HP1339
LD 1905
First Regular Session - 123rd Legislature - Text: MS-Word, RTF or PDF LR 2478
Item 1
Bill Tracking Chamber Status

An Act To Compute the Automobile Excise Tax Based on the Actual Purchase Price

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 2001, c. 671, §32, 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, paragraph A 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): a sum equal to 24 mills on each dollar of the maker's list purchase price 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 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. Verification of the purchase price for the application of excise tax is determined by the initial bill of sale or the state sales tax document provided at the point of purchase. The initial bill of sale is that issued by the dealer to the initial purchaser of a new vehicle.

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 method of computing the excise tax that is levied on motor vehicles and camper trailers registered in the State.

With the exception of commercial motor vehicles and special mobile equipment, current law requires that the excise tax be based upon the maker's list price for the motor vehicle; the excise tax on commercial motor vehicles and special mobile equipment is based on the purchase price.

This bill requires that the excise tax for all motor vehicles and campers be based upon the purchase price of the vehicle. Either the original bill of sale or the state sales tax document may be used to verify the purchase price. The bill repeals the section of law dealing with the computation of excise taxes on commercial motor vehicles since all motor vehicles would be taxed in the same manner under this bill.


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