AUGUSTA, Maine — Disabled veterans in Maine are no longer limited to one car when claiming an annual vehicle tax exemption, thanks in part to a lawyer who served in the Air Force.
The fairly bureaucratic issue surrounding excise taxes came up after Maine lawmakers expanded state law in 2021 to exempt all disabled veterans with a 100 percent permanent and total disability rating from paying the annual fee.
But Chris McGhee, a Scarborough resident and Air Force veteran who has a bad back from working on jets for 20 years as a tactical aircraft maintenance specialist, found out from local officials he could only claim the fee exemption on one vehicle, even though the language in Maine law includes no numerical limit.
Maine’s excise tax was enacted in 1925, and towns typically use its revenue to cover road maintenance. Vehicle owners pay it annually at their town offices prior to registering vehicles.
The tax takes into account the age of the vehicle and is calculated by multiplying the manufacturer’s suggested retail price, or MSRP, by a mill rate. For example, the owner of a five-year-old vehicle with an MSRP of $19,000 and mill rate of 0.0065 would owe $123.50.
McGhee got to work on fixing what he viewed as an error. He’s no novice on legal issues, as he runs his own firm as a Veterans Affairs disability lawyer while also advocating for military suicide prevention.
While fairly technical, McGhee said the vehicle issue was nonetheless important to him and his peers, especially those struggling financially. Maine leads New England and is fourth nationally in having veterans make up 9 percent of its population, according to 2022 Census data.
McGhee, 45, said Tuesday he wanted to ensure Maine’s veterans with the 100 percent disability rating “receive the recognition and support they deserve without unnecessary struggle.”
He contacted Secretary of State Shenna Bellows’ office and said he appreciated how the Democrat agreed to meet with him in October. Bellows told McGhee the tax exemptions would fall under Maine’s tax office, though McGhee said the Bureau of Motor Vehicles, which is run by Bellows, had informed towns the exemptions were restricted to one vehicle per veteran.
That’s similar to policies in other states, such as Massachusetts, which also limits veterans to one vehicle when claiming the annual fee exemption.
After discussions involving several state agencies, McGhee learned in November that Attorney General Aaron Frey had advised the secretary of state’s office that his interpretation of the law not limiting the number of exempt vehicles was correct.
Bellows, Adjutant General Douglas Farnham and officials with the motor vehicle and veterans’ services bureaus wrote a Nov. 28 letter to Maine towns that referred to permanently disabled veterans qualifying for tax exemptions on a “vehicle or vehicles,” putting the change into writing. The officials also said the state was working on allowing veterans to keep a special license plate rather than switch to a “disabled veteran’s plate” to receive the tax exemption.
Bellows spokesperson Emily Cook highlighted the partnership with the attorney general’s office, Maine Revenue Services, Bureau of Veterans’ Services and municipalities in clarifying the matter and said “a lot of good work went into this.”
The Legislature may consider another vehicle tax question in 2024, as a bill from Rep. Michael Lemelin, R-Chelsea, would expand the excise tax exemption to cover active-duty military members who are stationed outside the state as well as National Guard and reserve members.
On Dec. 12, McGhee registered and received an exemption for his two vehicles in Scarborough. His mission was complete.
The expanded exemption for permanently disabled veterans in Maine “was important to me, not only for securing rightful benefits for disabled veterans but also for challenging the misapplication of the law and breaking societal stigmas around disability and poverty,” he said.
