3.__Surtax.__The surtax collected from railroad companies that use infrastructure funded by the fund.__The State Tax Assessor and the Commissioner of Transportation jointly shall develop a rate and method of collection for this surtax.__The State Tax Assessor and the Commissioner of Transportation shall use the following criteria in developing the surtax:

A.__The surtax shall be collected on a basis of passenger use per track-mile; and

B.__Railroad companies that pay the surtax are eligible for a partial or full refund of the surtax based on on-time passenger service performance.

§8205.__Rules

The Commissioner of Transportation shall adopt rules governing the implementation of this subchapter.__Rules adopted pursuant to this section are major substantive rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. 3. 36 MRSA §1864 is enacted to read:

§1864.__Allocation of use tax on special fuel tax refunds

collected from railroads

All use tax revenues on special fuel tax refunds collected from railroad companies pursuant to section 3218 must be allocated to the Passenger Rail Trust Fund, as established in Title 23, section 8201, pursuant to Title 23, section 8204 subsection 2.__The State Tax Assessor and the Commissioner of Transportation jointly shall devise a method to calculate the annual percentage of use tax revenue on special fuel tax refunds that is collected from railroads.

Sec. 4. 36 MRSA §2625-A is enacted to read:

§2625-A.__Allocation of revenue

All excise tax revenues collected from railroad companies pursuant to this chapter must be allocated to the Passenger Rail Trust Fund, pursuant to Title 23, section 8204, subsection 1.

SUMMARY

This bill creates the Passenger Rail Trust Fund and establishes a board of directors to administer the fund. The fund may be used only for maintenance and improvements to passenger rail infrastructure, the purchase or lease of real property to support passenger rail service, operating assistance to passenger rail service providers offering service in Maine, a tax-credit incentive for on-time service performance by passenger rail service providers offering service in Maine and passenger rail planning provided by the Department of Transportation.

Sources of funds include all excise tax revenues collected from railroad companies, use tax revenues on special fuel tax refunds collected from railroad companies and a surtax collected from railroad companies that use infrastructure supported by the fund. The surtax may be collected on a basis of passenger use per track-mile. Railroad companies that pay the surtax may be eligible for a partial or full refund of the surtax based on on- time passenger service performance.

The Commissioner of Transportation shall adopt rules governing the implementation of the fund.