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March 06, 2007
Renting My Car from the State
Maine legislators are talking about changing the excise tax. Too bad it will never happen.
Preliminary estimates for 2005 peg total municipal revenues from the tax at almost $202 million, marking the first time collections have topped the $200 million mark, according to Maine Revenue Services, which compiles the information from cities and towns.Nice, huh? I still pay over $100 a year for a car that is completely paid off.The tax rates run from $24 per $1,000 on the manufacturer's list price for a new vehicle to $17.50 the second year and $13.50 the third year. The rate drops to $10 per $1,000 the fourth year, $6.50 the fifth year and $4 from the sixth year on out, for as long as the vehicle is registered.
Although the rate drops as the vehicle ages, the value of the vehicle does not change for tax purposes. For example, a new $30,000 car will be taxed on that value as long as it is on the road. The rate will drop from $24 to $4 by the sixth year, but the car's taxable value will still be listed as $30,000, in the sixth year and beyond.
Similarly, a motorist who buys a six-year-old car will be taxed on what that car's value was when it rolled off the line six years earlier.
One paragraph shows just how addicted Maine's municipal leaders are to tax revenue:
Any reform that cuts revenue will come at a price, however, and it is Maine's cities and towns that would bear the burden, possibly triggering an increase in property taxes to cover the lost excise-tax revenue.Note what option is not on the table - forcing muncipalities to find ways to cut spending."Should we have it go down? Yes," said Rep. Abby Holman, R-Fayette, who sponsored a bill to deal with Getty's problem. But eliminating the tax is not an option, said Holman, who is a selectman in Fayette, because "it would hurt towns far too much."
So an excise tax cut is a nice thought, but essentially a pipe dream.
Between the -30 wind chill today and the ridiculous tax policies of this state, Texas is looking better every minute...
Posted by slublog at March 6, 2007 08:51 AM
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Comments
Come on down. Currently in San Antonio, 63 degrees, bright clear sky, southeasterly breeze at about 5 mph.
Posted by: JimInTexas at March 7, 2007 11:44 AM
Plus, no state income tax. Instant pay raise!
Posted by: WindRider95 at March 7, 2007 05:16 PM
Sounding good.
Now if I could just convince the family...
Posted by: Slublog at March 7, 2007 08:19 PM