An Act To Amend the Excise Tax on Motor Vehicles To Reflect Depreciation
Maine Legislature, Session 124, LD 0588
Committee: Taxation
Sponsors: PILON, PERRY
Amends: 36 MRSA §1482

FIRST P..EGULAR SESSION-2009 
Legisiative Document 
No. 588. 
H.P.426 
House of Representatives, February 17,2009 
An Act To Amend the Excise Tax on Motor Vehicles To Reflect 
Depreciation 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative PILON of Saco. 
Cosponsored by Senator PERRY of Penobscot and 
Representative: V ALE.NTINO of Saco. 
PrillleJ IlIJ I'l!cYLkd paper 
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MILLICENT M. MacFARLAND 
Clerk 
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Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §1482, sllb-§l,,4!jfC, as ame"nded by PL 2001, c. 671, §32, is 
further amended to read: 
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" "  
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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 ;M 20 mills on each dollar of 95% of the maker's list price for the first or 
"current year of model, ~ 
mills on e'ach dollar of 90% of the maker's list price 
for the 2nd year, ~ 
mills on each dollar of 85% of the maker's list price for 
the 3rd year, +G 20 mills on each dollar of 70% of the maker's list price for the 4th 
year, 6---lh!- 20 mills on each" doliar of 50% of the maker's list price for the 5th year 
and + 20 mills on each dollar of 15% of the maker's list price 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 tmck 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 commercial vehicles manufactured in model year 1996 and after, the 
amount of excise tax due for trucks or tmck 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 ptirchase. 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 
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registration. 
SUMMARY 
Under current law, the base of the motor vehicle excise tax remains unchanged for 
the purposes of the tax throughout the life of the motor vehicle as the manufacturer's 
suggested retail price, or maker's list price, and the rate that is applied to. that base 
depreciates over a 6-year period from 24 mils to 4 mils. Under this bill, the rate of the 
motor vehicle excise tax remains unchanged throughout the life of the vehicle, but the 
base depreciates over the same 6-year period from 95% of the maker's list price to 15% of 
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the maker's list price, to better refiectthe depreciating actual value ofthe vehicle. 
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