An Act To Compute the Automobile Excise Tax Based on the Actual Purchase Price (AFfER DEADLINE)
Maine Legislature, Session 123, LD 1905
Committee: Taxation
Sponsors: McDONOUGH, SMITH, CLARK, GERZOFSKY, MAREAN, PENDLETON, PERCY, SYKES, TARDY, WEBSTER
Amends: 36 MRSA §1482

Legislative Document 
No. 1905 
H.P. 1339 
House of Representati ves, May 11, 2007 
An Act To Compute the Automobile Excise Tax Based on the Actual 
Purchase Price 
(AFfER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative McDONOUGH of Scarborough. 
Cosponsored by Senator SMITH of Piscataquis and 
111~ 
/J7.1ll~~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CLARK of Millinocket, GERZOFSKY of Brunswick, MAREAN of Hollis, 
PENDLETON of Scarborough, PERCY of Phippsburg, SYKES of Harrison, TARDY of 
Newport, WEBSTER of Freeport. 
PflnteJ 1m recycled papt::r 
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 200 I. c. 671. ~32, is 
further amended to read: 
C. For the privilege of operating a motor vehicle, including a commercial motor 
vehicle as defined in Title 29-A, section 101, subsection 17, paragraph A and special 
mobile equipment as defined in Title 29-A, section 101, subsection 70, 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 
purchase 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, 6 112 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 tract(1rS, 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 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 e~(Cise tall is determined by the initial bill of sale or the state sales 
tax document provided at point of purchase. Verification of the purchase price 
for the application of excise tax is determined bv the initial bill of sale or the state 
sales tax document provided at the 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 I, 
paragraph C, the excise tax must be prorated for the number of months in the 
registration. 
SUMMARY 
This bill changes the method of computing the excise tax that is levied on motor 
vehicles and camper trailers registered in the State. 
With the exception of commercial motor vehicles and special mobile equipment, 
current law requires that the excise tax be based upon the maker's list price for the motor 
vehicle; the excise tax on commercial motor vehicles and special mobile equipment is 
based on the purchase price. 
Page I - 123LR2478(OI)-1 
This bill requires that the excise tax for all motor vehicles and campers be based upon 
the purchase price of the vehicle. Either the original bill of sale or the state sales tax 
document may be used to verify the purchase price. The bill repeals the section of law 
dealing with the computation of excise taxes on commercial motor vehicles since all 
motor vehicles would be taxed in the same manner under this bill.