An Act To Enhance Energy Security by RequiriQg Greater Fuel Efficiency .. < P:
Maine Legislature, Session 123, LD 1342
Committee: Taxation
Sponsors: BERRY, BLISS, BURNS, FLETCHER, PIOTTI, WATSON, WEDDELL, ROSEN
Amends: 29-A MRSA §501, 36 MRSA §1482, 36 MRSA §1483

Legislative Document 
No. 1342 
H.P.951 
House of Representatives, March 12,2007 
An Act To Enhance Energy Security by RequiriQg Greater Fuel 
Efficiency 
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Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representati ve HINCK of Portland. 
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MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: BERRY of Bowdoinham, BLISS of South Portland, BURNS 
of Berwick, FLETCHER of Winslow, PIOTTI of Unity, WATSON of Bath, WEDDELL of 
Frankfort, Senator: ROSEN of Hancock. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 29-A MRS A §501, sub-§3, as enacted by PL 1993, c. 683, Pt. A, §2 and 
as affected by Pt. B, §5, is amended to read: 
3. Passenger vehicles for hire. The fee for a passenger vehicle used for hire is 
double the fee provided in subsection 1. 
The Secretary of State may issue a 2nd 
registration for the same vehicle at no additional fee. Beginning in fiscal year 2007-08, a 
passenger vehicle used for hire, not including a taxicab or limousine, that is offered for a 
rental period of less than one year, of which over 50% of its mileage is driven in the State 
and that has a fuel efficiency that is at least 50% higher than the federal corporate average 
fuel efficiency standards or successor federal fuel economy standard as required by 49 
United States Code, Chapter 329, is exempt from a fee under this subsection and 
subsection 3-A. 
Sec. 2. 29-A MRSA §501, sub-§3-A is enacted to read: 
3-A. Additional fee. Beginning in fiscal year 2007-08, an additional fee must be 
paid under this subsection for a passenger vehicle used for hire, not including a taxicab 
or limousine, that is offered for a rental period of less than one year, of which over 50% 
of its mileage is driven in the State and that does not qualify for an exemption under 
subsection 3. At the end of a fiscal year, the Secretary of State shall calculate the loss of 
revenue from the total number of exemptions under subsection 3 for that fiscal year and 
assess a fee in an amount equal to the amount of revenue lost for the previous fiscal year 
and the cost of administering this subsection apportioned pro rata among the passenger 
vehicles subject to the fee under this subsection. 
Sec. 3. 36 MRSA §1482, sub-§8 is enacted to read: 
8. Passenger vehicles used for hire. Beginning in fiscal year 2007-08, an additional 
tax must be paid under this subsection for a passenger vehicle used for hire, not including 
a taxicab or limousine, that is offered for a rental period of less than one year, of which 
over 50% if its mileage is driven in the State and that does not qualify for an exemption 
under section 1483, subsection 16. The tax collected under this subsection must be 
collected by the assessor. At the end of a fiscal year, the assessor shall calculate the loss 
of revenue from the total number of exemptions under section 1483, subsection 16 for 
that fiscal year and assess a tax in an amount equal to the amount of revenue lost for the 
previous fiscal year and the cost of administering this subsection apportioned pro rata 
among the passenger vehicles subject to the tax under this subsection. The assessor shall 
distribute the proceeds from the tax under this subsection to a municipality in an amount 
equal to the amount of tax the municipality lost due to an exemption under section 1483, 
subsection 16. 
Sec. 4. 36 MRSA §1483, sub-§16 is enacted to read: 
16. Fuel-efficient passenger vehicles for hire. Beginning in fiscal year 2007-08, a 
passenger vehicle used for hire, not including a taxicab or limousine, that is offered for a 
rental period of less than one year, of which over 50% of its mileage is driven in the State 
and that has a fuel efficiency that is at least 50% higher than the federal corporate average 
fuel efficiency standards or successor federal fuel economy standard as required by 49 
United States Code, Chapter 329, is exempt from a tax under this subsection and 
subsection 8. 
Sec. 5. Initial tax year for additional registration fee. For fiscal year 2007-
08, the Secretary of State shall estimate the amount of revenue lost due to exemptions 
under the Maine Revised Statutes, Title 29-A, section 501, subsection 3 to calculate and 
assess the additional fee required under Title 29-A, section 501, subsection 3-A. 
Sec. 6. Initial tax year for additional excise tax. For fiscal year 2007-08, the 
State Tax Assessor within the Department of Administrative and Financial Services, 
II 
Bureau of Revenue Services shall estimate the amount of revenue lost due to exemptions 
under Title 36, section 1483, subsection 16 to calculate and assess the additional tax 
required under Title 36, section 1482, subsection 8. 
SUMMARY 
This bill exempts rental cars of which of 50% of their mileage is driven in Maine that 
have a fuel efficiency of at least 50% higher than the federal average fuel economy 
standards set by the Federal Government from the registration fee and excise tax for 
motor vehicles and charges an additional registration fee and excise tax for rental cars 
that are not exempt in an amount that equals the amount of exemptions given.