An Act To Ensure Sustainable Infrastructure Funding
Maine Legislature, Session 127, LD 0901
Committee: Taxation
Sponsors: McLEAN, BRYANT, HOGAN, POWERS, VALENTINO

Legislative Document 
No. 901 
H.P. 620 
House of Representatives, March 12, 2015 
An Act To Ensure Sustainable Infrastructure Funding 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative McLEAN of Gorham. 
Cosponsored by Representatives: BRYANT of Windham, HOGAN of Old Orchard Beach, 
POWERS of Naples, Senator: VALENTINO of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA c. 467 is enacted to read: 
CHAPTER 467 
INDEXING OF MOTOR FUEL TAX RATES 
§3331.  Annual adjustment of tax rates 
1.  Generally.  Beginning July 1, 2015, the excise tax imposed upon internal 
combustion engine fuel pursuant to section 2903, subsection 1 and the excise tax imposed 
upon distillates pursuant to section 3203, subsection 1-B are subject to a rate of 
adjustment pursuant to this section. On or about February 15th of each year, the State Tax 
Assessor shall calculate the adjusted rates by multiplying the rates in effect on the 
calculation date by a fuel economy index as computed in subsection 2. The adjusted rates 
must then be rounded to the nearest 1/10 of a cent and become effective on the first day 
of July immediately following the calculation. The assessor shall publish the adjusted fuel 
tax rates and shall provide all necessary forms and reports to suppliers, distributors and 
retail dealers. 
2.  Method of calculation; fuel economy index defined.  Except as provided in 
subsection 3, the fuel economy index is based on increases to federal fuel efficiency 
standards as set out in this subsection. 
A.  Starting with fiscal year 2016 and every fiscal year thereafter, the fuel economy 
index is the percentage change in the corporate average fuel economy standard 
established by the federal Department of Transportation, National Highway Traffic 
Safety Administration, averaged for all classes of passenger cars and light trucks, 
between the model year of the current fiscal year and the model year corresponding 
with the upcoming fiscal year. 
B.  The fuel economy index for fiscal year 2016 is 1.046. 
3.  Maximum.  The fuel economy index established in subsection 2 may not exceed 
the Chained Consumer Price Index as defined in section 5402, subsection 1 for the 
calendar year ending on the December 31st immediately preceding the calculation date, 
divided by the Chained Consumer Price Index for the previous calendar year. 
4.  Exclusion.  This section does not apply to internal combustion engine fuel 
purchased or used for the purpose of propelling jet or turbojet engine aircraft. 
5.  Legislative review.  Starting in 2021 and in each odd-numbered year thereafter, 
the Department of Transportation shall submit a bill by the cloture date established for 
departments and agencies that suspends any adjustment in fuel tax rates in the upcoming 
biennium resulting from the operation of this section. 
SUMMARY 
This bill establishes a system of indexing Maine’s motor fuel excise tax rates, tying 
adjusted rate increases to federal fuel efficiency standards.