An Act To Base the Excise Tax Imposed on the Purchase of a Motor Vehicle on the Price Paid
Maine Legislature, Session 127, LD 0094
Committee Amendment CA_A_H327 (House)
Amends: 36 MRSA §1482

COMMITTEE AMENDMENT" A 
"to H.P. 77, L.D. 94, Bill, "An Act To Base the 
Excise Tax Imposed on the Purchase of a Motor Vehicle on the Price Paid" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Reduce the Motor Vehicle Excise Tax Base' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §1482, sub-§l, ~C, as amended by PL 2013, c. 263, §1, 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), 
(4) or (5): a sum equal to 24 mills on each dollar of the maker's list price for the first 
or current year of model, 17 112 mills for the 2nd year, 13 112 mills for the 3rd year, 
mills for the 4th year, 6 112 mills for the 5th year and 4 mills for the 6th and 
succeeding years. Beginning January 1, 2017, the excise tax is imposed on 90% of 
the maker's list price. 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 
COMMITTEE AMENDMENT 
· J.. e",j. 
t··· ~. 
COMMITTEE AMENDMENT "A "toRP. 77,L.D.94 
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. 
(5) For trucks or truck tractors registered for more than 26,000 pounds that have 
been reconstructed using a prepackaged kit that may include a frame, front axle 
or body but does not include a power train or engine and for which a new 
certificate of title is required to be issued, the amount of excise tax due is based 
on the maker's list price of the prepackaged kit. 
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 amendment replaces the bill and changes the title. The amendment provides 
that, beginning January 1,2017, the motor vehicle excise tax is imposed on 90% of the 
maker's list price. 
COMMITTEE AMENDMENT 
Approved: 05/30/15 
Mac::.. 
LD94 
LR 152(02) 
An Act To Base the Excise Tax Imposed on the Purchase of a Motor Vehicle on the Price Paid 
Fiscal Note for Bill as Amen.ded by Co~mittee Amendment ,~,( /1-J). 7) 
. 
CommIttee: TaxatIOn 
Net Cost (Savings) 
General Fund 
Highway Fund 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
General Fund 
Highway Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
$0 
$0 
$0 
$0 
$0 
$0 
FY 2016-17 
$15,000 
$0 
$0 
($15,000) 
$0 
($66,500) 
Projections 
FY 2017-18 
$30,000 
($130,000) 
($130,000) 
($30,000) 
$130,000 
($133,000) 
Projections 
FY 2018-19 
$30,000 
($260,000) 
($260,000) 
($30,000) 
$260,000 
($133,000) 
This bill proposes to reduce excise tax payments paid on motor vehicles by basing them on 90% of the maker's list 
price effective January 1,2017. This will decreas~ General Fund revenue by $15,000 in fiscal year 2016-17 related to 
excise tax paid by out of state residents. It will also result in a decrease in Other Special Revenue Funds revenue to 
the Department of Administrative and Financial Services of $66,500 in fiscal year 2016-17 related to excise tax paid 
in the unorganized territories. It will also allow an Other Special Revenue Funds deallocation to the Secretary of State 
of $130,000 in fiscal year 2017-18 since reimbursement to municipalities through the Municipal Excise Tax 
Reimbursement Fund will be decreased. Under current statute, the amount remaining in this fund at the end of the 
year is transferred to the Highway Fund. Since payments deposited into the Municipal Excise Tax Reimbursement 
Fund through the International Registration Plan will not change under this legislation, but the reimbursement to 
municipalities will decrease, the amount transferred to the Highway Fund will increase Highway Fund revenues by 
$130,000 in fiscal year 2017-18. 
It is estimated that excise tax revenues to municipalities will decrease by approximately $21 million annually. 
LRO 152(02) - Fiscal Note - Page 1 of 1