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Military Excise Tax Exemption Revised

Date Posted: Monday, July 22, 2024
Posted In: Legal Notes

New legislation revises the excise tax exemptions allowed for active-duty military personnel by expanding a statewide exemption for eligible servicemembers. (See PL 2023, c. 565).

Previously, state law granted an excise tax exemption to resident and non-resident active-duty U.S. Armed Forces personnel permanently stationed in Maine. The law also allowed municipalities to exercise a “local option” to allow Maine resident active-duty U.S. Armed Forces personnel stationed outside of Maine to claim an exemption. See 36 M.R.S. §§ 1483(16), 1483-A.

Effective August 9, 2024, the “local option” authority is repealed and replaced with a reformulated statewide excise tax exemption (codified at 36 M.R.S. § 1483(16)) as follows:

Vehicles are exempt from excise tax if owned by a person (or co-owned with a spouse) who is on active duty serving in the U.S. Armed Forces who is permanently stationed at a military or naval post, station or base in or outside Maine or who is deployed for military service for a period of more than 180 days or was deployed for a period of at least 180 consecutive days, a portion or all of which occurred in the 12 months preceding the request for an exemption from excise tax, and who did not previously receive an exemption for that deployment.

Eligible servicemembers (or spouses) must provide documentation of the member’s eligibility from the commander of the member’s post, station or base, or from the commander’s designated agent.

A person on “active duty” in the Armed Forces of the United States includes members of the National Guard or the U.S. Armed Forces Reserves provided the person meets the service requirements above. “Deployed for military service” means active military duty with the state military forces, as defined in 37-B M.R.S.§102, or the U.S. Armed Forces, including the National Guard and Reserves, whether pursuant to orders of the Governor or the President of the United States, when the duty assignment is in a combat theater or in an area where armed conflict is taking place. (By S.F.P.)