An Act To Make Additional Allocations from the Highway Fund and Other Funds for the Expenditures of State Government and To Change Certain Provisions of State Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2005 and June 30, 2006
Maine Legislature, Session 122, LD 1974
Committee Amendment CA_A-SA_D_S648 (Senate)
Amends: 36 MRSA §2903, 36 MRSA §3203

SENATE 
AMENDMENT ;::D" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
l382, L.D. 
1974, Bill, "An Act To Make Additional Allocations 
from the Highway Fund and Other Funds for the Expenditures of 
State Government and To Change Certain Provisions of State Law 
Necessary to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2005 and June 30, 2006" 
Amend the amendment by inserting after Part Q the following: 
'PARTR 
Sec. R·I. 36 MRSA §2903, sub·§l, 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 
State, at the rate et-~~¢ per gallon in effect on July 1, 2007, 
except that the rate is 3.4¢ per gallon on internal combustion 
engine fuel, as defined in section 2902, bought or used for the 
purpose of propelling jet or turbojet engine aircraft. 
'±':Re-t.aH 
Fate-~~~-~--t:Ri&-~~-~~--sQg~eet-~~-~--iB~~atieB 
ae~QstmeBt-~~--~e-~~~~-~~~~-~~~-~~~-~e~~e€t.-~~-t:Re 
taH--4mFeSee--~p&B--~~--~--~--~--~~--&~--FQ~pe&e--e~ 
pFepe~liB~-~et-eF-~aFge~et-eB§iBe-aiFeFa~tT 
Sec. R·2. 36 MRSA §3203, sub.§I, as amended by PL 2001, c. 
688, §5, is further amended to read: 
1. 
Generally. 
Except as provided in section 3204-A, 
an 
excise tax is levied and imposed on all suppliers of distillates 
Page l-LR3082(31) 
SENATE AMENDMENT 
SENATE AMENDMENT .J)" to COMMITTEE AMENDMENT "A" to H.P. 1382, 
L.D. 1974 
sold, on all retailers of low-energy fuel sold and on all users 
of special fuel used in this State for each gallon of distillate 
at the rate e~-~6_ per gallon in effect on July 1, 2007 and for 
each gallon of low-energy fuel based on the British Thermal Unit, 
referred to in this subsection as "BTU," energy content for each 
fuel as compared to gasoline. 
*B-4:-he--e-a.s-e--~~--d-i-&t-i-J,...l-a-t-e-s-,.....-t;Re 
t;aH-~a~e-~~~~-~a~&-seet;ieB-4£-~-~~-a.&&~a.~-iB~*at;ieB 
aQ~Qst;JReRt;--ptK"...e;..uan..t:.-t;e--&e<l-t-4on--d-d-~;j,... 
Applicable BTU values are 
as follows. 
Fuel type 
BTU content 
Formula 
Tax rate 
per gallon 
(BTU 
value fuel/ 
BTU value 
gasoline) 
x tax rate 
gasoline 
Gasoline 
115,000 
100% x 22¢ 
22¢ per 
gallon 
as author-
ized in 
section 
2903 
Methanol 
65,530 
57°-0 x 22¢ 
12.5¢ per 
(M85) 
gallon 
Ethanol 
81, 850 
71'l-0 x 22¢ 
15.6¢ per 
(E85) 
gallon 
Propane 
84,500 
73'l-0 x 22¢ 
16¢ per 
gallon 
Compressed 
100,000 
87% x 22¢ 
19.1It per 
Natural Gas 
(BTU per 100 
standard cubic 
standard 
feet) 
cubic 
feet 
Sec. R·3. 36 MRS A c. 465, as amended, is repealed. 
Sec. R·4. Effective date. 
This Part takes effect July 1, 2007. 
SENATE AMENDMENT 
SENATE AMENDMENT <~" to COMMITTEE AMENDMENT "A" to H. P. 1382, 
L.D. 1974 
PARTS 
Sec. S-I. State Tax Assessor to determine BTU values. 
In 
anticipation of the repeal of the law requiring annual indexing 
of motor fuel tax rates, the State Tax Assessor shall determine 
the BTU values that should appear in the Maine Revised Statutes, 
Title 36, section 3203, subsection 1 based upon the repeal of 
Title 36, chapter 465 and shall submit legislation to the First 
Regular Session of the 123rd Legislature by January 5, 2007 to 
make the necessary changes in Title 36, section 3203 effective 
July 1, 2007.' 
Further amend 
any 
nonconsecutive 
consecutively. 
the amendment by 
Part 
letter 
or 
SUMMARY 
relettering or renumbering 
section 
number 
to 
read 
This amendment repeals the annual inflation indexing of the 
excise tax on motor fuel effective July 1, 2007. 
The amendment 
also requires the State Tax Assessor to submit' legislation to 
amend the relevant law to reflect the rate of tax as changed by 
inflation indexing as of July 1, 2007. 
SPONSORED BY: 
(Senator 
COUNTY: 
FISCAL NOTE REQUIRED 
(See attached) 
SENATE AMENDMENT 
Approved: 04/28/06 ~ae 
LD 1974 
LR 3082(31) 
An Act to Make Additional Allocations from the Highway Fund and Other Funds for the 
Expenditures of State Government and To Change Certain Provisions of State Law Necessary to the 
Proper Operations of State Government for the Fiscal Years Ending June 30, 2006 and June 30, 2007 
Fiscal Note for Senate Amendment ,tl)" to Committee Amendment" A" 
Net Cost (Savings) 
General Fund 
Highway Fund 
Revenue 
General Fund 
Highway Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Sponsor: Sen. Courtney 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$0 
$0 
$0 
$0 
$0 
2006-07 
$0 
$0 
$0 
$0 
$0 
Projections 
2007-08 
$0 
$0 
$0 
$0 
$0 
Projections 
2008-09 
$7,819 
$7,015,20' 
($7,819) 
($7,015,209) 
($136,972) 
Repealing fuel tax indexing beginning on July 1,2007 will result in revenue losses of $7,015,209 to the Highway 
Fund, $7,819 to the General Fund and $136,972 to Other Special Revenue Funds in fiscal year 2008-09. 
LR3082(31) - Fiscal Note - Page 1 of 1