An Act To Create a Rental Fleet Registration Program and Equalize the Tax Rate Imposed on Rental Vehicles
Maine Legislature, Session 130, LD 1890
Committee: Transportation
Sponsors: PERRY
Amends: 29-A MRSA §412, 29-A MRSA §1752-A, 36 MRSA §1752, 36 MRSA §1811

Legislative Document
No. 1890
H.P. 1400
House of Representatives, January 5, 2022
An Act To Create a Rental Fleet Registration Program and Equalize 
the Tax Rate Imposed on Rental Vehicles
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Transportation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  29-A MRSA §412 is enacted to read:
§412.  Rental fleet registration
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Rental fleet" means a fleet containing more than 25 rental fleet vehicles.
B.  "Rental fleet vehicle" means a motor vehicle that is:
(1)  Owned by a person engaged in the business of renting motor vehicles;
(2)  Offered for rental without a hired driver under a rental agreement; and
(3)  Designated by the registered owner of the motor vehicle as a rental fleet vehicle 
at the time of registration.
2.  Program established.  A rental fleet registration program is established to provide 
a means of issuing certificates of registration for rental fleet vehicles.  The Secretary of 
State shall adopt rules to administer the rental fleet registration program.  Rules adopted 
under this subsection must provide for:
A.  An application form;
B.  The payment of fees;
C.  The addition of rental fleet vehicles to and the removal of rental fleet vehicles from 
a rental fleet; 
D.  The issuance of certificates of registration for rental fleet vehicles; and
E.  The revocation of a certificate of registration for noncompliance with this section.
3.  License plate.  The Secretary of State shall determine the design for a rental fleet 
license plate. The design must include distinctive colors and graphics. The design may 
indicate that the plate does not have an expiration date.  The design may not include an 
expiration date.
4.  Application.  The owner of a rental fleet may apply to the Secretary of State to 
register rental fleet vehicles under this section.  The application for registration under this 
section must be in a form prescribed by the Secretary of State and must include:
A.  For each rental fleet vehicle, the information required in section 401, subsection 2;
B.  The election of a common registration renewal month for the rental fleet; and
C.  For each rental fleet vehicle, the municipality to which the excise tax described in 
Title 36, section 1482 is to be paid.
5.  Fees.  A registration fee must accompany a registration application submitted under 
this section. The fee is in an amount equal to the applicable annual registration fee required 
by section 501 or 504, as applicable.  In addition to the annual registration fee, an annual 
$2.50 inspection exemption fee applies to a rental fleet vehicle exempt from inspection 
under section 1752-A.  A fee collected under this subsection must be credited to the General 
Highway Fund.
6.  Approval.  The Secretary of State shall approve an application for the registration 
of rental fleet vehicles that conforms to the rules adopted pursuant to this section and is 
accompanied by the appropriate fee.  On approval of an application for the registration of 
rental fleet vehicles, the Secretary of State shall:
A.  Record the registration of each rental fleet vehicle described in the registration 
application;
B.  Assign the owner of the rental fleet a rental fleet number;
C.  Issue a certificate of registration that contains the name and address of the owner 
of the rental fleet, the rental fleet number assigned under paragraph B and the 
registration renewal month; and
D.  Issue a set of 2 rental fleet license plates for each registered rental fleet vehicle.
7.  Renewal; revocation.  The owner of a rental fleet shall renew the registration 
together with the payment of the applicable registration fees annually on or before the last 
day of the registration renewal month assigned to the rental fleet.  If an owner fails to renew 
the registration as provided by this subsection, the Secretary of State shall revoke the 
registration.
8.  Validity.  A certificate of registration and rental fleet license plates issued under 
this section are valid as long as the vehicle is maintained as part of the rental fleet and the 
owner renews the registration annually.  Display of the rental fleet license plates is prima 
facie evidence that a vehicle has been registered in accordance with this section.
9.  Transfer.  If an owner removes a rental fleet vehicle registered under this section 
from a rental fleet, the owner may transfer the registration, including the certificate of 
registration and the rental fleet license plates, to another rental fleet vehicle, which must be 
registered within the same registration year.  The fee for transferring a registration under 
this subsection is $8.  If the registration fee for the vehicle to which the registration is 
transferred is greater than the fee for the vehicle that was removed, the owner shall pay the 
difference when registering the vehicle to which the registration was transferred.  A 
registration transferred under this subsection is subject to reimbursement in the same 
manner as described in Title 36, section 2015, subsection 2.
10.  Compliance with International Registration Plan.  Registration under this 
section has no effect on a motor vehicle owner's responsibilities under the International 
Registration Plan described in section 531.
11.  Rules.  The Secretary of State shall adopt rules to implement this section.  Rules 
adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 
375, subchapter 2-A.
Sec. A-2.  29-A MRSA §1752-A is enacted to read:
§1752-A.  Temporary exemption
A rental fleet vehicle registered under section 412 is exempt from inspection until the 
last day of the registration renewal month of the 3rd year following the year the vehicle 
was manufactured, or until the date the vehicle is removed from the rental fleet, whichever 
is earlier.  After the exemption period has expired or the vehicle has been removed from 
the rental fleet, the vehicle is subject to inspection in accordance with section 1751.  
Display of rental fleet license plates creates a presumption that the vehicle is exempt from 
inspection.
PART B
Sec. B-1.  36 MRSA §1752, sub-§11, ¶B, as amended by PL 2021, c. 181, Pt. B, 
§§2 and 3, is further amended by amending subparagraph (3) to read:
(3)  The sale, to a person primarily engaged in the business of renting automobiles, 
of automobiles, integral parts of automobiles or accessories to automobiles, for 
rental or for use in an automobile rented for a period of less than one year an 
automobile or of a truck or van with a gross vehicle weight of less than 26,000 
pounds for the purpose of rental for a period of less than one year or of integral 
parts or accessories to an automobile or to a truck or van with a gross vehicle 
weight of less than 26,000 pounds;
Sec. B-2.  36 MRSA §1752, sub-§14, ¶A, as amended by PL 2019, c. 401, Pt. B, 
§5, is further amended by amending subparagraph (4) to read:
(4)  In the case of the lease or rental for a period of less than one year of an 
automobile or of a pickup truck or van with a gross vehicle weight of less than 
26,000 pounds rented from a person primarily engaged in the business of renting 
automobiles, the value is the total rental charged to the lessee and includes, but is 
not limited to, maintenance and service contracts, drop-off or pick-up fees, airport 
surcharges, mileage fees and any separately itemized charges on the rental 
agreement to recover the owner's estimated costs of the charges imposed by 
government authority for title fees, inspection fees, local excise tax and agent fees 
on all vehicles in its rental fleet registered in the State.  All fees must be disclosed 
when an estimated quote is provided to the lessee; and
Sec. B-3.  36 MRSA §1752, sub-§17-B, as amended by PL 2013, c. 156, §2, is 
further amended to read:
17-B.  Taxable service.  "Taxable service" means the rental of living quarters in a 
hotel, rooming house or tourist or trailer camp; the transmission and distribution of 
electricity; the rental or lease of an automobile, a camper trailer, or a motor home, as 
defined in Title 29‑A, section 101, subsection 40; the rental or lease of a pickup truck or 
van with a gross vehicle weight of less than 26,000 pounds from a person primarily engaged 
in the business of renting automobiles; the sale of an extended service contract on an 
automobile or truck that entitles the purchaser to specific benefits in the service of the 
automobile or truck for a specific duration; and the sale of prepaid calling service.
Sec. B-4.  36 MRSA §1811, sub-§1, ¶D, as amended by PL 2019, c. 607, Pt. B, 
§5, is further amended by amending subparagraph (4), division (b) to read:
(b)  A pickup truck or van with a gross vehicle weight of less than 26,000 
pounds rented from a person primarily engaged in the business of renting 
automobiles; or
SUMMARY
Part A of this bill establishes a registration program for rental fleet vehicles that 
includes:
1.  A common registration renewal month;
2.  A unique owner registration number;
3.  Required annual renewal;
4.  The issuance of certificates of registration;
5.  Distinctive license plates;
6.  A temporary exemption from inspection requirements; and
7.  The ability to transfer and remove rental fleet vehicles.
Part A also specifies that participation in the rental fleet vehicle registration program 
has no effect on the requirements of the International Registration Plan.
Part B of the bill addresses the treatment of vehicles owned by a rental car company 
for purposes of the sales and use tax.  Current law requires that a rental car company that 
purchases a truck pay sales tax on that truck but is not required to charge sales tax on the 
charge for renting the truck to a consumer.  Part B makes such a purchase exempt from the 
sales tax and makes the rental subject to the rate of a taxable service.  Part B also makes 
technical corrections to the tax law regarding trucks.