An Act To Amend the Laws Governing the Calculation of Excise Tax on Automobiles
Maine Legislature, Session 128, LD 1687
Committee: Taxation
Sponsors: DILL, STANLEY, DAVIS, DIAMOND, JACKSON, MASON, MIRAMANT, NADEAU, TUELL
Amends: 36 MRSA §1482

Legislative Document
No. 1687
S.P. 623
In Senate, December 22, 2017
An Act To Amend the Laws Governing the Calculation of Excise 
Tax on Automobiles
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Received by the Secretary of the Senate on December 19, 2017.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator DILL of Penobscot.  (BY REQUEST)
Cosponsored by Representative STANLEY of Medway and
Senators: DAVIS of Piscataquis, DIAMOND of Cumberland, JACKSON of Aroostook, 
MASON of Androscoggin, MIRAMANT of Knox, Representatives: NADEAU of Winslow, 
TUELL of East Machias.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  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 
for the first or current year of model, 17 1/2 mills on each dollar of the maker's list 
price for the 2nd year, 13 1/2 mills on each dollar of the maker's list price for the 3rd 
year, 10 mills on each dollar of the maker's list price for the 4th year, 6 1/2 mills on 
each dollar of the maker's list price for the 5th year and 4 mills on each dollar of the 
maker's list price 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.  Notwithstanding section 1481, 
subsection 7, for the purposes of this paragraph, "purchase price" means the amount 
of money financed or paid by the consumer after application of any trade-ins, rebates 
or discounts or offers or promises that the consumer receive back all or a portion of 
the price paid.  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.
(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.
(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 bill changes the method of computing the excise tax that is levied on motor 
vehicles and camper trailers registered in the State.
With the exception of certain commercial motor vehicles and buses and special 
mobile equipment, current law requires that the excise tax be based upon the maker's list 
price for the motor vehicle.  This bill requires that the excise tax on motor vehicles and 
camper trailers be based on the purchase price of the vehicle for the first year and on the 
maker's list price for all succeeding years.  Either the original bill of sale or the state sales 
tax document may be used to verify the purchase price.