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I-Team: Maine excise tax among the highest in US; how is that money spent?


Vehicle excise tax in Maine is among the most expensive in the country, but where does all that money go? WGME
Vehicle excise tax in Maine is among the most expensive in the country, but where does all that money go? WGME
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AUGUSTA (WGME) - It's a price every Maine driver has to pay every year -- excise tax.

But how is that money used and why is that tax so high in Maine compared to other states?

  • Research by CBS 13 found 24 states have no excise tax
  • Wallethub reports Maine's excise tax is the 6th highest in the country

Our I-Team hears these questions often, including this week from Brien Paine who stopped by our "Tell the I-Team" event at Rolly's in Auburn.

Paine just got a new car and on top of the sales tax, he'll have to pay excise tax.

"It will cost me $900 just to get a sticker so i can put it on the road," Paine said.

State law says excise tax is "for the privilege of operating a motor vehicle."

According to state records, there are 1.6 million vehicles registered in Maine.

The Maine Municipal Association says the excise tax paid by the owners of those vehicles generates $230 million a year.

"That's a lot of money being dished out. Where's it going?" Paine asked.

After that question, we went to the Secretary of State's office to find out.

"Excise tax is an annual tax on your vehicle that goes back to your municipality. The money does not go back to the state it goes directly to your town or city," said Kristen Muszynski, Communications Director, Office of the Secretary of State.

Paine also wanted to know why excise tax revenue isn't used to fix the roads, including pot holes.

State law lets cities and towns use excise tax revenue however they want.

A bill recently failed which would have required that money be spent on roads and bridges.

But Muszynski said typically the money is spent on road repairs and construction.

"A lot of people like knowing that. The money stays local. When they're paying that kind of money, they like to know it goes back into the roads and in most municipalities that's what it's used for," she said.

Proposals at the state house have tried to lower it, but those bills didn't make it far as opponents said lower excise taxes would just mean higher property taxes.

If you have or something you think we should investigate, come see us.

  • Parker's Restaurant
  • Portland
  • Wednesday, May 15
  • 10am-1pm

To contact the I-Team by phone, call 1-207-228-7713.

To contact the I-Team by email, send your tip to tips@wgme.com

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