An Act To Base the Vehicle and Mobile Home Excise Tax on Actual Value
Maine Legislature, Session 130, LD 0724
Committee: Taxation
Sponsors: ORDWAY
Amends: 29-A MRSA §533-A, 29-A MRSA §654, 29-A MRSA §658, 36 MRSA §1481, 36 MRSA §1482

Legislative Document
No. 724
H.P. 535
House of Representatives, March 5, 2021
An Act To Base the Vehicle and Mobile Home Excise Tax on Actual 
Value
Received by the Clerk of the House on March 3, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative ORDWAY of Standish.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  29-A MRSA §533-A, sub-§3, ¶A, as amended by PL 2011, c. 646, §1, is 
further amended to read:
A.  Between July 1st and October 31st, the Secretary of State shall disburse to a 
participating municipality a sum equal to the difference in the amount of excise tax that 
would have been collected by that municipality in the prior fiscal year on each 
commercial motor vehicle or bus under Title 36, section 1482, subsection 1, paragraph 
C, subparagraph (3) or (4) using the manufacturer's suggested retail price from the 
amount of that excise tax actually collected by that municipality in the prior fiscal year 
based on the actual purchase price value.  The Secretary of State shall provide 
supporting documentation to a municipality regarding the disbursement that 
municipality receives under this section.
Sec. 2.  29-A MRSA §654, sub-§1, ¶B-1, as amended by PL 2001, c. 671, §13, is 
repealed.
Sec. 3.  29-A MRSA §658, sub-§1, ¶E-1, as enacted by PL 2001, c. 18, §3, is 
repealed.
Sec. 4.  36 MRSA §1481, sub-§7, as enacted by PL 1995, c. 440, §3 and affected 
by §5, is repealed.
Sec. 5.  36 MRSA §1482, sub-§1, ¶B, as amended by PL 2011, c. 240, §10, is 
further amended to read:
B.  For the privilege of operating a mobile home upon the public ways, each mobile 
home to be so operated is subject to such excise tax as follows: A sum equal to 25 mills 
on each dollar of the maker's list price actual value for the first or current year of model, 
mills for the 2nd year, 16 mills for the 3rd year and 12 mills for the 4th year and 
succeeding years. The minimum tax is $15.
Sec. 6.  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, including a commercial motor 
vehicle as defined in Title 29-A, section 101, subsection 17, paragraphs A and B and 
special mobile equipment as defined in Title 29-A, section 101, subsection 70, 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 actual value 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 actual value 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. 7.  36 MRSA §1482, sub-§4, as amended by PL 2013, c. 263, §2, is repealed.
Sec. 8.  36 MRSA §1482, sub-§4-A is enacted to read:
4-A.  Actual value.  The actual value of a vehicle or mobile home must be obtained 
from sources approved by the State Tax Assessor.  Actual value must be determined as of 
the time of delivery of the vehicle or mobile home to the owner.
SUMMARY
This bill changes the method of computing the excise tax that is levied on motor 
vehicles, including commercial motor vehicles, buses and camper trailers, and mobile 
homes 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 or mobile home; the excise tax on certain commercial motor vehicles and 
buses and special mobile equipment is based on the purchase price.  This bill requires that 
the excise tax for all motor vehicles, mobile homes and camper trailers be based upon the 
actual value of the vehicle or mobile home at the time of delivery to the owner, as 
determined by sources approved by the State Tax Assessor.
Current law requires the State to reimburse a municipality for the difference in the 
amount of excise tax that would have been collected by the municipality on each 
commercial motor vehicle or bus using the manufacturer's suggested retail price instead of 
the actual purchase price.  This bill applies that requirement to all vehicles registered and 
taxed by the municipality using the actual value.