An Act To Create a Diesel Fuel Tax Differential
Maine Legislature, Session 129, LD 0466
Committee: Transportation
Sponsors: TEPLER, CHIPMAN, COLLINGS, NEWELL, SHEATS
Amends: 36 MRSA §3203, 36 MRSA §3203-C

Legislative Document
No. 466
H.P. 350
House of Representatives, January 29, 2019
An Act To Create a Diesel Fuel Tax Differential
Reference to the Committee on Transportation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative TEPLER of Topsham.
Cosponsored by Senator CHIPMAN of Cumberland and
Representatives: COLLINGS of Portland, McLEAN of Gorham, NEWELL of the 
Passamaquoddy Tribe, SHEATS of Auburn.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §3203, sub-§1-C is enacted to read:
1-C.  Diesel fuel tax differential.  In addition to the tax imposed on diesel fuel under 
subsection 1-B, beginning November 1, 2019, an additional excise tax of 5¢ per gallon is 
imposed on all diesel fuel sold or used in this State.  This subsection is repealed 
November 1, 2022.
Sec. 2.  36 MRSA §3203, sub-§4-A is enacted to read:
4-A.  Diesel fuel tax differential accounting; report.  Taxes collected under 
subsection 1-C and credited to the Highway Fund under subsection 4 must be separately 
accounted for and deposited into a special account within the Highway Fund that may be 
used only for the construction, reconstruction, maintenance and repair of public highways 
and bridges.
Sec. 3.  36 MRSA §3203-C, as amended by PL 2009, c. 652, Pt. B, §8 and 
affected by §9, is further amended to read:
§3203-C.  Inventory tax
On the date that any increase in the rate of tax imposed under this chapter takes 
effect, an inventory tax is imposed upon all distillates that are held in inventory by a 
supplier, wholesaler or retail dealer as of the end of the day prior to that date on which the 
tax imposed by section 3203, subsection subsections 1-B and 1-C has been paid.  The 
inventory tax is computed by multiplying the number of gallons of tax-paid fuel held in 
inventory by the difference between the tax rate already paid and the new tax rate.  
Suppliers, wholesalers and retail dealers that hold such tax-paid inventory shall make 
payment of the inventory tax on or before the 15th day of the next calendar month, 
accompanied by a form prescribed and furnished by the State Tax Assessor.  In the event 
of a decrease in the tax rate, the supplier, wholesaler or retail dealer is entitled to a refund 
or credit, which must be claimed on a form designed and furnished by the assessor.
Sec. 4.  Report; legislation.  The Commissioner of Transportation shall submit a 
report to the joint standing committee of the Legislature having jurisdiction over 
transportation matters by March 1, 2022 identifying the amount of revenue collected 
under subsection 1-C and the purposes for which the revenue was or will be used.  The 
committee may submit legislation to the Second Regular Session of the 130th Legislature 
to retain, repeal or amend provisions relating to the diesel fuel tax differential.
SUMMARY
This bill imposes an additional 5¢ per gallon fuel tax on diesel fuel and requires that 
revenue from the tax be used only for construction, reconstruction, maintenance and 
repair of public highways and bridges.  The additional tax is repealed on November 1, 
2022.  The Commissioner of Transportation is required to submit a report to the joint 
standing committee of the Legislature having jurisdiction over transportation matters by 
March 1, 2022 identifying the amount of revenue collected and the purposes for which 
the revenue was or will be used.  The committee is authorized to submit legislation to the 
relating to the diesel fuel tax differential.