Sec. 1. 36 MRSA §2910-B is enacted to read:

§2910-B.__Exemption for political subdivisions

Notwithstanding section 2910-A, a political subdivision of the State that buys and uses any internal combustion engine fuel is exempt from the excise tax imposed pursuant to this chapter.__The assessor shall adopt rules regarding the proof required of an operator of a political subdivision vehicle to obtain the exemption provided in this section.__Rules adopted under this section are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A.

SUMMARY

Current law allows a political subdivision of the State to apply to the State Tax Assessor for a reimbursement of the tax paid on fuel bought and used in the political subdivision's vehicles.

This bill exempts from the state motor fuel tax fuel bought and used in a political subdivision's vehicles.