An Act To Repeal the Excise Tax on New Motor Vehicles
Maine Legislature, Session 123, LD 0079
Committee: Taxation
Sponsors: McDONOUGH, CRESSEY, GIFFORD, MAREAN
Amends: 36 MRSA §1482

Legislative Document 
No. 79 
H.P.77 
House of Representatives, January 9, 2007 
An Act To Repeal the Excise Tax on New Motor Vehicles 
Reference to the Committee on Taxation suggested and ordered printed. 
'7J1~m.17l~ 
Mll...LICENT M. MacFARLAND 
Clerk 
Presented by Representative McDONOUGH of Scarborough. (BY REQUEST) 
Cosponsored by Representatives: CRESSEY of Cornish, GIFFORD of Lincoln, MAREAN of 
Hollis. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 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 te 24 mills en eaeh Bellar ef the mal~er's list priee fer the first er eUffent 
year ef medel, 17 1/2 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 registratiens Registrations of new automobiles, trucks and truck 
tractors, the e~leise tax payment must be made prier te registratien and is 
purchased from a motor vehicle dealer licensed in any state for the sale of new 
motor vehicles are exempt from the excise tax under this section 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 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. 
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 MRSA §1482, sub-§4, ~A, as enacted by PL 1997, c. 200, §1, is 
amended to read: 
A. At the time ef p~'ment ef the exeise tax prier te a new registratien fer a new 
passenger .,'ehiele purehased frem a meter vehiele dealer lieensed in any state fer the 
sale ef new passenger vehieles, the ewner shall submit the manufaeturer's suggested 
retail priee stiel.er, er a eep)' efthe stieker, te the exeise tax eelleeter. In the case of 
rental and fleet vehicles, other documentation may be provided at the discretion of 
the municipal excise tax collector. 
This paragraph applies enly te these yehieles fer whieh a manufaernrer's suggested 
retail priee stiel~er is required b:y the Federal Geyemment. 
SUMMARY 
This bill exempts new motor vehicles from the excise tax.