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Posted by Stu Marckoon/Paul Labrecque, January 24, 2007:

The Legislature is considering a pair of bills that affect excise tax collections.  MMTCTA President Gayle Doyon and our legislative expert Paul LaBrecque are looking for comment on the list-serve that may be useful when it comes time to hearing.  The bills are summarized below from the MMA website.

LD 79 – This bill repeals the motor vehicle excise tax on a new motor vehicle. The excise tax would only be applied starting with every new motor vehicle's second year of ownership at the second year rate.

LD 227 – This bill requires any unused motor vehicle excise tax payments to be returned to the owner or lessee of the motor vehicle as a refund on a pro-rated basis.

As you might imagine, MMTCTA is likely to testify in opposition to LD 79 because of the severe financial impact on municipalities.  It might be helpful if you could figure how many vehicles were registered last year at the 24-mill rate to see what kind of impact that would be to your town.

LD 227 creates an interesting administrative challenge in tracking multiple credit usage.  As mentioned, we're looking for comment on both bills, and a response to the list-serve address would be appropriate, as all could see it.

Responses:       

LD79          Out of $2.9+ million approx. $961,000 was 24 mills and approx. $579,000 was 4 mills     

LD227       Do not approve and keep the process as it is currently. (Claire Morrison, Saco)

From 7/1/05 to 6/30/06  we registered: 1.    143 vehicles (mil rate 24) for excise of $66493.00 2.    2511 vehicles (mil rate 4) for excise of $168612.00 Total excise collected for the fiscal year was $413671.00 (Laurie Boucher, Richmond)

Town of Detroit:  population 815 Total excise collected $127,633 578 vehicles at 4mils total $56,933 35 vehicles at 24 mils total $21,652 we do not support either of these bills (Kathy Walston, Detroit)

For calander year 2006 The Town of Veazie, population 1789, registered new or new transfers totaling $78,855.45. This figure was for 121 new vehicles. This accounts for about 30% of the excise tax collections for the year.

As for refunding unused excise tax, I can see were that could become an accounting nightmare and the potential for people to say they have junked the car when there is a break down and then 2 years later coming back to register it. (Julie Reed, Veazie)

Topsham's is Mil year 223,324.82, Mil year 6 409420.38 Toatl of 1,285,260.18. (Ruth Lyons, Topsham)

Question 1 Approx: $95,000 Question 2 Aprrox: 50 vehicles at .24 Question 3 Unable to respond at this time (Town of Thorndike)

Lamoine collected $63,809.50 on 130 cars at the 24-mill rate in FY 2006.  Total auto excise tax collections were $293,772.56.   That represents 21.7% of excise tax collections! (Stu Marckoon, Lamoine)

THANK YOU TO MY TOWN CLERK FOR RETRIEVING THESE NUMBERS:

Excise collected from 1/1/06 through 12/31/06 was $299,568.87. New registrations - 109 for a total of $76,245.30, which is 25% of our total excise collected! (Town of Dayton)

The Town of Berwick information 1/1/2006 -12/31/2006:  Total excise $972,293.58                                                                                   Mil year 1     169,094.83                                                                                   Mil year 6     328,722.92 (Town of Berwick)