An Act To Base the Motor Vehicle Excise Tax on the Purchase Price of the Motor Vehicle
Maine Legislature, Session 126, LD 0167
Committee Amendment CA_A_S19 (Senate)
Amends: 36 MRSA §1482

COMMITTEE AMENDMENT "A "to S.P. 56, L.D. 167, Bill, "An Act To Base 
the Motor Vehicle Excise Tax on the Purchase Price of the Motor Vehicle" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 36 MRSA §1482, sub-§l, ~C, as amended by PL 2011, c. 646, §3, 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 ;M 25 mills on each dollar of the maker's list purchase price as 
documented on a bill of sale for the first or current year of model +f--l.,Q or in the 
event that the purchase price is not available, 90% of the maker's list price, 18 112 
mills for the 2nd year, .lJ.....l..,Q. 14 112 mills for the 3rd year, .w 11 mills for the 4th 
year, 6-l--,Q. 1 mills for the 5th year and -4- 4.4 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 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A .. to S.P. 56, L.D. 167 
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. Beginning in 2015 and each subsequent calendar year thereafter, on or 
about January 1st, the State Tax Assessor shall determine the mill rates for the excise 
tax so as to generate an amount of municipal revenue equal to the amount collected in 
2013 as adjusted for the cost of living using the Consumer Price Index. The State 
Tax Assessor, no later than January 15,2015 and annually thereafter, shall submit a 
bill to the joint standing committee of the Legislature having jurisdiction over 
taxation matters implementing the mill rate adjustment.' 
SUMMARY 
This amendment, which is the minority report of the committee, provides that the 
excise tax on a motor vehicle or camper trailer be based on the purchase price or 90% of 
the maker's list price if the purchase price is not available. The amendment adjusts the 
mill rates to minimize the loss of revenue to municipalities. 
Beginning in 2015, it 
charges the State Tax Assessor with determining mill rates that will generate an amount 
of municipal revenue equal to the amount collected in 2013 as adjusted by the Consumer 
Price Index. 
FISCAL ~OJE REQL1RED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/29/13 *ac 
LD 167 
LR 810(02) 
An Act To Base. the Motor Vehicle Excise Tax on the Purchase Price of the Motor Vehicle 
Fiscal Note for Bill as Amended by Committee Amendment "ft:..'(S -lq) 
Committee: Taxation 
Fiscal Note Required : Yes 
Fiscal Note 
State Mandate - Unfunded 
State Mandates 
Required Activity 
Unit Affected 
Beginning in 2015, municipalities will be required to annually update databases or 
Municipality 
other necessary resources to account for changes in the mill rates assessed on either 
the purchase price or 90% of the maker's list price, if the purchase price is 
unavailable, of certain motor vehicles registered. 
Local Cost 
Insignificant 
statewide 
The required local activities in this bill may represent a State mandate pursuant to the Constitution of Maine. Unless 
General Fund appropriations are provided to fund at least 90% of the additional costs or a Mandate Preamble is 
amended to the bill and two-thirds of the members of each House vote to exempt this mandate from the funding 
requirement, municipalities may not be required to implement these changes. 
Fiscal Detail and Notes 
The bill requires that the motor vehicle excise tax imposed on all motor vehicles and camper trailers be based upon the 
purchase price actually financed or paid by the consumer or 90% of the maker's list price if the purchase price is 
unavailable. Current law uses the maker's list price as the base to apply different mill rates depending on the age of 
each vehicle. The bill increases mill rates in each age bracket to compensate for the loss of revenue to municipalities. 
Maine Revenue Services indicates the new rates would produce excise tax collections within 2% of the amount 
collected under current law. Beginning in 2015 the State Tax Assessor is required to annually calculate mill rates for 
the excise tax based on purchase price that would generate the same amount of revenue that would have been 
generated based on the maker's list price and then adjust those mill rates for changes in the Consumer Price Index 
from the base year of2013. Since the effective date of this bill will most likely be sometime in late September, the 
base year of2013 would be impacted for approximately one quarter of the calendar year. Maine Revenue Services 
will incur minor costs to annually gather the necessary data, make the necessary calculations and disseminate the 
information to municipalities. 
LR0810(02) - Fiscal Note - Page 1 of 1