PLEASE NOTE: Legislative Information cannot perform research, provide legal advice, or interpret Maine law. For legal assistance, please contact a qualified attorney.
An Act To Create a Diesel Fuel Tax Differential
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §3203, sub-§1-C  is enacted to read:
 
1-C.  Diesel fuel tax differential.     In addition to the tax imposed on diesel fuel under subsection 1-B, beginning November 1, 2019, an additional excise tax of 5¢ per gallon is imposed on all diesel fuel sold or used in this State. This subsection is repealed November 1, 2022.
Sec. 2.  36 MRSA §3203, sub-§4-A  is enacted to read:
 
4-A.  Diesel fuel tax differential accounting; report.     Taxes collected under subsection 1-C and credited to the Highway Fund under subsection 4 must be separately accounted for and deposited into a special account within the Highway Fund that may be used only for the construction, reconstruction, maintenance and repair of public highways and bridges.
Sec. 3. 36 MRSA §3203-C, as amended by PL 2009, c. 652, Pt. B, §8 and affected by §9, is further amended to read:
§ 3203-C.Inventory tax
On the date that any increase in the rate of tax imposed under this chapter takes effect, an inventory tax is imposed upon all distillates that are held in inventory by a supplier, wholesaler or retail dealer as of the end of the day prior to that date on which the tax imposed by section 3203, subsectionsubsections 1-B and 1-C has been paid. The inventory tax is computed by multiplying the number of gallons of tax-paid fuel held in inventory by the difference between the tax rate already paid and the new tax rate. Suppliers, wholesalers and retail dealers that hold such tax-paid inventory shall make payment of the inventory tax on or before the 15th day of the next calendar month, accompanied by a form prescribed and furnished by the State Tax Assessor. In the event of a decrease in the tax rate, the supplier, wholesaler or retail dealer is entitled to a refund or credit, which must be claimed on a form designed and furnished by the assessor.
Sec. 4. Report; legislation. The Commissioner of Transportation shall submit a report to the joint standing committee of the Legislature having jurisdiction over transportation matters by March 1, 2022 identifying the amount of revenue collected under subsection 1-C and the purposes for which the revenue was or will be used. The committee may submit legislation to the Second Regular Session of the 130th Legislature to retain, repeal or amend provisions relating to the diesel fuel tax differential.
 
SUMMARY
This bill imposes an additional 5¢ per gallon fuel tax on diesel fuel and requires that revenue from the tax be used only for construction, reconstruction, maintenance and repair of public highways and bridges. The additional tax is repealed on November 1, 2022. The Commissioner of Transportation is required to submit a report to the joint standing committee of the Legislature having jurisdiction over transportation matters by March 1, 2022 identifying the amount of revenue collected and the purposes for which the revenue was or will be used. The committee is authorized to submit legislation to the Second Regular Session of the 130th Legislature to retain, repeal or amend provisions relating to the diesel fuel tax differential.