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Committee hears bill to limit number of tax‑exempt vehicle registrations for disabled veterans; Secretary of State seeks drafting fixes
Summary
LD 807 would cap free motor vehicle registrations provided to disabled veterans and provide reimbursement to municipalities for lost excise taxes; the Bureau of Motor Vehicles offered neither-for-nor-against testimony and suggested drafting changes and further coordination with municipalities and the State Controller.
Representative Drinkwater’s LD 807 would limit the number of motor vehicle registrations eligible for an excise‑tax exemption for certain disabled veterans and require state reimbursement to municipalities for lost excise tax revenue. The measure drew neither public support nor opposition in the hearing on April 3.
Kathy Curtis, Deputy Secretary of State (BMV), offered neutral testimony and identified drafting and administrative issues. Curtis said excise tax is a municipal tax and the BMV lacks authority over municipal excise collection; she recommended municipalities report directly to an appropriate state agency rather than routing reimbursement requests through the Secretary of State. Curtis also asked the committee to clarify which account would cover any reimbursements and suggested the highway fund should not be the source.
Committee members discussed practical fixes: limiting exemptions to vehicles with the veteran listed on the title (not just the registration) and clarifying whether the cap should apply only to 100% disabled veterans. Several members suggested committee staff coordinate with the Maine Municipal Association and the sponsor to craft an amendment for the work session that would: (1) limit the number of exempt vehicles, (2) require disclosure of title ownership, and (3) specify the reimbursement mechanism and funding source.
No vote occurred; the committee asked staff to work with the sponsor, the Maine Municipal Association and the Secretary of State’s office to prepare language and to provide data (counts of eligible veterans and revenue exposure) for the work session.
