An Act To Provide a Source of Revenue To Preserve the Integrity of Maine's Transportation Infrastructure

Sec. 1. 23 MRSA §1651,  as amended by PL 1971, c. 593, §22, is further amended to read:

§ 1651. Highway Fund established; purpose; revenue

To provide funds for the construction of state, state aid and town ways, for the maintenance of state and state aid highways, and interstate, intrastate and international bridges, and for other items of expenditure specified, there is established a fund to be known as the General Highway Fund. This fund shall must include all fees received from the registration of motor vehicles and licensing of operators thereof , ; all fees accruing to the Treasurer of State under Title 25, section 1502 , ; the receipts from the tax on internal combustion engine fuels , ; 10% of the receipts from the sales and use tax imposed on transportation-related items pursuant to Title 36, section 1966; and all sums received on account of the department for permits to open highways, or from other sources, the disposition of which is not otherwise designated by law. After payment from said General the Highway Fund of such sums for interest and retirement as are necessary to meet the provisions of bond issues for state highway and bridge construction, the remainder of said the fund shall must be segregated, apportioned and expended as provided by the Legislature.

Sec. 2. 36 MRSA §§1966 and 1967  are enacted to read:

§ 1966.  Transfer to Highway Fund

By the 20th day of each month, the assessor shall notify the State Controller and the Treasurer of State of the amount of revenue attributable to the tax collected under this Part in the previous month on sales of transportation-related items reduced by the transfer to the Local Government Fund corresponding to that tax revenue required by Title 30-A, section 5681. When notified by the assessor, the State Controller shall transfer 10% of that amount to the Highway Fund. As used in this section, "transportation-related items" means motor vehicles and products for the repair and maintenance of motor vehicles, including, but not limited to, tires, batteries and motor oil.

The assessor shall adopt routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A to implement this section.

§ 1967.  Transfer to Multimodal Transportation Fund

By the 20th day of each month, the assessor shall notify the State Controller and the Treasurer of State of the amount of revenue attributable to the tax collected under this Part in the previous month on sales of transportation-related items reduced by the transfer to the Local Government Fund corresponding to that tax revenue required by Title 30-A, section 5681. When notified by the assessor, the State Controller shall transfer 2% of that amount to the Multimodal Transportation Fund established in Title 23, section 4210-B. As used in this section, "transportation-related items" means motor vehicles and products for the repair and maintenance of motor vehicles, including, but not limited to, tires, batteries and motor oil.

The assessor shall adopt routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A to implement this section.

SUMMARY

This bill diverts 10% of the sales tax revenue on the sale of motor vehicles and motor vehicle-related items from the General Fund to the Highway Fund and 2% of that revenue from the General Fund to the Multimodal Transportation Fund.