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#Fet tax on trailers software
#Fet tax on trailers code

Please note: The State of Maine Property Tax Division only provides quotes to the Municipal Tax Collector, not to individuals.įor more information see 36 M.R.S.

#Fet tax on trailers software

Many towns have adopted software based on the Automobile Red Book and can use the VIN number to determine the MSRP of that vehicle. New vehicles are required to have a window sticker and the window sticker must be must be presented on first time registrations.įor used cars, individuals and municipalities can use the JD Power Official Used Car Guide (formerly the NADA Guide), the New Car Cost Guide, the Automobile Red Book and the Automobile Blue Book to determine the MSRP of a vehicle. There are several resources for the MSRP that will provide the information on the retail price of a vehicle. This law has remained in effect for nearly 100 years to ensure that everyone who drives the same vehicle pays the same amount of tax. At that time, the Legislature decided that the fairest tax assessment would be based on what the manufacturer suggests it sell for. In 1925, this tax was enacted as a Maine law. Why is the tax based on MSRP?Įxcise tax was designed with equity in mind. Typically, the revenue is spent on local road maintenance, construction and repair.

The town that collects the excise tax can use it as revenue towards the annual town budget. Each month, the Association receives numerous questions on Federal Excise Tax (FET) of trucks and truck bodies imported from Canada to the United States. The rates drop back on January 1st of each year.įor example, the owner of a three year old motor vehicle with an MSRP of $19,500 would pay $263.25.

Manufacturer's suggested retail price ("MSRP")Įxcise tax is calculated by multiplying the MSRP by the mill rate as shown below.

The amount of tax is determined by two things: When a vehicle needs to be registered, an excise tax is collected prior to the registration. Where do I pay the excise tax?Įxcise tax is paid at the local town office where the owner of the vehicle resides. Senate Thursday that would repeal the 12 federal excise tax on the sale of heavy-duty trucks and trailers. Except for a few statutory exemptions, all vehicles registered in the State of Maine are subject to the excise tax.Įxcise tax is defined by Maine law as a tax levied annually for the privilege of operating a motor vehicle or camper trailer on the public ways. Bill to repeal FET praised by trucking groups. If the Federal excise tax is not separately stated and identified, but is included in the total purchase price paid by the buyer, the amount of the Federal excise tax included in the single charge is subject to sales tax under the Department’s ruling.Excise tax is an annual tax that must be paid prior to registering your vehicle. Since the Department determined that the excise tax imposed under Section 4051 is a tax imposed on the purchaser at the retail level, it determined that such taxes are not subject to sales tax as long as they are separately stated and identified on the invoice. That is, the regulations imply that Federal excise taxes imposed at the manufacturer’s level are included in the taxable purchase price, while Federal excise taxes imposed at the retail level are not included in the taxable purchase price.

The Department determined that these provisions reflect a difference in tax treatment between a Federal excise tax imposed at the manufacturer’s level and a Federal excise tax imposed at the retail level. The regulations which generally address the computation of the taxable purchase price of tangible personal property provide for inclusion in the taxable purchase price of “harges, whether or not separately stated, representing reimbursement to the vendor for expenses paid by the vendor, such as manufacturer’s excise tax….” 61 Pa.

The Department’s regulations relating to sales of motor vehicles specifically provide that “Federal Excise Tax” is included in the amount of the purchase price “since it is not a tax at the retail level.” 61 Pa.

Prior to the ruling, there was some confusion regarding the taxability of these Federal excise tax charges.

#Fet tax on trailers code

The Pennsylvania Department of Revenue has ruled that the Federal excise tax imposed by Section 4051 of the Internal Revenue Code on certain commercial vehicles is not to be included in the taxable purchase price for sales tax purposes, if the excise tax is separately stated and identified on the invoice.