Fuel type BTU content Formula Tax rate

per gallon (BTU

value fuel/

BTU value

gasoline)

x tax rate

gasoline

Gasoline 115,000 100% x 22¢ 24¢ 22¢ 24¢ per

gallon as

authorized

in section

2903

Methanol 65,530 57% x 22¢ 24¢ 12.5¢ 13.7¢ per

(M85) gallon

Ethano 81,850 71% x 22¢ 24¢ 15.6¢ 17¢ per

(E85) gallon

Propane 84,500 73% x 22¢ 24¢ 16¢ 17.5¢ per

gallon

Compressed 100,000 87% x 22¢ 24¢ 19.1¢ 20.9¢ per

Natural Gas (BTU per 100 100

standard cubic standard

feet) cubic

feet

Sec. 4. 36 MRSA c. 465, as enacted by PL 2001, c. 688, §8, is repealed.

SUMMARY

This bill does the following:

1. It repeals the indexing of motor fuel tax rates;

2. It increases the gasoline tax by 2¢;