An Act To Allow a Motor Vehicle Excise Tax Credit for a Vehicle No Longer in Use
Maine Legislature, Session 127, LD 0444
Committee: Taxation
Sponsors: THIBODEAU, GILLWAY, COLLINS, CUSHING, HAMPER, HASKELL, WHITTEMORE, GOODE, TIMBERLAKE
Amends: 36 MRSA §1482

Legislative Document 
No. 444 
S.P. 173 
In Senate, February 24, 2015 
An Act To Allow a Motor Vehicle Excise Tax Credit for a Vehicle 
No Longer in Use 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by President THIBODEAU of Waldo. 
Cosponsored by Representative GILLWAY of Searsport and 
Senators: COLLINS of York, CUSHING of Penobscot, HAMPER of Oxford, HASKELL of 
Cumberland, McCORMICK of Kennebec, WHITTEMORE of Somerset, Representatives: 
GOODE of Bangor, TIMBERLAKE of Turner. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1482, sub-§5, as amended by PL 2011, c. 240, §13, is further 
amended to read: 
5.  Credits.  An owner or lessee who has paid the excise or property tax for a vehicle 
the ownership or registration of which is transferred, or that is subsequently totally lost by 
fire, theft or accident or totally junked or abandoned, in the same registration year, is 
entitled to a credit up to the maximum amount of the tax previously paid in that 
registration year for any one vehicle toward the tax for any number of vehicles, regardless 
of the number of transfers that may be required of the owner or lessee in that registration 
year.  The credit is available only if the vehicle's ownership is transferred, the vehicle is 
totally lost by fire, theft or accident, the vehicle is totally junked or abandoned, the use of 
the vehicle is totally discontinued or, in the case of a leased vehicle, the registration is 
transferred. 
A.  The credit must be given in any place in which the excise tax is payable. 
B.  For each transfer made in the same registration year, the owner shall pay $3 to the 
place in which the excise tax is payable. 
C.  During the last 4 months of the registration year, the credit may not exceed 1/2 of 
the maximum amount of the tax previously paid in that registration year for any one 
vehicle. 
D.  If the credit available under this subsection exceeds the amount transferred to 
another vehicle, a municipality may choose, but is not required to refund the excess 
amount.  If a municipality chooses to refund excess amounts it must do so in all 
instances where there is an excess amount. 
E.  For the purposes of this subsection, "owner" includes the surviving spouse of the 
owner. 
G.  For the purposes of this subsection, "totally discontinued" means that the owner 
has permanently discontinued all use of the vehicle except for selling, transferring 
ownership of, junking or abandoning that vehicle.  The owner of the vehicle must 
provide a signed statement attesting that use of the vehicle from which the credit is 
being transferred is totally discontinued.  If the owner who has totally discontinued 
use of a vehicle later seeks to register that vehicle, no excise tax credits may be 
applied with respect to the registration of that vehicle or any subsequent transfer of 
that vehicle's registration. 
SUMMARY 
Current law provides for a motor vehicle excise tax credit for the owner of a vehicle 
that is totally lost by fire, theft or accident or is totally junked or abandoned.  This bill 
clarifies that the motor vehicle excise tax credit is available only if the vehicle's 
ownership is transferred, the vehicle is totally lost by fire, theft or accident, the vehicle is 
totally junked or abandoned or the use of the vehicle is totally discontinued.  In the case 
of a leased vehicle, the credit is available only if the registration is transferred.  This bill 
requires the owner of the vehicle to provide a signed statement attesting that the vehicle 
from which the credit is being transferred is totally discontinued and states that if the 
owner who has totally discontinued use of a vehicle later seeks to register that vehicle, no 
excise tax credits may be applied with respect to the registration of that vehicle or any 
subsequent transfer of that vehicle's registration.