An Act To Lower the Maine Motor Vehicle Excise Tax
Maine Legislature, Session 128, LD 0026
Committee: Taxation
Sponsors: CEBRA, COLLINS, HARRINGTON, HARVELL, ORDWAY, SKOLFIELD, STEWART
Amends: 36 MRSA §1482

Legislative Document
No. 26
H.P. 27
House of Representatives, January 10, 2017
An Act To Lower the Maine Motor Vehicle Excise Tax
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative CEBRA of Naples.
Cosponsored by Senator COLLINS of York and
Representatives: HARRINGTON of Sanford, HARVELL of Farmington, ORDWAY of 
Standish, SKOLFIELD of Weld, STEWART of Presque Isle.
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 price for the first 
or current year of model, 17 1/2 mills for the 2nd year, 13 1/2 mills for the 3rd year, 
mills for the 4th year, 6 1/2 mills for the 5th year and 4 mills for the 6th and 
succeeding years.  For registration years beginning on or after January 1, 2018, the 
mill rates specified in this paragraph are reduced as provided in paragraph E.  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. 
(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. 
Sec. 2.  36 MRSA §1482, sub-§1, ¶E is enacted to read: 
E.  For registration years beginning on or after January 1, 2018, the mill rates 
specified in paragraph C are reduced as follows: 
(1)  For registration years beginning in 2018, the mill rates specified in paragraph 
C are reduced by 10%; 
(2)  For registration years beginning in 2019, the mill rates specified in paragraph 
C are reduced by 20%; 
(3)  For registration years beginning in 2020, the mill rates specified in paragraph 
C are reduced by 30%; 
(4)  For registration years beginning in 2021, the mill rates specified in paragraph 
C are reduced by 40%; and 
(5)  For registration years beginning on or after January 1, 2022, the mill rates 
specified in paragraph C are reduced by 50%. 
SUMMARY 
This bill reduces motor vehicle excise tax mill rates by 10% each year beginning with 
2018 registration years until the rates reach 50% of the current rates in 2022 and 
subsequent years.