An Act To Base the Motor Vehicle Excise Tax on the Purchase Price of a Motor Vehicle
Maine Legislature, Session 125, LD 0436
Committee: Taxation
Sponsors: THOMAS, GIFFORD, SNOWE-MELLO, CEBRA, CRAFTS, HARVELL
Amends: 36 MRSA §1482

Legislative Document 
No. 436 
S.P. 140 
In Senate, February 10, 2011 
An Act To Base the Motor Vehicle Excise Tax on the Purchase Price 
of a Motor Vehicle 
Reference to the Committee on Taxation suggested and ordered printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator THOMAS of Somerset. 
Cosponsored by Representative GIFFORD of Lincoln and 
Senator: SNOWE-MELLO of Androscoggin, Representatives: CEBRA of Naples, CRAFTS of 
Lisbon, HARVELL of Farmington, McKANE of Newcastle. 
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, 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 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. For the purposes of this paragraph, "purchase price" means the 
amount of money financed or paid by the consumer after any rebates, discounts or 
offers or promises that the consumer receive back all or a portion of the price paid. 
(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. 
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. 
This bill requires that the excise tax for all motor vehicles and camper trailers be 
based upon the purchase price of the vehicle and defines "purchase price" as the actual 
amount of money financed or paid by the consumer after any rebates or discounts.  Either 
the original bill of sale or the state sales tax document may be used to verify the purchase 
price.