An Act To Provide a Source of Revenue To Preserve the Integrity of Maine's Transportation Infrastructure
Maine Legislature, Session 128, LD 1765
Committee: Taxation
Sponsors: PARRY, McLEAN
Amends: 23 MRSA §1651

Legislative Document
No. 1765
H.P. 1219
House of Representatives, January 3, 2018
An Act To Provide a Source of Revenue To Preserve the Integrity of 
Maine's Transportation Infrastructure
Submitted by the Department of Transportation pursuant to Joint Rule 203.
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PARRY of Arundel.
Cosponsored by Representative: McLEAN of Gorham.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  23 MRSA §1651, as amended by PL 1971, c. 593, §22, is further amended 
to read:
§1651.  Highway Fund established; purpose; revenue
To provide funds for the construction of state, state aid and town ways, for the 
maintenance of state and state aid highways, and interstate, intrastate and international 
bridges, and for other items of expenditure specified, there is established a fund to be 
known as the General Highway Fund.  This fund shall must include all fees received from 
the registration of motor vehicles and licensing of operators thereof,; all fees accruing to 
the Treasurer of State under Title 25, section 1502,; the receipts from the tax on internal 
combustion engine fuels,; 10% of the receipts from the sales and use tax imposed on 
transportation-related items pursuant to Title 36, section 1966; and all sums received on 
account of the department for permits to open highways, or from other sources, the 
disposition of which is not otherwise designated by law.  After payment from said 
General the Highway Fund of such sums for interest and retirement as are necessary to 
meet the provisions of bond issues for state highway and bridge construction, the 
remainder of said the fund shall must be segregated, apportioned and expended as 
provided by the Legislature.
Sec. 2.  36 MRSA §§1966 and 1967 are enacted to read:
§1966.  Transfer to Highway Fund
By the 20th day of each month, the assessor shall notify the State Controller and the 
Treasurer of State of the amount of revenue attributable to the tax collected under this 
Part in the previous month on sales of transportation-related items reduced by the transfer 
to the Local Government Fund corresponding to that tax revenue required by Title 30-A, 
section 5681.  When notified by the assessor, the State Controller shall transfer 10% of 
that amount to the Highway Fund.  As used in this section, "transportation-related items" 
means motor vehicles and products for the repair and maintenance of motor vehicles, 
including, but not limited to, tires, batteries and motor oil.
The assessor shall adopt routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A to implement this section.
§1967.  Transfer to Multimodal Transportation Fund
By the 20th day of each month, the assessor shall notify the State Controller and the 
Treasurer of State of the amount of revenue attributable to the tax collected under this 
Part in the previous month on sales of transportation-related items reduced by the transfer 
to the Local Government Fund corresponding to that tax revenue required by Title 30-A, 
section 5681.  When notified by the assessor, the State Controller shall transfer 2% of that 
amount to the Multimodal Transportation Fund established in Title 23, section 4210-B.  
As used in this section, "transportation-related items" means motor vehicles and products 
for the repair and maintenance of motor vehicles, including, but not limited to, tires, 
batteries and motor oil.
The assessor shall adopt routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A to implement this section.
SUMMARY
This bill diverts 10% of the sales tax revenue on the sale of motor vehicles and motor 
vehicle-related items from the General Fund to the Highway Fund and 2% of that revenue 
from the General Fund to the Multimodal Transportation Fund.