Sec. 3. 36 MRSA §4832, sub-§1-B is enacted to read:

1-B__Tires.__A fee in the amount identified in this subsection is imposed on the retail sale in this State of new tires.__A fee in the same amount is imposed on the storage, use or other consumption in this State of tires purchased new in this State by the user or purchased outside the State by the user unless the fee imposed by this section has been paid.

A.__In 2005 and 2006, a fee in the amount of $1 per tire is imposed.

B.__In 2007, a fee in the amount of 75__per tire is imposed.

C.__In 2008, a fee in the amount of 50__per tire is imposed.

D.__In 2009, a fee in the amount of 25__per tire is imposed.

Sec. 4. 36 MRSA §4832, sub-§2, as amended by PL 1991, c. 546, §31, is further amended to read:

2. Exemption. Transactions that, under the laws of this State, are not subject to taxation in accordance with Part 3 are exempt from the fee fees imposed by subsection subsections 1 and 1-B. Sales of any items that occur as part of a sale of a trailer, a mobile home or any motorized vehicle are exempt from the fee fees imposed by subsection subsections 1 and 1-B.

Sec. 5. 36 MRSA §4832, sub-§3 is enacted to read:

3.__Repeal.__Subsection 1-B is repealed January 1, 2010.

SUMMARY

Currently, a fee is imposed on the retail sale of new tires in the amount of $1 per tire. This bill phases out that fee and repeals the fee beginning January 1, 2010.