What Is Maine’s Excise Tax On Vehicles
Maintaining your vehicle is important if you want to save time and money. Even with the savings on maintenance costs, you still need to account for the annual excise tax that you need to pay. The state of Maine requires registered car owners to pay an annual excise tax, which is also required for mobile homes, trailers, and stock vehicles. Maine’s Office of the Revisor of Statues explains that you’ll pay $5 per year in excise tax if you own a motor vehicle. The excise tax you pay goes to the construction and repair of roadways in the state.
Maine calculates this tax by taking the current MSRP of your vehicle and multiplying it by the mileage rate. For example, if your vehicle has an MSRP of $8,950 and a milage rate of .0065, you will multiply $8,950 by .0065. After making this calculation, you know that you’ll pay $58.18 in excise tax.
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 nearly 100 years to ensure that everyone who drives the same vehicle pays the same amount of tax.
Gifting A Car In Maine
If you want to gift a car to someone in , youâll need to transfer the title as if itâs a private sale with $0 listed as the sales price. The gift recipient will need to pay 5.5% sales tax on the vehicleâs market value. state-specific paperwork and regulations
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Vehicle & Trailer Registration
The Town of Washburn residents may register their vehicle or trailer at the Town Office during regular business hours of 7 AM 4 PM on Monday-Thursday, and 7 AM to Noon on Friday. The Office is CLOSED from 11:30 am 12:30 pm for Lunch. First time Vehicle and Trailer Registration cannot be done online.
The Town Office does not send out registration reminder cards due to postage costs and administrative expenses. Please contact the Town Office at for more information.
What Do I Need To Register A Motor Vehicle
Registrations for vehicles purchased and previously registered in another state require proof of registration from the previous state.
Registrations for vehicles purchased from Canada will require the most recent registration document. Canada does not have titles. An inspection of the vehicle ID # will be mandatory at the time of registration. The following import documents are required: Department of Transportations HS-Form 7 Declaration U.S. Customs Entry Form #7501 or CJ-3299 or CJ-368.
If you are required to file an SR-22 with Maines State, you must pay excise tax in Washburn first and then complete your vehicle registration at the Bureau of Motor Vehicles Branch Office in Caribou.
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Definition And Example Of The Federal Gasoline Excise Tax Rate
The federal gasoline excise tax is a tax that was implemented to fund transportation-related projects across the United States. It was first introduced through the Revenue Act of 1932 at a rate of $0.01 per gallon, generating $125 million during its first year. The rate has gone up slowly through the years and currently stands at $0.184 per gallon.
On June 22, 2022, President Biden urged Congress to pause the federal gas tax for a three-month period, until September 30, 2022.
The federal gas tax is an excise tax, which is a type of tax imposed on the sale of specific goods, such as gasoline. These taxes are passed on to consumers, because theyre built into the purchase price of the product.
While consumers throughout the U.S. pay the same federal gas excise tax rate whenever they buy a gallon of gas, the total amount they pay for that gas depends on the laws of the state and locality in which the fuel is purchased. For instance, while drivers in Mississippi pay a total of $0.20 per gallon of gas in federal and state taxes, drivers in California pay a whopping $0.67 for that same gallon of gas.
How Are Rebates And Dealer Incentives Taxed In Maine
While car dealerships in Maine give you the chance to trade-in your old vehicle, they also provide discounts and rebates that can drop the price of a newer vehicle. The purpose of giving you a discount is to present an additional incentive to buy a certain type of vehicle from their dealership instead of from their competition.
For instance, you might get a $3,000 rebate for a car valued at $11,000. You’ll see on the sales contract that you still have a selling price of $8,000 to pay to the dealership. You can negotiate with them to drive the price down even further. When you get the sales contract from a representative at the dealership, you’ll notice the inclusion of the rebates and discounts given to you. You still have to pay taxes on $11,000 since it’s the sticker price.
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Real Estate And Personal Property Tax Collections
The City operates on a July 1 to June 30 fiscal year and property taxes are due in four quarterly installments. The payment due dates for fiscal year 2022/2023 are as follows:
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First Installment Due August 18, 2022
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Second Installment Due November 17, 2022
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Third Installment Due – February 16, 2023
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Fourth Installment Due – May 11, 2023
You can also drop off your tax payments in the secure dropbox located in the BACK of City Hall . This drop-off box is available 24/7 in the weeks prior to taxes being due.
Vehicle Registration Information
Other Fees Charged When Purchasing A New Vehicle
You need to pay additional fees when you purchase a vehicle in Maine. Maine’s Department of Motor Vehicles collects the fees you pay at the time of purchase. Here is a list of additional fees, per the Sales Tax Handbook:
- A title fee of $33 is charged to get the car’s title in your name
- A registration fee of $30
- A plate transfer fee of $10 to transfer your license plates from a different state
The average amount you can expect to pay the DMV if you buy a car in Maine is $35, which includes all the fees listed above.
Car dealerships in Maine charge a documentation fee when you purchase a new vehicle. This fee is the cost for the dealership to prepare and file your vehicle’s sales contract, tax documents, and additional sales files. The average documentation fee a buyer pays is $410. However, you might pay more since Maine’s state law does not limit how much you can pay in documentation fees.
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Vehicle Excise Tax And Registration
Autos and Trucks
Payment of an excise tax is required on all vehicles in the town of residence before registration. In order to re-register your vehicle, we need the previous registration, proof of insurance and current mileage. We can process limited new registrations. This applies if the vehicle has been purchased from a Maine licensed dealer.
Please bring the following
- Proof that sales tax has been paid
- Blue copy of title application
- Previous registration of vehicle being traded or sold from which plates are being transferred
- Proof of insurance
- Current mileage
New Car
It is mandatory to have the Monroney Label or window sticker. This became law on September 19, 1997. The State of Maine does not send reminder notices for vehicle registration renewals. Remember to check your registration expiration date.
Remember to check your inspection sticker each year.
Q Do I Have To Go To Motor Vehicle Branch To Complete The Registration Process
A. Not usually. We can register any new vehicle up to 9,000 lbs or re-register any vehicle no matter the weight. We can not register your vehicle if your privilege to register is under suspension or if you must file an SR-22 with the Secretary of States office. An SR-22 is the designation by the State of Maine which indicates that the registrant must show proof of insurance and pay for the registration fee at a BMV branch office prior to having a registration issued.
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How Is The Excise Tax Calculated
Excise tax is calculated by multiplying the MSRP by the mill rate as shown below. The rates drop back on January 1st of each year.
YEAR 1 .0240 mill rate
YEAR 2 .0175 mill rate
YEAR 3 .0135 mill rate
YEAR 4 .0100 mill rate
YEAR 5 .0065 mill rate
YEAR 6 .0040 mill rate
For example, the owner of a three year old motor vehicle with an MSRP of $19,500 would pay $263.25.
Which State Has The Lowest Tax Rate
There are several states that do not have excise taxes on vaping products at all. However, out of the states that do tax vaping products, one of the lowest is percentage-based taxes is New Hampshire at 8% of wholesale price for open vaping products.
Delaware, Kansas, Louisiana, North Carolina, and Wisconsin are also some of the lowest at $0.05/ml.
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How The Federal Gasoline Excise Tax Works
Federal gas taxes are put into the Highway Trust Fund to pay for infrastructure and transportation costs, and this policy has been a point of contention among many groups over the years. The American society of Civil Engineer’s Report Card for America’s Infrastructure notes that 40% of the nation’s roadways are in “poor” or “mediocre” condition. Some experts say that raising the gas excise tax could help fund improvements.
The federal gasoline excise tax is a combination of two taxes. It includes a $0.001-per-gallon leaking underground storage tank fee, which is added to the tax-per-gallon rate on both gasoline and diesel fuel.
The LUST fee goes into a trust fund that was created in 1986. Its intended to prevent petroleum leaks from federally regulated underground storage tanks. It also funds the oversight and enforcement of petroleum leak cleanups. It pays for cleanup when the responsible party isnt known, and it funds inspections.
Depending on where you live and how much gas costs in your state, the existing federal gasoline excise tax and each states gasoline tax can already make a big difference in the price you pay at the pump.
The federal gasoline excise tax rate is currently $0.184 a gallon. The rate has been raised 10 times since 1933, but it hasnt increased since 1997.
- California: $5.730 per gallon
- New Mexico: $0.1888 per gallon
The map below breaks down gas tax by state.
Q What Is The Amount Of Excise Tax That I Will Have To Pay To Register My Vehicle
A. The amount of excise tax is determined by applying a mil rate to the manufactured suggested retail price . The MSRP is more commonly called the sticker price or the Monroney Label. The Monroney Label is applied to the vehicle at the time of manufacture. It must be provided when registering a vehicle that has never been registered. Excise taxes are based on the MSRP of the vehicle when it was brand new. A mil rate is applied to the sticker price on a sliding scale with new vehicles paying a higher mil rate than older vehicles. The mil rate starts at $24.00 per thousand dollars of value on a brand new vehicle, $17.50 per thousand for the second year, $13.50 per thousand for the third year, $10.00 per thousand the fourth year, $6.50 per thousand the fifth year and $4.00 per thousand for the sixth year and subsequent years. For example: If you purchased a new vehicle and the MSRP states that the vehicle costs $24,575 , this amount is multiplied by .024 which means that the amount of excise tax due would be $589.80. Registration and agent fees are not included in this calculation. Registration fees vary depending on the type of plate you request. If you have purchased a used vehicle our software will research the MSRP for you.
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Motor Vehicle Excise Tax And Registration Fees
In Maine, the excise tax is based on the MSRP of the vehicle when it was sold new. That is why Maine law provides that each newautomobile, SUV, van or light truck registered for the first time must be accompanied by the Monroney Label .
The law provides that excise tax declines over the first six years of the vehicles life and is calculated as follows:
- First year $24.00 per $1000 of MSRP
- Second year $17.50 per $1000 of MSRP
- Third year $13.50 per $1000 of MSRP
- Fourth year $10.00 per $1000 of MSRP
- Fifth year $ 6.50 per $1000 of MSRP
- Sixth and subsequent years $ 4.00 per $1000 of MSRP
If you know the sticker price of a new car, you can calculate the excise tax bysubtracting the destination charges, dividing the result by $1,000 and multiplying that by $24.00.
New Vehicle Example:
New Registration Any State Private Sale
A MVT-2 and/or Use Tax Certificate will need to becompleted for this transaction. Please pick up and fill out these forms at the Tax Officebefore registering your vehicle to ensure smooth transactions and a reduction inprocessing times.
To complete your Private Sale registration, you will need:
- Proof of Insurance**
- Bill of Sale: Must have year, make, model, VIN number, current mileage, date of sale, and a statement indicating the amount of the sale, who the vehicle is being sold to, and must be signed by the seller.
- Previous Owners Original Title Certificate : Must be fully completed on the back side by the seller, showing who the vehicle is being sold to, current mileage, date of sale and must be signed by each of the individuals listed on the front of the title. The title must be free of liens.
- Previous Registration
- NOTE: The name on the old registration for those plates must be the same as the names listed on the new vehicles title application. To transfer credit, you must no longer have possession of the previous vehicle.
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Motor Vehicle Excise Tax
The current method of calculating motor vehicle excise tax has been in place since 1929, and the rates used then are still in use. In Maine the excise tax is based on the MSRP of the vehicle when it was sold new. That is why Maine law provides that each new automobile, SUV, van or light truck registered for the first time must be accompanied by the Monroney Label . This provides equal assessment for everyone regardless of the original purchase price. Heavy trucks, registered over 26000 pounds, are excised based on the purchase price, and the municipality is reimbursed for the remainder from the State of Maine.
The law provides that excise tax is calculated using the following method:
- First year 24.00 mils/$1000.00
Where Can A Town Get The Msrp
There are several resources for the MSRP that will provide the information on the retail price of a vehicle. New vehicles are required to have a window sticker and the window sticker must be must be presented on first time registrations.
For used cars, individuals and municipalities can use the JD Power Official Used Car Guide , the New Car Cost Guide, the Automobile Red Book and the Automobile Blue Book to determine the MSRP of a vehicle.
Many towns have adopted software based on the Automobile Red Book and can use the VIN number to determine the MSRP of that vehicle.
Please note: The State of Maine Property Tax Division only provides quotes to the Municipal Tax Collector, not to individuals.
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New Resident Previously Registered Out Of The State Of Maine
A MVT-2 and/or Use Tax Certificate will need to becompleted for this transaction. Please pick up and fill out these forms at the Tax Officebefore registering your vehicle to ensure smooth transactions and a reduction inprocessing times.
To complete your New Resident registration, you will need:
- Proof of Insurance**
- Title of vehicle . If the vehicle is financed, please bring documentation of lienholder and their address.
- Registration from previous State.
Alternatives To Paying The Federal Gasoline Excise Tax
There’s not a lot you can do to control the gasoline excise tax rate or the cost of fuel, but you can influence how much you spend by buying less of it. Consider saving on fuel costs by taking public transportation or combining trips, such as running errands on your way home from work, if the cost of gas is wrecking your monthly budget, whether due to a long commute or travel-heavy job. Carpooling with co-workers is also an excellent way to save cash and will save you that rush-hour headache.
Try using apps that help you save money on gas by locating the cheapest options in a given area. Some will even reward you with loyalty points and other perks when you use their apps.
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Plate Types Available At The City Of Brewer
*NOTE: Any other plates offered by the State of Maine and/or vanity plates will need to be processed at the Department of Motor Vehicle branch office. In this scenario, please come to the City of Brewer firstto pay your excise tax before going to the DMV.
Check the Maine Bureau of Motor Vehicles for office locations and hours of operation.
How Does Auto Excise Tax Work Can I Calculate How Much It Will Be
Excise tax is paid when you register a vehicle. The tax amount is based on the MSRP and the vehicles age. Please click here for more information.
To calculate excise tax, multiply the per year amount by each thousand dollar of the MSRP. For example, the first year excise tax for a vehicle with an MSRP of $30,000 would be $720 . Excise tax for the second year of the vehicle would be $525 .
Excise rates are:
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