Question 2 on the November ballot proposes to reduce, by about half, the excise tax on motor vehicles that are under six years old. It would also exempt new or leased hybrids and other alternative-energy and highly fuel-efficient vehicles from Maine's sales tax. And it would give those same vehicles' owners a three-year grace period from paying excise taxes.
But in the eyes of some voters, there's a catch: "We're here today to kick off the no on question 2 campaign which is a proposal that will absolutely gut the auto exise tax and also strip municipalities and communities of all the funding they need to take care of roads and ensure that our roads are safe."
Lizzy Reinholt is spokesperson for the NO on 2 campaign to convince voters to reject the citizen initiative. She spoke alongside several elected town officials and municipal leaders in Portland. "Most people in Maine never think about municipal government and the reason they don't is because it works, but we need to have some dollars to make it work and this could take away critical dollars."
John Sylvester is a selectman in the town of Alfred. He says his town's most recent excise tax revenues totaled 535 thousand dollars, a significant part of the local budget. But he says that amount would drop by more than a third if the referendum is passed. Sylvester says such a drop would have a devastating effect on his town's ability to pave, plow, and repair local roads.
Anne Swift-Kayatta, a Cape Elizabeth Town Councilor, has similar concerns. "The excise tax change proposed would cut an estimated 750 thousand dollars in excise revenues per year to Cape Elizabeth. That's a lot of money. Close to half of the excise tax revenue that we collect annually." "Every time there's an opportunity for Maine families to enjoy some local tax relief we have town politicians crying foul and spreading doom and gloom scenarios and threats to scare voters into opposing tax relief."
Chris Cinquemani is head of the YES on 2 campaign, which bills the initiative as a way to put cleaner cars on the road and keep money in taxpayers' pocketbooks. The conservative think-tank Maine Heritage Policy Center wrote the legislation. "Maine has the 7th highest excise tax in the nation and 22 other states have no excise tax at all. So we took an opportunity here to get at one of the most hated and one of the most burdensome taxes in Maine. In terms of the environmental portion of the legislation, we want to make it easier and more affordable for the Mainers who choose to purchase one of these cleaner cars."
The YES on 2 campaign will kick off its campaign tomorrow in Westbrook. Speakers include Cinquemani, Tarren Bragdon of the Maine Heritage policy center and former candidate for governor Pat LaMarche.