LD1194

This bill phases out vehicle excise taxes and replaces them with a usage-based infrastructure fee starting July 1, 2027.

This bill eliminates vehicle excise taxes and introduces a usage-based infrastructure fee for motor vehicles in Maine. Starting July 1, 2025, the excise tax on new vehicles is phased out. By July 1, 2027, the Department of Transportation will begin collecting a usage-based infrastructure fee based on the type of vehicle and its annual mileage. Owners or certified inspection mechanics must report the annual mileage for fee calculation. The fee is one cent per mile for passenger vehicles and half a cent per mile for heavy-duty vehicles.