An Act to Adjust Motor Vehicle Excise Tax Rates
Maine Legislature, Session 131, LD 1168
Committee: Taxation
Sponsors: PERRY, GRAMLICH
Amends: 36 MRSA §1482

Legislative Document
No. 1168
H.P. 740
House of Representatives, March 14, 2023
An Act to Adjust Motor Vehicle Excise Tax Rates
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
Cosponsored by Representative GRAMLICH of Old Orchard Beach.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  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 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 35 mills on each dollar of the maker's list price reduced by $15,000 
for the first or current year of model, 17 1/2 33 mills for the 2nd year, 13 1/2 31 mills 
for the 3rd year, 10 28 mills for the 4th year, 6 1/2 25 mills for the 5th year and 4, 22 
mills for the 6th year, 19 mills for the 7th year, 16 mills for the 8th year, 13 mills for 
the 9th year and 10 mills for the 10th 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 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.
SUMMARY
This bill changes the excise tax on motor vehicles and camper trailers from a 6-year 
phase-down of the tax from 24 mills to 4 mills to a 10-year phase-down of the tax from 35 
mills to 10 mills and exempts from taxation the first $15,000 of the vehicle's value that is 
used to calculate the tax.