An Act To
Maine Legislature, Session 128, LD 1687
Committee Amendment CA_A_S421 (Senate)

COMMITTEE AMENDMENT "A" to S.P. 623, L.D. 1687, Bill, "An Act To 
Amend the Laws Governing the Calculation of Excise Tax on Automobiles" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 l\1RSA §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) ~ 
..Jaor (6): 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, 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 
COMMITTEE AMENDMENT 
t} 
COMMITTEE AMENDMENT "A "to S.P. 623, L.D. 1687 
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 maker1s list price of the prepackaged kit. 
(6) For motor vehicles purchased after December 31, 2018 from a new vehicle 
dealer, as defined in Title 29-A, section 851, subsection 9, or a used car dealer, as 
defined in Title 29-A, section 851, subsection 11, the amount of excise tax due is 
based on the purchase price of the motor vehicle. Notwithstanding section 1481, 
subsection 7, for the purposes of this subparagraph, "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 bill of sale or the state sales tax 
document provided by the dealer at point of purchase. 
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 amendment provides that, for a motor vehicle purchased after December 31, 
2018, the motor vehicle excise tax must be based on the purchase price for the motor 
vehicle if purchased from a new vehicle dealer or a used car dealer. For other motor 
vehicles, the excise tax continues to be based on the maker's list price. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/28/18 feae!:.. 
LD 1687 
LR2509(02) 
An Act To Amend the Laws Governing the Calculation of Excise Tax· on Automobiles 
Fiscal Note for Bill as Amended by Committee Amendment 'A"' ( S -YJ\'\ 
Committee: Taxation 
. / 
Fiscal Note Required: Yes 
Fiscal Note 
Cuffent biennium revenue decrease - Municipalities 
Fiscal Detail and Notes 
Changing the excise tax calculation from the maker's list price to the purchase price for ce1iain sales would result in a 
loss of revenue to municipalities. The Maine Municipal Association has estimated the total statewide loss to all 
municipalities to be approximately $5,000,000 in the first year. 
LR2509(02) - Fiscal Note - Page 1 of 1