An Act To Eliminate the Annual Indexing of Fuel Tax Rates
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, indexing of the motor fuel tax rate will occur July 1, 2011 unless this bill takes effect before that date; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Sec. 1. 36 MRSA §3203, sub-§1-B, as amended by PL 2009, c. 413, Pt. W, §2 and affected by §6, is further amended to read:
| Fuel type based on gasoline | BTU content per gallon or gasoline gallon equivalent | Tax rate formula (BTU value fuel/BTU value gasoline) x base rate gasoline |
| Gasoline | 115,000 | 100% x base rate |
| Propane | 84,500 | 73% x base rate |
| Compressed Natural Gas (CNG) | 115,000 | 100% x base rate |
| Methanol | 56,800 | 49% x base rate |
| Ethanol | 76,000 | 66% x base rate |
| Hydrogen | 115,000 | 100% x base rate |
| Hydrogen Compressed Natural Gas | 115,000 | 100% x base rate |
| Fuel type based on diesel | BTU content per gallon or gallon equivalent | Tax rate formula (BTU value fuel/BTU value diesel) x base rate diesel |
| Diesel | 128,400 | 100% x base rate |
| Liquified Liquefied Natural Gas (LNG) | 73,500 | 57% x base rate |
| Biodiesel | 118,300 | 92% x base rate |
(1) For compressed natural gas, BTUs per 100 standard cubic feet is 93,000, and there are 123.66 standard cubic feet per gasoline gallon equivalent.
(2) For hydrogen, BTUs per 100 standard cubic feet is 27,000, and there are 425.93 standard cubic feet per gasoline gallon equivalent.
(3) For hydrogen compressed natural gas, BTUs per 100 standard cubic feet is 79,800, and there are 144.11 standard cubic feet per gasoline gallon equivalent.
Sec. 2. 36 MRSA §3208, first ¶, as amended by PL 2007, c. 438, §78, is further amended to read:
Every user subject to the tax imposed by section 3203 is entitled to a credit on the tax, equivalent to the then current rate of taxation per gallon imposed by section 3203 as adjusted pursuant to section 3321, on all special fuel purchased by that user from a supplier or retailer licensed in accordance with section 3204 upon which the tax imposed by section 3203 has been paid. Evidence of the payment of that tax, in a form required by or satisfactory to the State Tax Assessor, must be furnished by each user claiming the credit. When the amount of the credit to which any user is entitled for any quarter exceeds the amount of the tax for which that user is liable for the same quarter, the excess may be allowed as a credit on the tax for which that user would be otherwise liable for another quarter or quarters. Upon application to the assessor, the excess may be refunded if the applicant has paid to another state or province under a lawful requirement of that jurisdiction a tax similar in effect to the tax imposed by section 3203 on the use or consumption of that fuel outside the State, at the same rate per gallon that tax was paid in this State, but in no case to exceed the then current rate per gallon of the tax imposed by section 3203 as adjusted pursuant to section 3321. Upon receipt of the application the assessor, if satisfied after investigation that a refund is justified, shall so certify to the State Controller. The refund must be paid out of the Highway Fund. This credit lapses at the end of the last quarter of the year following that in which the credit arose.
Sec. 3. 36 MRSA c. 465, as amended, is repealed.
Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.
summary
This bill repeals the annual indexing of motor fuel tax rates and deletes cross-references.