An Act To Create Excise Tax Equity and Consistency for Buses
Maine Legislature, Session 125, LD 1699
Committee: Taxation
Sponsors: KNAPP
Amends: 29-A MRSA §533-A, 36 MRSA §1481, 36 MRSA §1482

Legislative Document 
No. 1699 
H.P. 1251 
House of Representatives, December 23, 2011 
An Act To Create Excise Tax Equity and Consistency for Buses 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Clerk of the House on December 21, 2011.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative KNAPP of Gorham. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  29-A MRSA §533-A, sub-§3, ¶A, as amended by PL 2001, c. 361, §15, 
is further amended to read: 
A.  Between July 1st and October 31st, the Secretary of State shall disburse to a 
participating municipality a sum equal to the difference in the amount of excise tax 
that would have been collected by that municipality in the prior fiscal year on each 
commercial motor vehicle or bus under Title 36, section 1482, subsection 1, 
paragraph C, subparagraph (3) or (4) using the manufacturer's suggested retail price 
from the amount of that excise tax actually collected by that municipality in the prior 
fiscal year based on the actual purchase price.  The Secretary of State shall provide 
supporting documentation to a municipality regarding the disbursement that 
municipality receives under this section. 
Sec. 2.  36 MRSA §1481, sub-§8 is enacted to read: 
8.  Bus.  "Bus" has the same meaning as in Title 29-A, section 101, subsection 11. 
Sec. 3.  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) or 
(4):  a sum equal to 24 mills on each dollar of the 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. 
(4)  For buses manufactured in model year 2006 and after, the amount of excise 
tax due 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 provides that the motor vehicle excise tax on a bus manufactured in 2006 or 
after must be based on the purchase price of the bus rather than the maker's list price in 
the same manner as commercial trucks, truck tractors and special mobile equipment.  The 
bill also provides for reimbursement to municipalities from the Municipal Excise Tax 
Reimbursement Fund.