An Act To Exempt the Sale of Electric, Hybrid or Hydrogen-Fueled Vehicles from State Sales Tax and Excise Tax
Maine Legislature, Session 122, LD 0778
Committee: Taxation
Sponsors: CRESSEY, SNOWE-MELLO, GERZOFSKY, HAMPER, MAREAN, NASS, RINES, SMITH, THOMPSON
Amends: 36 MRSA §1482, 36 MRSA §1760

Legislative Document 
No. 778 
H.P.555 
House of Representatives, February 15,2005 
An Act To Exempt the Sale of Electric, Hybrid or Hydrogen-Fueled 
Vehicles from State Sales Tax and Excise Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative CRESSEY of Cornish. 
IY/~ 
1J7. 7llt1£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Senator SNOWE-MELLO of Androscoggin and 
Representatives: GERZOFSKY of Brunswick, HAMPER of Oxford, MAREAN of Hollis, 
NASS of Acton, RINES of Wiscasset, SMITH of Monmouth, THOMPSON of China, 
W ALCOTT of Lewiston. 
Printed on recycled paper 
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 or camper 
trailer on the public ways, each motor vehicle, other than a 
stock race car, at 9~~ each camper trailer to be so operated 
is subject to excise tax as follows, except as specified in 
6~BFata~taFb subparagraph~ (3) and (4): 
a sum equal to 24 
mills on each dollar of the maker's list price for the first 
or current year of model, 17 1/2 mills for the 2nd year, 13 
1/2 mills for the 3rd year, 10 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 
the 
International 
Registration 
Plan 
are 
subject 
to 
an 
determined 
on 
a 
monthly 
proration 
basis 
registration period is less than 12 months. 
excise 
if 
tax 
their 
(3) 
For commercial vehicles manufactured in model year 
1996 and after, the amount of excise tax due for trucks 
or 
truck 
tractors 
registered 
for 
more 
than 
26,000 
pounds and for Class A special mobile equipment, 
as 
defined in Title 29-A, section 101, subsection 70, is 
based on the purchase price in the original year of 
title rather than on the list price. 
Verification of 
purchase price for the application of excise tax is 
determined by the initial bill of sale or the state 
sales tax document provided at point of purchase. 
The 
initial bill of sale is that issued by the dealer to 
the initial purchaser of a new vehicle. 
(4) 
For 
a 
hybrid 
gasoline-electric 
vehicle 
or 
a 
fuel cell-fueled or hydrogen-fueled vehicle, no excise 
tax is due for the first 3 model years of the vehicle. 
Beginning with the 4th year, the excise tax due is as 
follows: a sum equal to 10 mils on each dollar of the 
maker's list price for the current year of model for 
the 4th year, 6 1/2 mills for the 5th year and 4 mills 
for the 6th and succeeding years. 
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. 
Sec. 2. 36 MRS A §1752, sub-§l-G, as enacted by PL 1997, c. 
791, Pt. A, §l, is repealed. 
Sec. 3. 36 MRSA §1760, sub-§79, as enacted by PL 1997, c. 791, 
Pt. A, §2, is repealed. 
Sec. 4. 36 MRSA §1760, sub-§79-A is enacted to read: 
79-A. 
Clean fuel vehicl~s~ ___ The amount of the sale or lease 
price 
of 
a 
new 
h~brid 
gasoline-electric 
vehicle 
or 
a 
~~el-cell-fueled or hydrogen-fueled vehicle. 
SUMMARY 
Current law provides a sales tax exemption for a clean fuel 
vehicle, defined as a vehicle that may be propelled by a clean 
fuel or a fuel-cell electric vehicle that uses any fuel, but only 
up to the amount that the clean fuel vehicle price exceeds the 
price of a gasoline-fueled or diesel-fueled internal combustion 
vehicle. 
This bill exempts from the sales tax 100°" of the sale or 
lease price of 
a 
new 
hybrid gasoline-electric vehicle or 
a 
fuel-ceIl-fueled 
or 
hydrogen-fueled vehicle. 
This bill also 
exempts, 
for 
the 
first 
model 
years 
of 
a 
hybrid 
gasoline-electric 
vehicle 
or 
a 
fuel-ceIl-fueled 
or 
hydrogen-fueled vehicle, 
the 
excise 
tax 
due 
on 
the vehicle. 
After the first 3 years, the rate of excise tax is the same as on 
other motor vehicles of the same age.