124th MAINE LEGISLATURE
		LD 195		LR 286(02)
	An Act To Base the Excise Tax on Vehicles on a Percentage of the Manufacturer's Suggested Retail Price
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$0	$31,714	$31,714	$31,714
	Highway Fund		$0	($126,405)	($126,405)	($126,405)
Appropriations/Allocations
	Other Special Revenue Funds		$0	($126,405)	($126,405)	($126,405)
Revenue
	General Fund		$0	($31,714)	($31,714)	($31,714)
	Highway Fund		$0	$126,405	$126,405	$126,405
	Other Special Revenue Funds		$0	($107,237)	($139,408)	($181,231)
Fiscal Detail and Notes
	This bill proposes to reduce excise tax payments paid on motor vehicles to 90% of the manufacturer's suggested retail price.  It will result in a decrease in General Fund revenue of $31,714 beginning in fiscal year 2010-11 related to excise tax paid by out of state residents.  It will also allow an Other Special Revenue Funds deallocation to the Secretary of State of $126,405 beginning in fiscal year 2010-11 since reimbursement to municipalities through the Municipal Excise Tax Reimbursement Fund will be decreased.  Under current statute, the amount remaining in this Fund at the end of the year is transferred to the Highway Fund.  Since payments deposited into the Municipal Excise Tax Reimbursement Fund through the International Registration Plan will not change under this legislation, but the reimbursement to municipalities will decrease, the amount transferred to the Highway Fund will increase Highway Fund revenues by $126,405 beginning in fiscal year 2010-11.  This bill will reduce motor vehicle excise tax revenues by 10% for unorganized territories and municipalities.