LD 571 LR 1368(01)
An Act To Amend the Laws Governing Sales Tax on Used Motor Vehicles
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Sen. Snowe-Mello of Androscoggin
Committee: Taxation
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Current biennium cost increase - General Fund
Current biennium cost increase - Other Special Revenue Funds
Fiscal Detail and Notes
This bill would limit the taxable sales price of a used motor vehicle to the price stated on the receipt or bill of sale in the absence of convincing evidence that other consideration was given which raises the taxable sales price.  This will generally lower the sales tax collected and result in losses to the General Fund and reductions to revenue sharing.  Maine Revenue Services states that ambiguities inherent in the term "convincing evidence" and other key terms of the bill make it impossible to determine the extent of the revenue impact without further clarification.