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: Taxation
Sponsors: SIROCKI, AUSTIN, DUNPHY, FARRIN, HARLOW, O'CONNOR, TIMBERLAKE, TUELL, WHITTEMORE
Amends: 29-A MRSA §533-A, 36 MRSA §1482

Legislative Document 
No. 94 
H.P. 77 
House of Representatives, January 16, 2015 
An Act To Base the Excise Tax Imposed on the Purchase of a Motor 
Vehicle on the Price Paid 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative SIROCKI of Scarborough. 
Cosponsored by Representatives: AUSTIN of Gray, DUNPHY of Embden, FARRIN of 
Norridgewock, HARLOW of Portland, O'CONNOR of Berwick, TIMBERLAKE of Turner, 
TUELL of East Machias, Senator: WHITTEMORE of Somerset. 
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 2011, c. 646, §1, 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 §1482, sub-§1, ¶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 purchase price in 
the original year of title 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 a used motor vehicle or camper trailer, if the initial 
bill of sale or the state sales tax document provided at point of purchase is not 
available, the excise tax due is based on the maker's list price. 
(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 
Under current law, the excise tax imposed on the sale of motor vehicles, except for 
commercial motor vehicles manufactured in model year 1996 and after and buses 
manufactured in model year 2006 and after, and camper trailers is based on the maker's 
list price of the motor vehicle or camper trailer. 
This bill requires the excise tax on motor vehicles and camper trailers to be based on 
the purchase price of the motor vehicle or camper trailer.  The purchase price is 
determined for new motor vehicles and camper trailers based on the initial bill of sale or 
state sales tax document.  For used motor vehicles and camper trailers, if the initial bill of 
sale or state sales tax document is not available, the excise tax is based on the maker's list 
price. 
Current law requires the State to reimburse a municipality for the difference in excise 
tax collected due to the tax being imposed on the purchase price, rather than the maker's 
list price, of a commercial motor vehicle or bus.  This bill extends that reimbursement 
requirement to the difference in excise tax collected on all motor vehicles based on the 
purchase price.