An Act To Base the Excise Tax on Vehicles on a Percentage of the Manufacturer's Suggested Retail Price
Maine Legislature, Session 125, LD 0079
Committee: Taxation
Sponsors: KNIGHT, SHERMAN, BENNETT, HARMON, NEWENDYKE, O'CONNOR, PICCHIOTTI, PILON, SANDERSON, TRAHAN
Amends: 36 MRSA §1482

Legislative Document 
No. 79 
H.P. 67 
House of Representatives, January 12, 2011 
An Act To Base the Excise Tax on Vehicles on a Percentage of the 
Manufacturer's Suggested Retail Price 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative KNIGHT of Livermore Falls. 
Cosponsored by Senator SHERMAN of Aroostook and 
Representatives: BENNETT of Kennebunk, HARMON of Palermo, NEWENDYKE of 
Litchfield, O'CONNOR of Berwick, PICCHIOTTI of Fairfield, PILON of Saco, 
SANDERSON of Chelsea, Senator: TRAHAN of Lincoln. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1482, sub-§1, ¶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 to 24 mills on each dollar of the adjusted maker's list 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 1/2 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 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 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.  For purposes of this paragraph, "adjusted maker's list price" means 90% 
of the maker's list price. 
Sec. 2.  Application.  This Act applies to motor vehicles registered on or after 
October 1, 2011. 
SUMMARY 
Current law requires the excise tax paid on motor vehicles to be based on the 
manufacturer's suggested retail price, regardless of the amount actually paid for the motor 
vehicle. 
This bill instead requires the excise tax to be based on 90% of the manufacturer's 
suggested retail price for the motor vehicle, regardless of the amount actually paid for the 
motor vehicle.