ME LD1194

New motor vehicles purchased from licensed dealers become exempt from excise tax starting July 1, 2025, with existing excise taxes phased out by 20% annually over five years until reaching zero on July 1, 2029

Usage-based infrastructure fee takes effect July 1, 2027, charging 1 cent per mile for passenger vehicles and 1.5 cents per mile for heavy duty vehicles, with electric and hybrid vehicles paying a flat annual fee equal to the average usage-based fee

Exemptions from the usage-based fee apply to the first 10,000 miles annually for persons 65 years or older and households with annual income under $40,000

Maine Transportation Fund established as a nonlapsing fund to receive fee revenue, with funds distributed to municipalities and the Highway Fund for road maintenance, bridge repair, and transportation infrastructure projects

Department of Transportation must submit implementation plan by January 1, 2026, followed by annual progress reports starting January 1, 2028, and biennial State Auditor reviews beginning July 1, 2028