Bill Summary – FastDemocracy

130th MAINE LEGISLATURE
                  FIRST REGULAR SESSION-2021
Legislative Document                                                                          No. 724
H.P. 535                                                       House of Representatives, March 5, 2021
           An Act To Base the Vehicle and Mobile Home Excise Tax on Actual
           Value
   Received by the Clerk of the House on March 3, 2021. Referred to the Committee on
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
                                                                                  ROBERT B. HUNT
                                                                                             Clerk
Presented by Representative ORDWAY of Standish.
                                       Printed on recycled paper
 Be it enacted by the People of the State of Maine as follows:
     Sec. 1. 29-A MRSA §533-A, sub-§3, ¶A, as amended by PL 2011, c. 646, §1, is
 further amended to read:
     A. Between July 1st and October 31st, the Secretary of State shall disburse to a
     participating municipality a sum equal to the difference in the amount of excise tax that
     would have been collected by that municipality in the prior fiscal year on each
     commercial motor vehicle or bus under Title 36, section 1482, subsection 1, paragraph
     C, subparagraph (3) or (4) using the manufacturer's suggested retail price from the
     amount of that excise tax actually collected by that municipality in the prior fiscal year
     based on the actual purchase price value. The Secretary of State shall provide
     supporting documentation to a municipality regarding the disbursement that
     municipality receives under this section.
     Sec. 2. 29-A MRSA §654, sub-§1, ¶B-1, as amended by PL 2001, c. 671, §13, is
 repealed.
     Sec. 3. 29-A MRSA §658, sub-§1, ¶E-1, as enacted by PL 2001, c. 18, §3, is
 repealed.
     Sec. 4. 36 MRSA §1481, sub-§7, as enacted by PL 1995, c. 440, §3 and affected
 by §5, is repealed.
     Sec. 5. 36 MRSA §1482, sub-§1, ¶B, as amended by PL 2011, c. 240, §10, is
 further amended to read:
     B. For the privilege of operating a mobile home upon the public ways, each mobile
     home to be so operated is subject to such excise tax as follows: A sum equal to 25 mills
     on each dollar of the maker's list price actual value for the first or current year of model,
     20 mills for the 2nd year, 16 mills for the 3rd year and 12 mills for the 4th year and
     succeeding years. The minimum tax is $15.
     Sec. 6. 36 MRSA §1482, sub-§1, ¶C, as amended by PL 2013, c. 263, §1, 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, paragraphs A and B 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), (4) or (5): a sum equal to 24 mills on each dollar of the
     maker's list price actual value 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.
                                          Page 1 - 130LR0700(01)
         (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 actual value 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. The initial bill of sale is that issued by the dealer to
         the initial purchaser of a new vehicle.
         (4) For buses manufactured in model year 2006 and after, the amount of excise
         tax due 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. The initial bill of sale is that issued by the dealer to the initial
         purchaser of a new vehicle.
         (5) For trucks or truck tractors registered for more than 26,000 pounds that have
         been reconstructed using a prepackaged kit that may include a frame, front axle or
         body but does not include a power train or engine and for which a new certificate
         of title is required to be issued, the amount of excise tax due is based on the maker's
         list price of the prepackaged kit.
     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.
     Sec. 7. 36 MRSA §1482, sub-§4, as amended by PL 2013, c. 263, §2, is repealed.
     Sec. 8. 36 MRSA §1482, sub-§4-A is enacted to read:
      4-A. Actual value. The actual value of a vehicle or mobile home must be obtained
 from sources approved by the State Tax Assessor. Actual value must be determined as of
 the time of delivery of the vehicle or mobile home to the owner.
                                        SUMMARY
     This bill changes the method of computing the excise tax that is levied on motor
 vehicles, including commercial motor vehicles, buses and camper trailers, and mobile
 homes registered in the State.
     With the exception of certain commercial motor vehicles and buses and special mobile
 equipment, current law requires that the excise tax be based upon the maker's list price for
 the motor vehicle or mobile home; the excise tax on certain commercial motor vehicles and
 buses and special mobile equipment is based on the purchase price. This bill requires that
 the excise tax for all motor vehicles, mobile homes and camper trailers be based upon the
 actual value of the vehicle or mobile home at the time of delivery to the owner, as
 determined by sources approved by the State Tax Assessor.
                                         Page 2 - 130LR0700(01)
     Current law requires the State to reimburse a municipality for the difference in the
 amount of excise tax that would have been collected by the municipality on each
 commercial motor vehicle or bus using the manufacturer's suggested retail price instead of
 the actual purchase price. This bill applies that requirement to all vehicles registered and
 taxed by the municipality using the actual value.
                                       Page 3 - 130LR0700(01)
Statutes affected: 
Bill Text LD 724, HP 535: 29-A.533, 29-A.654, 29-A.658, 36.1481, 36.1482