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 (manufacturer's suggested retail price) 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 window sticker. This provides equal assessment for everyone regardless of the purchase price. Heavy trucks, registered over 26,000 pounds, are excised based on the purchase price, and the municipality is reimbursed for the full amount using other calculations.
The law provides that excise tax is calculated using the following method:
| Year | Mil | Rate Cost |
|---|---|---|
| 1 | .024 | $24.00 on $1000.00 |
| 2 | .0175 | $17.50 on $1000.00 |
| 3 | .0135 | $13.50 on $1000.00 |
| 4 | .01 | $10.00 on $1000.00 |
| 5 | .0065 | $6.50 on $1000.00 |
| 6+ | .004 | $4.00 on $1000.00 |
If you know the "sticker price" of a new car you can calculate the tax by subtracting the destination charges and multiplying the remainder by .024.
New Vehicle Example:
Sticker price: $26,000.00
Destination charges: $550.00
$26,000.00 - $550.00 = $25,450.00
$25,450.00 x .024 = $610.80
The excise tax due will be $610.80
A registration fee of $35.00 and an agent fee of $4.00 for new vehicles will also be charged to register your new vehicle.
The same method will be used to calculate the fees to re-register the same vehicle. Your old registration will show the MSRP as the base and the mil rate used. The example below is shown for a vehicle registered in the second year.
Second Year Example:
MSRP: $25,450.00
$25,450.00 x .0175 = $445.38
Registration fee = $35.00
Agent fee = $3.00
Total amount due = $473.38