 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
way.
WHERE DO I PAY 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. MRSP (manufacturers suggested
retail price)
HOW IS THE EXCISE TAX CALCULATED?
______________________________________
Excise Tax is calculated by multiplying the MSRP by
the mil rate as shown below. The rates drop back
on January 1st of each year.
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
6th year .0040 mil rate
For example, a 3 year old car with an MSRP of
$19,500 would pay $264.25.
($19,500 X .0135 = $263.25)
WHERE DOES THE TAX GO?
_______________________________
The town that collects the excise tax can use it as revenue towards the annual town budget. Typically,
the revenue is spent on local road maintenance,
construction and repair.
WHY IS THE TAX BASED ON MSPR?
________________________________________
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.
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.
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