An Act to Create a Seasonal Gas Tax Exemption and Rate

Be it enacted by the People of the State of Maine as follows:

Sec. 1.  36 MRSA §2903, sub-§1, as amended by PL 2019, c. 379, Pt. B, §7, is repealed and the following enacted in its place:

1. 1. Excise tax imposed. Any fuel containing at least 10% internal combustion engine fuel is subject to the tax imposed by this section.
2. A. An excise tax is imposed on internal combustion engine fuel used or sold in this State, including sales to the State or a political subdivision of the State, at the rate of 0¢ per gallon.
3. B. Notwithstanding paragraph A and except as provided in paragraph C, an excise tax may not be imposed on internal combustion engine fuel used or sold in this State, including sales to the State or a political subdivision of the State, from 12:00 a.m. on Thanksgiving Day until the following 12:00 a.m. on May 1st.
4. C. An excise tax is imposed at a rate of 3.4¢ per gallon on internal combustion engine fuel bought or used for the purpose of propelling jet or turbojet engine aircraft.

SUMMARY

This bill removes the imposition of the excise tax on internal combustion engine fuel, except for fuel bought or used for the purposes of propelling jet or turbojet engine aircraft, from Thanksgiving Day until the following May 1st, annually.  The bill raises the excise tax on such fuel, except that used for jet or turbojet aircraft, to 40¢ per gallon at all other times. The excise tax on jet or turbojet aircraft remains at 3.4¢ per gallon.