An Act To Change the Formula for Calculation of the Motor Vehicle Excise Tax
Maine Legislature, Session 123, LD 2270
Committee Amendment CA_A_H974 (House)
Amends: 29-A MRSA §533-A

COMMITTEE AMENDMENT "A " to H.P. 1633, L.D. 2270, Bill, "An Act To 
Change the Formula for Calculation of the Motor Vehicle Excise Tax" 
Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
'Sec. 1. 29-A MRSA §533-A, sub-§3, ~A, as amended by PL 200 I, c. 361, § 15, 
is further amended to read: 
A. Between July I 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 I, 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 7 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.' 
Amend the bill in section I in paragraph C by striking out all of subparagraph (3) 
and inserting the following: 
'(3) For commercial vehicles manufactured in model year 1996 and after the first 
model 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 8th and 
subsequent model 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 
COMMITTEE AMENDMENT 
\\.$c:r 
COMMITTEE AMENDMENT";~" to H.P. 1633, L.D. 2270 
purchase. 
The initial bill of sale is that issued by the dealer to the initial 
purchaser of a new vehicle.' 
Amend the bill by inserting after section 1 the following: 
'Sec. 2. Effective date. This Act takes effect January 1,2009.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment limits to the first 7 model years reimbursement to municipalities 
with respect to excise tax on trucks registered for more than 26,000 pounds. 
Currently, the excise tax on trucks and truck tractors manufactured in model year 
1996 and after 1996 that are registered for more than 26,000 pounds_is JJased on the 
actual sales price rather than the manufacturer's suggested retail price. For most motor 
vehicles, the manufacturer's suggested retail price is the basis for the municipal excise tax 
calculation. 
The amendment continues the current excise tax calculation method for trucks for the 
first 7 model years, but for the 8th and subsequent model years, the excise tax is based on 
the vehicle's list price. 
Finally, the amendment adds an effective date to provide for a definitive 
implementation date so that municipalities, their systems vendors and the State can 
provide for an orderly implementation. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/03/08 frac.. 
LD 2270 
LR 3565(02) 
An Act To Change the Formula for Calculation of the Motor Vehicle Excise Tax 
Revenue 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
Other Special Revenue Funds 
$0 
$25,000 
$50,000 
Fiscal Detail and Notes 
Projections 
2010-11 
$50,000 
Limiting the Municipal Excise Tax Reimbursement Program to vehicles 7 years old or less will increase the amount 
remaining in the Other Special Revenue Funds account within the Secretary of State in fiscal year 2008-09 by 
$25.000. 
LR3565(02) - Fiscal Note - Page I of I