Sec. 1. 36 MRSA §1482, sub-§5, as amended by PL 1997, c. 175, §1, is further amended to read:

5. Credits or refunds. Any owner or lessee who has paid the excise or property tax for a vehicle the ownership or registration of which is transferred, or that is subsequently totally lost by fire, theft or accident or that is subsequently totally junked or abandoned, in the same calendar year or registration year, is entitled to a refund to the maximum amount of the tax previously paid in that year or period or a credit to the maximum amount of the tax previously paid in that year or period for any one vehicle toward the tax for any number of vehicles, regardless of the number of transfers that may be required of the owner or lessee in the same calendar year or registration year. The owner may choose to receive a refund or a credit but not both.

A. The credit or refund must be given in any place in which the excise tax is payable.

B. For each transfer made in the same calendar year or registration year, the owner shall pay $3 to the place in which the excise tax is payable.

C. From November 1st to the last day of February the credit or refund may not exceed 1/2 the amount of the maximum tax, except that for automobiles, trucks and truck tractors, during the last 4 months of the registration year, the credit or refund may not exceed 1/2 the maximum tax.

D. No portion of any excise tax once paid may be repaid to any person by reason of the transfer of vehicles or discontinuance of the use of a vehicle.

E. For the purposes of this subsection, the term, "owner" includes the surviving spouse.

SUMMARY

Current law allows a person who registers and pays the excise tax on a vehicle that is subsequently transferred or destroyed to receive a prorated credit of the tax towards the registration of another vehicle.

This bill allows the person to receive a prorated refund or credit of the excise tax but not both.