Bill > LD1194

Introduced Session

This bill does the following. 1. It eliminates the excise tax for new vehicles beginning on July 1, 2025. 2. It phases out excise taxes for motor vehicles, beginning on July 1, 2025, by reducing the excise tax by 20% for each fiscal year over 5 years. 3. It establishes, beginning July 1, 2027, a usage-based infrastructure fee. The usage- based infrastructure fee imposes a fee on a person who owns a motor vehicle for using public ways based on the type of motor vehicle and the annual mileage of the vehicle, maintained by the Department of Transportation. 4. It specifies that a person or a certified inspection mechanic during an annual motor vehicle inspection must report the annual mileage for the purposes of calculating the usage- based infrastructure fee. The department is responsible for establishing a digital reporting system for an owner of a motor vehicle to report the annual mileage on the motor vehicle and ensuring accurate vehicle mileage reporting. 5. It establishes the Maine Transportation Fund within the department for the purposes of maintaining and repairing roads, maintaining and repairing bridges and funding transportation infrastructure projects. The funds allocated to the fund may be transferred to municipalities and to the Highway Fund. 6. It requires the State Auditor to submit a biennial audit report to the joint standing committee of the Legislature having jurisdiction over transportation matters on the financial and operational impact of the usage-based infrastructure fee, including a comparison of municipal funding generated by the fees rather than excise taxes. 7. It requires the department to submit an annual report on the findings and recommendations regarding the compliance of the usage-based infrastructure fee, findings and recommendations regarding the effectiveness and equity of the usage-based infrastructure fee and the costs associated with the transition to and the administration of the usage-based infrastructure fee. 8. It requires, by January 1, 2026, the department to submit a plan to the joint standing committee of the Legislature having jurisdiction over transportation matters on the implementation of the usage-based infrastructure fee. 9. It requires, by January 1, 2035, the department to submit a report to the joint standing committee of the Legislature having jurisdiction over transportation matters on the findings and recommendations regarding the compliance, effectiveness and equity of the usage- based infrastructure fees.

AI Summary

Committee Categories

Joseph Martin (R)*,  Jim Thorne (R), 

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 04/29/2025)

Official Document