered 
under 
Registration 
Plan 
are 
subject 
Page l-LR0295(1) 
the 
to 
an 
International 
excise 
tax 
determined 
on 
a 
monthly 
proration 
basis 
if their 
registration period is less than 12 months. 
~~}--Fe~-~~~~~~-~~~~~~~-~~-ffieee±-yeaF 
1999 - aR9.- a.f-t.e~7 - -t-h-e- -amount- -of- -€*O-i-se- -1:a-li- -Gl*€- -feF-t:Hisks 
eF--~F~e*--~Fae~eF6--Fe~~6~eFea--~eF--ffieFe--t:aaR--69TGGG 
~e~R9.s-~-.fe~--G±a&&-~-6~e€ial-~~~~-~~~7--as 
9.e~~Re9.-~~-~~~~-~~-A7-~~~-±Glr-£~~e~-t.J~--~r-~s 
Base9.-~-t:ae-~r~-F~~€e--~~--t-h-e--eF~~aa±-~--e~ 
t:~t:le-~~~--~ba~-eR-~~-±i&t:-~J€e,--~~~~~~-ef 
~~FeRase-~~~-.fe~--t:Re-~l~~~~-ef--&~~~--t~--~s 
9.et:eFffi~He9.-~-tHe--~~~~~-Bi~~-~f-~-e--eF-~~-st:a~e 
sales--t.a~-~--~~~~-at:-peJ£-t.--of--~~F&ba~r--±Re 
~H~t:~al-~~~-~f-6ale--~-t:Rat:-~~-By--t.he-~~--t:e 
t:Re-~H~t:~al-~~FeRaseF-ef-a-Hew-yeRisleT 
Verification of the purchase price for the application of 
excise tax is determined by the initial bill of sale or the 
state sales tax document provided at the point of purchase. 
The initial bill of sale is that issued by the dealer to the 
initial purchaser of a new vehicle. 
For motor vehicles being registered pursuant to Title 29-A, 
section 405, subsection 1, paragraph C, the excise tax must 
be prorated for the number of months in the registration. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill changes the method of computing the excise tax 
that is levied on motor vehicles and campers registered in the 
State. 
With the exception of commercial motor vehicles and special 
mobile equipment, current law requires that the excise tax be 
based upon the maker I s list price for the 
excise 
tax 
on 
commercial 
motor 
vehicles 
equipment is based on the purchase price. 
motor vehicle; the 
and 
special 
mobile 
This bill 
requires 
that 
the 
excise 
tax 
for 
all 
motor 
vehicles and campers be based upon the purchase price of the 
vehicle. 
Either the original bill of sale or the state sales tax 
document may be used to verify the purchase price. 
The bill 
repeals the section of law dealing with the computation of excise 
taxes on commercial motor vehicles since all motor vehicles would 
be taxed in the same manner under this bill.