An Act To Delay the Fiscal Sustainability of the Highway Fund
Maine Legislature, Session 122, LD 0131
Committee Amendment CA_A-SA_C_S99 (Senate)
Amends: 36 MRSA §2903, 36 MRSA §3203, 36 MRSA §3321

SENATE 
AMENDMENT 
It C" to COMMITTEE 
AMENDMENT 
" A" to H. P . 
109, L.D. 131, Bill, "An Act To Delay the Fiscal Sustainability 
of the Highway Fund" 
Amend the amendment by striking out everything after the 
enacting clause and before the emergency clause and inserting in 
its place the following: 
'Sec. I. 36 MRSA §2903, sub-§I, as amended by PL 2001, c. 688, 
§l, is further amended to read: 
1. 
Excise tax 
imposed. 
An 
excise 
tax 
is 
imposed 
on 
internal combustion engine fuel used or sold wi thin this State, 
including sales to the State or a political subdivision of the 
StateT-~--~~-~a~€-~~-~~¢-~--~a~~&&r-~~~--~~-~h€-~~~-is 
3T4¢-pe~-~a~~e~-~~~~~-~~~~~-~~r-a&-Qef~&ea-iB 
see~iaB-~9g~T-ee~~h~-e~-~~~~~-~~~~~~-pr&pe~~~~-je~-a~ 
E~FB&je~-eB~iBe-ai~€~a~E. 
~Re-~aK-~~~~~~~-~hi&-seeEieB 
is-~~-~e--a&&~a~-~~~~~~-aQj~6~ffieB~--p~~&~a~~-~~-see~iaB 
6~a~-~~~-~1t~-F&&p&&~-~e-~~~*-iffi~e&eQ-~pe~-~~~-~~~~-eF 
~seQ--~eF--~Re--~~F~ase--a~--~Fa~elliB~--;e~--eF--~~FSa;e~--eB~iBe 
aiFeFa~~T The applicable tax rate is: 
D. 
Beginning July L 
2005 and until June 30, 2007, 25.2¢ 
per gallon; and 
E. 
For internal combustion engine fuel bought or used for 
the purpose of propelling jet or turbojet aircraft, 3.4¢ per 
gallon. 
SENATE AMENDMENT 
• f'o. 
~ 
SENATE AMENDMENT ·e" to COMMITTEE AMENDMENT "A" to H. P . 
L.D. 131 
109, 
Sec. 2. 36 MRSA §3203, sub-§l, as amended by PL 2001, c. 688, 
§5, is repealed and the following enacted in its place: 
1. 
Generally. 
Except as provided in section 3204-A, 
an 
excise tax is levied and imposed on all suppliers of distillates 
sold, on all retailers of low-energy fuel sold and on all users 
of special fuel used in this State at the following rates: 
A. 
For distillates, the applicable tax rate is 26.3¢ per 
gallon beginning July 1, 2005 until June 30, 2007: and 
B. 
For low-energy fuel, 
the tax rate is based on the 
British Thermal Unit. or "BTU," energy content for each fuel 
as 
compared to gasoline. 
Applicable 
BTU values 
and tax 
rates are determined as follows: 
( 1) 
For gasoline with a 
BTU content per gallon of 
115,000 and a BTU value of 100~, the tax rate is: 
(a) 
From July 1, 2004 to June 30, 2007, 25.2¢ per 
gallon as authorized in section 2903: and 
(b) 
Beginning July L 
2007, 26.5¢ per gallon as 
authorized in section 2903; 
(2) 
For methanoL M8S, with a BTU content per gallon 
of 65,530 and a BTU value of 57~, the tax rate is: 
(a) 
From July 1, 2004 to June 30, 2007, 14.3¢ per 
gallon: and 
(b) 
Beginning July 1, 
2007, 
57~ of the rate 
established under section 2903, 
subsection 1 as 
increased pursuant to section 3321; 
(3) 
For ethanol, E85, with a BTU content per gallon of 
81,850 and a BTU value of 71~, the tax rate is: 
(a) 
From July 1, 2004 to June 30, 2007, 17.8¢ per 
gallon; and 
(b) 
Beginning July 
1, 
2007, 
71~ of the rate 
established under section 2903, 
subsection 1 
as 
increased pursuant to section 3321; 
(4) 
For propane with a 
BTU 
content per gallon of 
84,500 and a BTU value of 73~, the tax rate is: 
(a) 
From July 1, 2004 to June 30, 2007, 18.3¢ per 
gallon: and 
SENATE AMENDMENT 
SENATE AMENDMENT 
.. e· to COMMITTEE 
AMENDMENT 
.. A" to H. P . 
L.D. 131 
(b) 
Beginning July 1, 
2007, 
73% 
of the 
established under section 2903, 
subsection 
increased pursuant to section 3321: and 
109, 
rate 
as 
(5) 
For compressed natural gas 
with a BTU content per 
standard cubic feet of 100, 000 and a BTU value of 
87%, the tax rate is: 
(a) 
From July 1, 2004 to June 30, 2007, 21.9¢ per 
standard cubic feet: and 
(b) 
Beginning July 1, 
2007, 
87% 
of the rate 
established under section 2903, 
subsection 
as 
increased pursuant to section 3321. 
Sec. 3. 36 MRSA §3321, sub-§§l and 2, as enacted by PL 2001, c. 
688, §8, are amended to read: 
1. 
Generally. 
Beginning in 6QQ6 
£Q..Q.1., 
and each calendar 
year thereafter, the excise tax imposed upon internal combustion 
engine fuel pursuant to section 2903, subsection 1 and the excise 
tax imposed upon distillates pursuant to section 3203, subsection 
are subject to an annual rate of adjustment pursuant to this 
section. 
On or about February 15th of each year, the State Tax 
Assessor shall calculate the adjusted rates by multiplying the 
rates in effect on the calculation date by an inflation index as 
computed in subsection 2. 
The 
adjusted rates must then be 
rounded to the nearest 1/10 of a cent and become effective on the 
first day of July immediately following the calculation. 
The 
assessor shall publish the annually adjusted fuel tax rates and 
shall provide all necessary 
forms 
and reports to suppliers, 
distributors and retail dealers. 
2. 
Method of calculation; inflation index defined. 
'rae 
inElatien-~£4e£-~~--~~-i6-~'~~~7-~~~~~-a&&~~-inElatien 
ae~Qstmen~s-~~-~~-year&-~~~~-~~-b~br-iBelQ6iyeT Starting in 
6QQ4 2007 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. I 
SUMMARY 
This amendment requires the gas tax rate to remain at 25.2¢ 
per gallon and the tax on distillates to remain at 26. 3¢ per 
gallon from July 1, 2005 until June 30, 2007. 
The amendment also 
SENATE AMENDMENT 
.,fItI.r 
~ 
SENATE AMENDMENT 
L.D. 131 
.C;. to COMMITTEE 
AMENDMENT 
"A" to H. P. 109, 
incorporates the bill, which delays the adjustment of the excise 
tax on internal combustion engine fuel and distillates from 2005 
to 2007. 
FlseAL NOTE REQUIRED 
(See attached) 
SPONSORED BY: 
(Senator R. J2ul",,'" ?\ ' ~ ~ 
NASS) 
COUNTY: 
York 
SENATE AMENDMENT 
Net Cost (Savings) 
General Fund 
Highway Fund 
Kevenne 
General Fund 
Highway Fund 
Approved: 04/15/05 .;t;?ae. 
LD 131 
LR 0348(010) 
An Act To Delay the Fiscal Sustain ability of the Highway Fund 
Fiscal Note for Senate Amendment Cto Committee Amendment A 
Sponsor: Sen. Nass 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2005-06 
2006-07 
2007-08 
$8,907 
$17,838 
$18,367 
$4,704,327 
$9,557,439 
$9,851,441 
Projections 
2008-09 
$18,912 
$10,153,957 
($18,367) 
($18,912) 
($9,851,441) 
($10,153,957) 
Other Special Revenue Funds 
($8,907) 
($4,704,327) 
($114,143) 
($17,838) 
($9,557,439) 
($223,470) 
($230,078) 
($236,857) 
Fiscal Detail and Notes 
This amendment decreases Highway Fund revenue by $4,704,327 in fiscal year 2005-06 and $9,557,439 in fiscal year 
2006-07 and decreases General Fund revenue by $8,907 in fiscal year 2005-06 and $17,838 in fiscal year 2006-07. 
LR0348(10) - Fiscal Note - Page 1 of 1