excise tax.pdf

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EXCISE TAX mil rate Vehicle EXCISE TAX EXCISE TAX EXCISE TAX year MSRP

 
EXCISE TAX 
This brochure is intended solely for 
informational purposes and has been 
designed to provide the public with 
answers to some of the most commonly 
asked questions regarding the Motor 
Vehicle Excise Tax.  
The Maine State Statutes regarding excise 
tax can be found in Title 36, Section 1482. 
 
 
 
 
 
PLEASE NOTE 
The State of Maine Property Tax Division 
only provides quotes to the Municipal 
Excise Tax Collector and not to 
individuals. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property Tax Division 
14 Edison Drive, PO Box 9106 
Augusta, Maine 04332-9106 
Phone (207) 287-2012 
WWW.STATE.ME.US/REVENUE/PROPERTYTAX/
HOMEPAGE
 
 
EXCISE TAX 
Maine Revenue Services 
Informational Brochure 
 
 
WHAT IS EXCISE TAX? 
Excise Tax is an annual tax that must be 
paid prior to registering a vehicle. Except 
for a few statutory exemptions, all vehicles 
registered in the State of Maine are subject 
to the excise tax. 
Excise Tax is defined by State Statute as a 
tax levied annually for 
the privilege of 
operating a motor 
vehicle or camper 
trailer on the public 
ways.   
 
 
WHERE DO I PAY THE  
EXCISE TAX? 
Excise tax is paid at the local town office 
where the owner of the vehicle resides. 
When a vehicle needs to be registered, an 
excise tax is collected prior to the 
registration.  
 
HOW MUCH IS THE EXCISE TAX
The amount of tax you pay depends on two
things: 
1. The age of the vehicle 
2. MSRP (manufacturers suggested 
retail price) 
Newer vehicles will generally be m
expensive to excise than older vehi
 
HOW IS THE EXCISE TAX
CALCULATED? 
Excise Tax is calculated by multiplying
MSRP by the mil rate as shown below
The rates drop back on January 1st eac
year. 
 
 
 
 
 
 car with an 
 pay $263.25. 
263.25) 
 TAX GO? 
e excise tax can 
 
WHY IS THE TAX BASED ON 
MSRP? 
Excise Tax was designed with equity in mind. 
In 1925, this tax was enacted as a Maine Law. 
At that time, the Legislature decided that the 
fairest tax assessment would be based on 
what the manufacturer suggests it sell for.
This law has remained in effect for over 75 
years to ensure that everyone who drives the 
same vehicle was paying the same amount of 
tax.
1st year 
.0240 mil rate 
2nd year 
.0175 mil rate 
3rd year 
.0135 mil rate 
4th year 
.0100 mil rate 
5th year 
.0065 mil rate 
th
 mil rate 
WHERE CAN A TOWN GET THE 
MSRP? 
There are several resources for the MSRP 
that will provide information on the retail 
price of a vehicle. New vehicles must have 
a window sticker that will be used. 
For used cars, one can use the NADA 
Guide, The New Car Cost Guide, the 
Automobile Red Book and the 
Automobile Blue Book. 
Many towns have adopted software based 
on the Red Book and can use the VIN 
number in order to get the MSRP of that 
vehicle.  
 
 
If a town did not collect 
excise tax, then they would 
? 
 
 
For example, a 3 year old
MSRP of $19,500 would
      ($19,500 X .0135 = $
 
WHERE DOES THE
The town that collects th
6  year 
.0040
use it as revenue towards the annual to
budget. Typically, the revenue is spent
local road maintenance, construction a
repair. 
ore 
cles. 
 
 the 
. 
h 
wn 
 on 
nd 
 
 
be forced to increase other 
taxes in order to make up 
the difference.