An Act To Amend the Municipal Excise Tax Reimbursement Fund Law
Maine Legislature, Session 123, LD 0460
Committee: Taxation
Sponsors: FISHER, BROWNE, GERZOFSKY, MARLEY
Amends: 29-A MRSA §533-A, 36 MRSA §1482

Legislative Document 
No. 460 
H.P.359 
House of Representatives, January 30,2007 
An Act To Amend the Municipal Excise Tax Reimbursement Fund 
Law 
Submitted by the Secretary of State pursuant to Joint Rule 204. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative FISHER of Brewer. 
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1J7.7lJu~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: BROWNE of Vassalboro, GERZOFSKY of Brunswick, 
MARLEY of Portland. 
Printed on recycled paper 
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Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 29-A MRSA §533-A, sub-§3, ~A, as amended by PL 2001, c. 361, §15, 
is further amended to read: 
A. 
Between July 1 st and October 31 st, the Secretary of State shall disburse to a 
participating municipality a sum equal to the difference in the amount of excise tax 
that would have been collected by that municipality in the prior fiscal year on each 
commercial motor vehicle under Title 36, section 1482, subsection 1, paragraph C, 
subparagraph (3) using the manufacturer's suggested retail price from the amount of 
that excise tax actually collected by that municipality in the prior fiscal year based on 
the actual purchase price. The reimbursement is limited to vehicles 6 years old or 
less determined by the model year. The Secretary of State shall provide supporting 
documentation to a municipality regarding the disbursement that municipality 
receives under this section. 
Sec. 2. 36 MRSA §1482, sub-§l, ~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, or each camper trailer to be so 
operated is subject to excise tax as follows, except as specified in subparagraph (3): a 
sum equal to 24 mills on each dollar of the maker's list price for the first or current 
year of model, 17 112 mills for the 2nd year, 13 112 mills for the 3rd year, 10 mills for 
the 4th year, 6 112 mills for the 5th year and 4 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 excise tax determined on a monthly proration basis if their registration period 
is less than 12 months. 
(3) For eommereial ... 'efiieles H'laffiifaetl:H'es in mosel year 1999 ans after the first 
tax years, 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. For the 7th and subsequent tax 
years, the excise tax is based on the vehicle's 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. 
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. 
Page I - 123LRI035(Ol)-1 
SUMMARY 
This bill accomplishes the following. 
1. It amends the reimbursement procedure for municipalities with respect to excise 
tax on trucks more than 6 years old and registered for more than 26,000 pounds. 
Reimbursement is limited to the first 6 registration years. 
2. Currently, the excise tax on trucks and truck tractors manufactured in model year 
1996 and after that are registered for more than 26,000 pounds is based on the actual sales 
price rather than the manufacturer's suggested retail price, or "MSRP". For most motor 
vehicles, the MSRP is the basis for the municipal excise tax calculation. However, 
trucks purchased new often are traded within 3 years and the information on the original 
sales price often is unavailable. 
This bill continues the current excise tax calculation method for trucks for the first 6 
tax years, but for the 7th and subsequent tax years the excise tax is based on the vehicle's 
list price.