An Act To Adjust Fuel Taxes To Improve Sustainability
Maine Legislature, Session 126, LD 0614
Committee: Taxation
Sponsors: PEOPLES, BEAVERS, CAREY, GATTINE, GRAHAM, MONAGHAN-DERRIG, SAUCIER, THERIAULT
Amends: 36 MRSA §2903, 36 MRSA §3203

Legislative Document 
No. 614 
H.P. 433 
House of Representatives, February 21, 2013 
An Act To Adjust Fuel Taxes To Improve Sustainability 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative PEOPLES of Westbrook. 
Cosponsored by Representatives: BEAVERS of South Berwick, CAREY of Lewiston, 
GATTINE of Westbrook, GRAHAM of North Yarmouth, McLEAN of Gorham, 
MONAGHAN-DERRIG of Cape Elizabeth, SAUCIER of Presque Isle, THERIAULT of 
Madawaska. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §2903, sub-§1, as amended by PL 2011, c. 240, §24, is further 
amended to read: 
1.  Excise tax imposed.  Beginning July 1, 2008 and ending June 30, 2009, an An 
excise tax is imposed on internal combustion engine fuel used or sold in this State, 
including sales to the State or a political subdivision of the State, at the rate of 28.4¢ per 
gallon, except that the rate is 3.4¢ per gallon on internal combustion engine fuel bought 
or used for the purpose of propelling jet or turbojet engine aircraft as follows.  Beginning 
July 1, 2009, an excise tax is imposed on internal combustion engine fuel used or sold in 
this State, including sales to the State or a political subdivision of the State, at the rate of 
29.5¢ per gallon, except that the rate is 3.4¢ per gallon on internal combustion engine fuel 
bought or used for the purpose of propelling jet engine aircraft.  The tax rate provided by 
this subsection except the rate of tax imposed on fuel bought or used for the purpose of 
propelling jet engine aircraft is subject to an annual inflation adjustment pursuant to 
section 3321.  Any fuel containing at least 10% internal combustion engine fuel is subject 
to the tax imposed by this section. 
D.  Except as provided in paragraph E, the tax is the sum of: 
(1)  Fifteen cents per gallon; and 
(2)  Five percent of the retail value of the internal combustion fuel. 
E.  The tax is 3.4¢ per gallon on internal combustion engine fuel bought or used for 
the purpose of propelling jet engine aircraft. 
Sec. 2.  36 MRSA §3203, sub-§1-B, as amended by PL 2011, c. 240, §25, is 
further amended to read: 
1-B.  Generally; rates.  Except as provided in section 3204-A, beginning July 1, 
2008 and ending June 30, 2009, an excise tax is levied and imposed on all suppliers of 
distillates sold, on all retailers of low-energy fuel sold and on all users of special fuel 
used in this State for each gallon of distillate at the rate of 29.6¢ per gallon.  Beginning 
July 1, 2009, an excise tax is levied and imposed on all suppliers of distillates sold, on all 
retailers of low-energy fuel sold and on all users of special fuel used in this State for each 
gallon of distillate at the rate of 30.7¢ 15.6¢ per gallon plus 5% of the retail value of that 
gallon.  Tax rates for each gallon of low-energy fuel are based on the British Thermal 
Unit, referred to in this subsection as "BTU," energy content for each fuel as based on 
gasoline gallon equivalents or the comparable measure for distillates.  The gasoline 
gallon equivalent is the amount of alternative fuel that equals the BTU energy content of 
one gallon of gasoline.  In the case of distillates, the tax rate provided by this section is 
subject to annual inflation adjustment pursuant to section 3321.  For purposes of this 
subsection, "base rate" means the rate in effect for gasoline or diesel on July 1st of each 
year as indexed under section 3321.  A biodiesel blend containing less than 90% biodiesel 
fuel is subject to the rate of tax imposed on diesel. 
A.  This paragraph establishes the applicable BTU values and tax rates based on 
gasoline gallon equivalents. 
B.  This paragraph establishes the applicable BTU values and tax rates based on 
distillate gallon equivalents. 
C.  The conversion factors established in this paragraph must be used in converting to 
gasoline gallon equivalents. 
(1)  For compressed natural gas, BTUs per 100 standard cubic feet is 93,000, and 
there are 123.66 standard cubic feet per gasoline gallon equivalent. 
(2)  For hydrogen, BTUs per 100 standard cubic feet is 27,000, and there are 
425.93 standard cubic feet per gasoline gallon equivalent. 
(3)  For hydrogen compressed natural gas, BTUs per 100 standard cubic feet is 
79,800, and there are 144.11 standard cubic feet per gasoline gallon equivalent. 
Sec. 3.  Effective date.  This Act takes effect October 1, 2013. 
SUMMARY 
This bill changes the excise tax on gasoline, distillates and low-energy fuel from a 
fixed amount per gallon to a formula that includes a fixed amount per gallon plus 5% of 
the retail value of that gallon. 
Fuel type based on gasoline BTU content per gallon or 
gasoline gallon equivalent 
Tax rate formula (BTU 
value fuel/BTU value 
gasoline) x base rate 
gasoline 
Gasoline 
115,000 
100% x base rate 
Propane 
84,500 
73% x base rate 
Compressed Natural Gas 
(CNG) 
115,000 
100% x base rate 
Methanol 
56,800 
49% x base rate 
Ethanol 
76,000 
66% x base rate 
Hydrogen 
115,000 
100% x base rate 
Hydrogen Compressed 
Natural Gas 
115,000 
100% x base rate 
Fuel type based on diesel 
BTU content per gallon or 
gallon equivalent 
Tax rate formula (BTU 
value fuel/BTU value 
diesel) x base rate diesel 
Diesel 
128,400 
100% x base rate 
Liquefied Natural Gas 
(LNG) 
73,500 
57% x base rate 
Biodiesel 
118,300 
92% x base rate