Maine House Bill LD1809

Maine 2025-2026 Regular Session

• Introduced: 4/25/25
• Refer: 4/25/25
• Failed: 5/22/25

Caption

An Act to Further Stabilize Highway Fund Revenue

Impact

The fiscal implications of LD1809 are significant, as it represents a proactive approach to addressing revenue shortfalls associated with the Highway Fund. By targeting both out-of-state drivers and specific vehicle types, the bill encourages contributions from users who benefit from state infrastructure yet may not contribute adequately to its maintenance. The inclusion of a delivery fee also broadens the tax base and diversifies revenue sources, which proponents argue will mitigate the reliance on traditional fuel taxes that have become less effective due to the rise in electric vehicles.

Summary

LD1809, titled 'An Act to Further Stabilize Highway Fund Revenue', aims to enhance funding for the state's Highway Fund through new and additional revenue sources. The bill introduces a $1 surcharge on noncommercial passenger vehicles not registered in Maine that use the turnpike, establishes annual registration fees for electric vehicles—$200 for battery electric vehicles and $100 for plug-in hybrids—and imposes a delivery fee of 50 cents on sales of tangible personal property exceeding $100. All revenues generated from these initiatives are directed to the Highway Fund, ensuring a stable financial foundation for infrastructure projects.

Sentiment

The sentiment surrounding LD1809 is generally supportive among legislators focused on improving state infrastructure, particularly those invested in sustainable transportation initiatives. However, there are also concerns raised by certain advocacy groups around the fairness and potential economic impact of these fees on low-income residents and non-commercial vehicle owners, leading to debates about the balance between funding needs and equitable taxation.

Contention

Notable points of contention include the fairness of imposing fees on out-of-state drivers, as some argue this could deter tourism and interstate travel through Maine. The annual fees for electric vehicles also face criticism from those who feel it may discourage adoption of clean energy vehicles. Additionally, concerns were raised about the effectiveness of the delivery fee in generating significant revenue, with some lawmakers questioning whether it would be sufficient to impact the long-term sustainability of the Highway Fund.