An Act To Bring Maine's Sales and Use Tax Law into Conformity with the Streamlined Sales and Use Tax Agreement
Maine Legislature, Session 122, LD 2073
Committee: Taxation
Amends: 5 MRSA §13090, 10 MRSA §1305, 30-A MRSA §5681, 36 MRSA §113, 36 MRSA §177, 36 MRSA §182, 36 MRSA §184, 36 MRSA §191, 36 MRSA §1482, 36 MRSA §1485-A, 36 MRSA §1752, 36 MRSA §1756, 36 MRSA §1760, 36 MRSA §1764, 36 MRSA §1766, 36 MRSA §18, 36 MRSA §1811-A, 36 MRSA §1812, 36 MRSA §1814, 36 MRSA §1817, 36 MRSA §1861, 36 MRSA §1862, 36 MRSA §1951-A, 36 MRSA §2015, 36 MRSA §2551, 36 MRSA §2552, 36 MRSA §2, 36 MRSA §2557

Legislative Document 
No. 2073 
H.P.1467 
House of Representatives, March 16,2006 
An Act To Bring Maine's Sales and Use Tax Law into Conformity 
with the Streamlined Sales and Use Tax Agreement 
Reported by Representative WOODBURY of Yarmouth for the Department of 
Administrative and Financial Services pursuant to Resolve 2005, chapter 110, section l. 
Reference to the Committee on Taxation suggested and ordered printed under Joint Rule 
218. 
Printed on recycled paper 
'I7l~ frl.17!~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §13090.K, sub-§2, as enacted by PL 2001, c. 
439, Pt. UUUU, §1, is amended to read: 
2. 
Source of fund. 
Beginning July 1, 2003 and every July 
1st thereafter, 
the State Controller shall 
transfer 
to 
the 
Tourism Marketing Promotion Fund an amount, as certified by the 
State Tax Assessor, that is equivalent to the Sum of 5% of the 7% 
tax imposed on tangible personal property and taxable services 
pursuant to Title 36, section 1811, and 5\ of the 7% tax imposed 
on meals and rentals pursuant to Title 36, chapter 723, for the 
first 6 months of the prior fiscal year after the reduction for 
the transfer to the Local Government Fund as described by Title 
30-A, section 5681, subsection 5. 
Beginning on October 1, 2003 
and every October 1st thereafter, 
the State Controller shall 
transfer to the Tourism Marketing Promotion Fund an amount, as 
certified by the State Tax Assessor, that is equivalent to the 
~~m of 5% of the 7% tax imposed on tangible personal property and 
taxable services pursuant to Title 36, section 1811, and 5% of 
the 7\ tax imposed on meals and rentals pursuant to Title 36, 
chapter 723, for the last 6 months of the prior fiscal year after 
the reduction for the transfer to the Local Government Fund. 
The 
tax amount must be based on actual sales for that fiscal year and 
may not consider any accruals that may be required by law. 
The 
amount transferred from General Fund 
saJ,es--and-~-t;aH revenues 
pursuant to this section does not affect the calculation for the 
transfer to the Local Government Fund. 
Sec. 2. 10 MRSA §1305, as amended by PL 1997, c. 668, §l, is 
further amended to read: 
S130S. 
Termina1 renta1 adjustment clauses; vehicle leases that 
are not sales or security interests 
Notwi thstanding any other provision of law, in the case of 
motor vehicles or trailers, a transaction does not create a sale 
or security interest merely because the agreement provides that 
the rental price is permitted or required to be adjusted upward 
or downward by reference to the amount realized upon sale or 
other disposition of the motor vehicle or trailer. 
A-~£aRsae~ieR 
may-ge-eeRsige~eg-a-saJ,e-~e~-F~~Feses-e~-~it;J,e-69T 
Sec. 3. 21-A MRS A §1l24, sub-§2, 1[B, as amended by PL 2003, c. 
673, Pt. EE, §1, is further amended to read: 
B. 
Two 
million dollars of the revenues 
from the taxes 
imposed under Title 36, Parts 3 and 8 and chapter 723 and 
credited to the General Fund, transferred to the fund by the 
Page l-LR3203(1) 
State Controller on or before January 1st of each year, 
beginning January 1, 1999. 
These revenues must be offset in 
an equitable manner by an equivalent reduction wi thin the 
administrative 
divisions 
of 
the 
legislative 
branch 
and 
executive branch agencies. 
This section may not affect the 
funds distributed to the Local Government Fund under Title 
30-A, section 5681. 
If the commission determines that the fund will not have 
sufficient revenues to cover the likely demand for funds 
from the Maine Clean Election Fund in an upcoming calendar 
year, by January 1st the commission shall provide a report 
of its projections of the balances 
in the Maine 
Clean 
Election Fund to the Legislature and the Governor and may 
request 
that 
the 
State 
Controller 
make 
the 
following 
transfers to the Maine Clean Election Fund from the General 
Fund: 
(1) 
Up to $2,000,000 no later than February 28, 2006, 
reflecting an advance of the transfer of the amounts 
that would be received on or before January 1, 
2007 
pursuant to this paragraph; 
( 2 ) 
Up to $2,000,000 no later than July 31, 
2006, 
reflecting an advance of the transfer of the amounts 
that would be received on or before January 1, 
2008 
pursuant to this paragraph; and 
(3) 
Up to $1,500,000 no later than September 1, 2004, 
reflecting a partial advance of the transfer of the 
amounts that would be received on or before January 1, 
2005 pursuant to this paragraph; 
Sec. 4. 30-A MRSA §5681, sub-§2, ,C, as amended by PL 2005, c. 
2, Pt. G, §1 and affected by §2, is further amended to read: 
C. 
"Annual growth ceiling" for fiscal year 2005-06 means 
$100,000,000. 
For subsequent fiscal years, "annual growth 
ceiling" must be determined by the State Tax Assessor by 
September 1st annually and means the annual growth ceiling 
adjusted by 
the 
lower of the increase for 
the previous 
fiscal year in the Consumer Price Index or the increase in 
receipts from the taxes imposed under Title 36, Parts 3 and 
and Title 36, chapter 723. 
The annual growth ceiling may 
not be less than the annual growth ceiling for the previous 
year. 
Sec. 5. 30-A MRSA §5681. sub-§5, as amended by PL 2005, c. 12, 
Pt. E, §l, is further amended to read: 
5. 
Transfers to funds. 
On the last day of each month, the 
Treasurer of State shall transfer to the Local Government Fund a 
percentage, as provided in this subsection, of the receipts from 
the taxes imposed under Title 36, Parts 
and 8, Title 36. 
chapter 723 and Ti.tle 36, section 2552, subsection 1, paragraphs 
A to F, and credited to the General Fund without any reduction, 
except 
that 
the 
postage, 
state cost allocation program 
and 
programming 
costs 
of 
administering 
state-municipal 
revenue 
sharing may be paid by the Local Government Fund. 
Any amounts 
transferred to the Local Government Fund in excess of the annual 
growth ceiling must be transferred to the Disproportionate Tax 
Burden Fund. 
The percentage transferred to the Local Government 
Fund on the last day of each month is: 
A. 
For months beginning before July 1, 2007, 
5.1~; and 
B. 
For months beginning on or after July 1, 2007, 
5.2~. 
Sec. 6. 36 MRSA §113. sub-§4 is enacted to read: 
4. 
AllOWances 
for 
new 
technological 
models. 
The 
State 
Controller may transfer from the General Fund amounts authorized 
by the State Tax Assessor egual to monetary allowances paid to 
retailers and certified service providers as defined in section 
1752 for new technological models pursuant to a contract between 
the 
governing 
board 
of 
the 
Streamlined 
Sales 
and 
Use 
Tax 
Agreement. authorized pursuant to chapter 921. and the retailer 
or certified service provider under that agreement. or subject to 
pj;trformance standards established by the governing board. For a 
period 
not 
to 
exceed 
months 
following 
the 
voluntary 
registration 
through 
the 
Streamlined 
Sales 
and 
Use 
Tax 
Agreement I s central registration process of a retailer that is 
not 
reguired 
to 
register 
by 
section 
1754-B. 
the 
monetary 
allowance may include a percentage of tax revenue generated by 
the retailer. These amounts transferred must be deposited into a 
dedicated. nonlapsing account to be used solely for the purpose 
of paying these expenses. Interest earned on balances in the 
~c~ount accrues to the accouRt. The 
ass~r shall notify the 
State Controller of the amounts to be transferred pursuant to 
this section. 
Sec. 7. 36 MRSA §177, sub-§l, as amended by PL 1999, c. 708, 
§9, is further amended to read: 
1. 
Generally. 
All sales and use 
taxes collected by 
a 
person pursuant to Part 3, all taxes collected by a person under 
color of Part 3 that have not been properly returned or credited 
to the persons from whom they were collected, all taxes collected 
by or imposed on a person pursuant to chapter 451 or 459, all 
fees collected pursuant to chapter 719 and all taxes collected by 
, 
a person pursuant to chapter 723 or 827 constitute a special fund 
in trust for the State Tax Assessor. 
The liability for the taxes 
or 
fees 
and 
the 
interest or 
penalty 
on 
taxes 
or 
fees 
is 
enforceable 
by 
assessment 
and 
collection, 
in 
the 
manner 
prescribed in this Part, 
against the person and against any 
officer, director, member, agent or employee of that person who, 
in that capacity, is responsible for the control or management of 
the funds or finances of that person or is responsible for the 
payment 
of 
that 
person's 
taxes. 
An 
assessment 
against 
a 
responsible individual pursuant to this section must be made 
within 6 years from the date on which the return on which the 
taxes were required to be reported was filed. 
An assessment 
pursuant to this section may be made at any time with respect to 
a time period for which a return has become due but has not been 
filed. 
Sec. 8. 36 MRSA §177, sub-§3, as amended by PL 1999, c. 414, 
§8, is further amended to read: 
3. 
Notice to segregate. 
Waeaeve~ If the State-~aH-Assess9~ 
fi~aEis assessor determines that the payment of the trust funds 
established under subsection 1 will be 
jeopardized by delay, 
neglect or misappropriation or wa9a9veF-aay ~ 
person fails to 
make payment of taxes or file reports as required by Part 3, or 
by chapter 451, 459, 723 or 827, the assessor may direct that 
person to segregate the trust funds from and not to commingle 
them with any other funds or assets of that person. 
All taxes 
that are collected after receipt of the notice of the segregation 
requirement must be paid on account to the assessor until the 
taxes are due. 
The assessor shall establish in the segregation 
notice the manner 
in which the taxes are to be paid. 
The 
segregation requirement 
remains 
in effect until 
a 
notice of 
cancellation is given by the assessor. 
Sec. 9. 36 MRSA §177, sub-§4, as amended by PL 2003, c. 705, 
§2, is further amended to read: 
4. 
Revocation for nonsegregation. 
If aay g person who is a 
retailer under Part 3 
9~L a fuel supplier, retailer, distributor 
or importer subject to Part 5 or an operator under chapter 723 
fails to make the required payments on account to the 
Stat:e-~aH 
AsseSS9~ assessor, 
the 
assessor 
may 
revoke 
any 
registration 
certificate that has been issued to that person. 
The revocation 
is reviewable in accordance with section 151. 
Sec. 10. 36 MRSA §182, sub-§l, as enacted by PL 2001, c. 583, 
§8, is amended to read: 
1. 
Generally. 
The State Tax Assessor may, 
through the 
Attorney General, file an action in Superior Court applying for 
an order to enjoin from doing business any person who has: 
A. 
Failed to register with the lnu;:eali assessor when the 
person is required to register by any provision of Part 3 or 
Part 5 or chapter 723 or by any rule adopted pursuant to 
this Title, provided that the assessor has provided written 
notice and the person continues to fail to register 15 days 
after receiving notice from the assessor of such failure; 
B. 
Failed to file with the assessor any overdue return 
required by Part 3 or Part 5 or chapter 723 within 15 days 
after receiving notice from the assessor of such failure: 
C. 
Failed to pay any tax required by Part 3 or Part 5 Qr. 
chapter 723 when the tax is shown to be due on a return 
filed by that person, or that is otherwise conceded by that 
person to be due, or has been determined by the assessor to 
be due and that determination has become final; 
D. 
Knowingly filed a false return required by Part 3 or 
Part 5 or chapter 723; or 
E. 
Failed to deduct and withhold, or truthfully account for 
or pay over or make returns of, income taxes in violation of 
the provisions of chapter 827. 
Sec. 11. 36 MRSA §184, sub-§3, as enacted by PL 2003, c. 452, 
Pt. U, §1 and affected by Pt. X, §2, is amended to read: 
3. 
""Person"" defined. 
For purposes of this section, the 
word "person" includes, in addition to its defined meaning in 
section 111, subsection 3, an officer, director, member, agent or 
employee of another person who, in that capacity, is responsible 
for the control or management of the funds and finances of that 
person or is responsible for either the collection or ~ 
payment 
of that FetaileF~s person's trust fund taxes. 
Sec. 12. 36 MRSA §191. sub-§3·B is enacted to read: 
3-B. 
Streamlined Sales and Use Tax Agreement. 
The State 
Tax Assessor and any certified service provider as defined by 
section 1752 shall comply with the confidentiality and privacy 
reguirements set forth in the Streamlined Sales and Use 
Tax 
Agreement as adopted pursuant to chapter 921. 
Sec. 13. 36 MRSA §1482, sub-§5, tn, as amended by PL 1997, c. 
175, §1, is further amended to read: 
D. 
Ne 
Except 
as provided in subsection 
and section 
1485-A, no portion of any excise tax once paid may be repaid 
to any person by reason of the transfer of vehicles or 
discontinuance of the use of a vehicle. 
Sec. 14. 36 MRSA §1485-A is enacted to read: 
§1485 A. Excise tax reimbursement allowed in certain cases 
1. 
Reimbursement. 
A person 
engaged 
in the 
business of 
renting automobiles 
for 
a 
period of less than one year is 
~ntitled to reimbursement of excise tax paid as provided by this 
section. The State Tax Assessor shall determine the reimbursement 
to be paid to a person filing a return pursuant to subsection 2. 
~eimbursement is determined by computing the total excise tax 
reim~ursement entitlement during 
the 
most 
recently 
completed 
pe..Liod from July 1st tILJune 30th for which the person has filed 
a return pursuant to subsection 2. An excise tax reimbursement 
entitlement accrues for each vehicle excise tax paid in the 
completed period for which the associated Maine registration was 
surrendered prior to the expiration of the associated 12-month 
excise tax period, unless the excise tax was credited to another 
registration, in which case the 12-month period continues to run 
in association with the replacement registration. The amount of 
the reimbursement is equal to the amount of the excise tax paid 
in order 
to 
register 
the original vehicle multiplied by 
a 
fraction, the numerator of which is the number of complete months 
short of 12 months during which the registration was surrendered 
and the denominator of which is 12. 
2. Retu,rn 
r_eqyiJ:~. A 
per~on entitled to a 
reimbursement 
pursuant to subsection 1 must file a return with the State Tax 
Assessor on or before September 1st annually. The return must 
include the information required by the State Tax Assessor to 
Jie-.termine the person's excise tax reimbursement entitlement. For 
gQod cause, the State Tax Assessor may extend the September 1st 
filing deadline for a period not to exceed one year. 
3. Treasurer of State; notification. Upon the determination 
of the reimbursement amount to be paid to a person, the State Tax 
Assessor shall inform the Treasurer of State of the determination 
and the Treasurer of State shall make the reimbursement. Unless 
the reimbursement is paid before November 1st of the year in 
which the return required in subsection 2 is filed or within 60 
days of the filing of that report, whichever is later, interest 
at the rate provided in section 186 must be paid for the period 
between the expiration of the deadline and the time of payment. 
Sec. 15. 36 MRSA §1752. as amended by PL 2005, c. 12, Pt. 0, 
§1 and Pt. TTT, 
§1 and affected by Pt. 0, §5 and Pt. TTT, §4 
and amended by c. 218, §§ll to 17 and c. 332, §13, is further 
amended to read: 
§1752. Definitions 
The following words, terms and phrases when used in chapters 
to 225 have the meaning ascribed to them in this section, 
except where the context clearly indicates a different meaning~i 
I. 
Advertisement. 
"Advertisement" 
means 
any 
public 
announcement of whatever 
kind or character 
and 
includes 
any 
notice or announcement in any radio or television broadcast, 
newspaper, magazine, catalog, circular, handbill, sign, placard 
or any billboard. 
I-A. 
Aircraft. 
"Aircraft" means 
any powered contrivance 
designed for navigation in the air except a rocket or missile. 
I-B. 
Automobile. 
"Automobile," 
for 
purposes 
of 
section 
~ 
subsection 17-i! ~, means a self-propelled.L 4-wheel motor 
vehicle designed primarily to carry passengers and not designed 
to run on tracks. 
I-C. 
Business. "Business" includes any activity engaged in 
by any person or caused to be engaged in by him with the object 
of gain, benefit or advantage, either direct or indirect. 
I-D. 
Casual 
sale. 
"Casual 
sale" 
means 
an 
isolated 
transaction in which tangible personal property or a 
taxable 
service is sold other than in the ordinary course of repeated and 
successive transactions of like character by the person making 
the sale. "Casual sale" includes transactions at a bazaar, fair, 
rummage sale, picnic or similar event by a civic, religious or 
fraternal organization that is not a registered retailer. The 
sale by a registered retailer of tangible personal property that 
that retailer has used in the course of the retailer' s business 
is not a casual sale if that property is of like character to 
that sold by the retailer in the ordinary course of repeated and 
successive 
transactions. 
"Casual 
sale" 
does 
not 
include 
any 
transaction in which a retailer sells tangible personal property 
or a taxable service on behalf of the owner of that property or 
the provider of that service. 
"Casual sale" includes any sale by 
a personal representative in the settlement of an estate, unless 
the sale is made through a retailer or unless the sale is made in 
the continuation or operation of a business. 
;t-K ... ---Gu&~--<!ORIpUt-er--6&n:va£e--p~~~aJR ... ---·!.C-us-t-om--€eHlIH:l~eF 
sef~waFe-~~~~~'-~~~-eemp~~eF-sef~wa£e-~~-~-WF~&~&-eF 
pFepaFeQ-eH€I~s4veJY-~~~-~~~-~~-~~Fr--~G~&&9ffi-eeHlp~~eF 
sef~waFe--pF~Fam!!---GGe-&--no-t:---.i-nG-I-ude---a--.!.·€~££-e4!..'--e£--pFewFi:~~eR 
pFe~Faffi-~~--~~-ae~e-~--e~i&&&-~~~-~-~eBeFal-~-~~~-sale T 
lease-e£-~~~-~-~~-~Re-~e~£am-~-~~~~~~V&~peG-eB 
a--G~~~-~~-~--fe~--iB-be~&e-~r--~-eK~~~~~~--pFewFi~~eB 
pFe~Faffi-~~-ba&-~~~~~-~e-~-a-~~-~~--e~s~effieF~s 
Beees-~-G--a-~€-l:l~~em--G<HlIp-Ut-e-t"--sef~waFe-¥~-am!'--&e--~he--eH-t-e-n-t:--ef 
~Re-~~~£~~~-~-&e-~he-~~-&ba&-~ae-~~~-feF 
~Re-ffieQifiea~ieB-is-sepaFa~ely-s~a~eQT 
I-I!". Clean fuel. 
"Clean fuel" means all products or energy 
sources used to propel motor vehicles, as defined in Title 29-A, 
section 
101, 
other 
than 
conventional 
gasoline, 
diesel 
or 
reformulated 
gasoline, 
that, 
when 
compared 
to 
conventional 
gasoline, 
diesel or 
reformulated gasoline, 
FesQl~s result in 
lower 
emissions 
of 
oxides 
of 
nitrogen, 
volatile 
organic 
compounds, carbon monoxide or particulates or any combination of 
these. 
"Clean fuel" includes, but is not limited to, compressed 
natural gas: 
liquefied natural gas: 
liquefied petroleum gas: 
hydrogen: hythane, which is a combination of compressed natural 
gas and hydrogen: dynamic flywheels: solar energy: alcohol fuels 
containing not less than 85% alcohol by volume: and electricity. 
I-G. 
Clean fuel vehicle. 
"Clean fuel vehicle" means 
a 
vehicle that may be propelled by a clean fuel or a fuel-cell 
electric vehicle that uses any fuel. 
I-H. Agreement. "Agreement" means the Streamlined Sales and 
Use Tax Agreement entered into by the State Tax Assessor on 
behalf of this State pursuant to section 7124. 
1-1. 
Alcoholic 
beverages. 
"Alcoholic 
beverages" 
means 
beverages that are suitable for human consumPtion and contain .5% 
or more of alcohol by volume. 
l-J. Bundled 
tr~~tion. "Bundled transaction" means the 
retail sale of 2 or more distincL...and identifiable products for 
one nonitemized price. 
"Bundled transaction" does not include: 
A. Sales of real property and services to real property: 
B. A sale in which the sale price varies or is negotiable 
based on the selection by the purchaser of the products 
included in the transaction: 
C. 
A sale of tangible personal property and a service in 
which the tangible personal property is essential to the use 
of the service and is provided exclusively in connection 
with the service, and the service is the true object of the 
transaction; 
D. A sale of services in which Qne service is_Movided that 
is essential to the use or receipt of a 2nd service and the 
first service i~vided exclusively in connection with the 
2nd service and the 2nd service is the true object of the 
transaction; 
E. 
A 
t..rJm§~tion 
_tha~.ruUJ,l~S 
taxable 
products 
and 
nontaxable products in which the seller's purchase price of 
the taxable products is 10% or less of the total purchase 
price of the bundled products or the seller's sale price of 
the taxable products is 10% or less of the total sale price 
of the bundled products; or 
F. 
A transaction that includes exempt tangible personal 
property and taxable tangible personal property in which the 
transaction 
includes 
food 
and 
food 
ingredients. 
drugs. 
durable medical 
eguipment. 
mobility enhancing 
eguipment. 
oyer-the-counter 
drugs. 
prosthetic 
devices 
or 
medical 
supplies 
and 
where 
the seller's purchase 
price of 
the 
taxable products is 50% or less of the total purchase price 
of the bundled products or the seller's sale pr ice of the 
taxable products is 50% or less of the total sale price of 
the bundled products. 
For 
purposes 
of 
this 
subsection, 
"distinct and identifiable 
products" does not include items such as packaging. 
wrapping 
materials. labels. tags and instruction guides that accompany the 
retail sale of a product and are incidental or immaterial to the 
sale: 
any product provided free of charge with the required 
purchase of another product, if the sale price of the product 
purchased does not vary depending on the inclusion of the product 
provided free of charge; or any item that is part of the sale 
price of the product. 
For purposes of this subsection, the term "one nonitemized price" 
does not include a price that is separately identified by product 
on binding sales or other supporting sales-related documentation 
made available to the customer in paper or electronic form, 
including, but not limited to, an invoice, bill of sale, receipt, 
contract. service agreement. lease agreement. periodic notice of 
rates and services, rate card or price list. 
J.-:-K. 
Ce.J;tifif;td __ Ate:r;yice 
prQv:i~~r. 
"Certified 
service 
provider" means an agent certified under the agreement to perform 
all of a seller's sales and use tax functions. other than the 
seller's obligation to remit tax on its own purchases. 
l-L. CO]lputer. 
"Com~ter" means an electronic device that 
accepts information in digital or similar form and manipulates it 
for a result based on a seguence of instructions. 
I-M. C<t-~~tt!mX.e. "Computer software" means a set of 
coded instructions designed to cause a computer or automatic data 
processing equipment to perform a task. 
2-A. 
Directly. 
"Directly," 
when 
used 
in 
relation 
to 
production 
of 
tangible 
personal 
property, 
refers 
to 
those 
activities 
or 
operations 
which 
constitute 
an 
integral 
and 
essential 
part 
of 
production, 
as 
contrasted 
with 
and 
distinguished 
from 
those activities or 
operations 
which 
are 
simply incidental, convenient or remote to production. 
2-D. 
J}eliyer~H~r~nicallr. "Delivered electronically" 
means delivered to the purchaser by means other than tangible 
storage media. 
2-£. 
DeU.Y-e~bAJ.:ft!l,;~Delivery charges" means charges by 
~~eller of tangible personal propeIty or taxable services for 
preparation 
and 
delivery 
to 
a 
location 
designated 
by 
the 
purchaser 
of 
the 
property 
or 
services. 
"Delivery 
charges" 
includes, 
but is not limited to, 
charges for transportation, 
shipping, postage, handling, crating and packing. 
2-F. 
Dietary sUP»lement. 
"Dietary 
supplement" 
means 
any 
product, other than tobacco, intended to supplement the diet that: 
A. 
Contains 
one 
or 
more 
of 
the 
following 
dietary 
ingredients: 
(1) A vi tamini 
(2) A mineral; 
(3) An herb or other botanical; 
(4) An amino acid; 
(5) A dietary substance for use by humans to supplement 
the diet by increasing the total dietary intake; or 
(6) A concentrate, metabolite, constituent. extract or 
combination 
of 
any 
ingredient 
described 
in 
this 
paragraph; 
B. 
Is intended for ingestion in tablet. capsule, powder, 
softgel, 
gelcap or liquid form or, if not intended for 
ingestion in such a 
form, 
is not represented as being a 
conventional food and is not represented as being for use as 
a sale item of a meal or of the diet; and 
c. 
Is 
required to 
be 
labeled as 
a 
dietary supplement, 
identifiable by the "Supplemental Facts" box found on the 
~1~a~bue~l~~ausL-~r~e~q~u~iur~e~d~~p~u~~suant 
to 
Code 
of 
Federal 
Regulations, Section 101.36. 
2-G. 
Direct mail. 
"Direct mail" 
means 
printed material 
~liY~red or distributed by United States mail or other delivery 
service to a mass audience or to addressees on a mailing list 
provided by the purchaser or at the direction of the purchaser 
~b~~ the 
cost of 
th~tems is not billed directly to 
the 
recipients. 
"Direct mail" 
includes tangible personal property 
supplied directly or indirectly by the purchaser to the direct 
mail seller for inclusion in the package containing the printed 
material. 
"Direct mail" 
does 
not 
include multiple 
items 
of 
printed material delivered to a single address. 
2-D. 
Drug. 
"Drug" 
means 
a 
compound, 
substance 
or 
preparation, 
and 
any 
component 
of 
a 
compound, 
substance 
or 
preparation, 
other 
than 
food 
and 
food 
ingredients, 
dietary 
supplements or alcoholic beverages, that is: 
A. Recognized in the official United States Pharmacopoeia, 
official HO!'MWjLgthic 
Phcu:~~eia of the United States or 
official United States Pharmacopoeia and National Formulary, 
or a supplement to any of them: 
B. 
Intended for 
u~e in the diagnosis, 
cure, mitigation, 
treatment or prevention of disease: or 
C. Intended to affect the structure or any function of the 
~ 
2-I. Electronic. "Electronic" means relating to technology 
with 
electrical. 
digital, 
magnetic, 
wireless, 
optical, 
electromagnetic or similar capabilities. 
3. 
Farm tractor. "Farm tractor" means any self-propelled 
vehicle designed and 
used primarily as 
a 
farm 
implement for 
drawing plows, mowing machines and other implements of husbandry. 
~-Ry---~~--s~aplesY---~~~1r--stap*esu--~--'eee 
p~ee~ets-e~eiRa~i*y-eeRSQffiee-'e~-aQffiaR-Re~~iskffieRtT 
!.!G ~eee~y- -&t-ap-J...e.&-'!.. - ~~-s- -Ret. - ~-no-J.-ude- - 6 p4-F4~'I:I.e'l:l.67 - -ffial-t. - -&r--viRe~s 
*i~~e~sf-~~--G~1R*&r-4€~Q-~~r-seeas--&r--9&¥&~~&--S~€~-~-a~e 
e~eiRa~i*y-~-s~~-ga~s-~-~-'e~RtaiRs-~--~-eeRReetieR 
witR-~~&-~---s~~--'e~RtaiRsf-~~1~&r-~~~--¥4~~m4£-s--aRe 
p~epa~atieRs--iR--*i~~ier--pewee~eer--~~aRy*a~T--tag*etr--eapsy*er 
*eBeR~e--&r--p1ll-~-&r~--~1-4-~-s-~~t,.&~~--s'l:l.ppJemeR~-s-~--ae~YReESr 
eHeepE-~R-~~-~-~Re--p~e&eF1pt.1eR-~~-~-phy-s4€4~R7--waEeF r 
Page Il-LR3203(1) 
~Re*~Q~R~-mJ£€~a~-~~~-~aG-ea~geRa~eQ-wa~~~-~-~~-Qie~a~y 
s~esE~~~~eSf-eaRQy-aRQ-eeR~ee~~eRSf-aRQ-p~epa~eQ-~eeQT 
3-F. Food and food in~dieJJ.ts. "Food and food ingredients" 
means substances, whether in liguid, concentrated, solid, frozen, 
dried or dehydrated form, that are sold for ingestion or chewing 
by humans and are consYIDeJl~ their taste or nutritional value. 
"Food and food ingredients" does not include dietary supplements. 
alcoholic beverages or tobacco. 
4T--~e~T-~I~~~~a&&-ev~y-~~~~-e£-~~--&~~~ee~~e 
kep~T-~~-~~~r-aQ¥e~ei&eQ-a~-~--&&kQ-e~~-~~~-p~*ie 
Ee-~-~-p*aee-~~-~i¥i£~-~Qa~ee~&-~~-6QPp~4eQ--~r-~-ee 
~~aRs~eR~-e~-pe~maReRe-~~eSeS-aRQ-eeRaResT 
4-AL--~v~u;:~nCl-»QCl~d. 
"Governing 
board" 
means 
the 
governing board of the agreement. 
5. 
In this State or in the State. "In this State" or "in 
the State" means within the exterior limits of the State of Maine 
and includes all territory within these limits owned by or ceded 
to the United States of America. 
5-A. 
Internal human consumption. 
"Products 
for internal 
human consumption" meaR ~ 
edible products sold for 
human 
nutrition or refreshment and containers or 
iRSel'~meReS utensils 
provided simultaneously for the consumption of these products. It 
does not include 
sp~~~e~e~sT-~-t,-~r-:yil'l.e-\i~--1-i-q.u<H"-6-r-meQie~ReST 
EeR~esr--¥4~am4RsT 
alcoholic 
beverages, 
drugs, 
chewing 
gum. 
dietary supplements or e~~a~eeees tobacco. 
§-Rr--Li~e~T---2~~2~-Ras-~~-same-~~-as-~~-~i~*e 
68-AT-see~ieR-6T-s~9see~~eR-*aT 
5-C. LeClse or 
:t;"~IlYl. "Lease" or "rental" includes sublease 
or subrental and means any transfer of possession or control of 
tangible personal property for a fixed or indeterminate term for 
consideration. A lease or rental may include future options to 
purchase or extend. 
A. 
"Lease" or "rental" includes agreements covering motor 
vehicles and trailers in which the amount of consideration 
may be increased or decreased by reference to the amount 
realized 
upon 
sale 
or 
disposition of 
the 
property. 
as 
defined in Section 7701(h)(1) of the Code. 
a. "Lease" or "rental" does not include: 
(1) Any transfer of possession or control of property 
under 
a 
security agreement or deferred payment plan 
Page l2-LR3203(1) 
that requires the transfer of title upon completion of 
the required payments: 
(2) Any transfer of possession or control of property 
under an agreement that requires the transfer of title 
~on completion of required payments and payment of an 
.Qp_tiOJLJ;!ti~ __ t..llat does not ~~ceed the greater of $lOO 
and 1~ of the total required payments; or 
( 3) Providing tangible personal property along with an 
operator for a fixed or indeterminate period of time. A 
condition of this exclusion is that the operator is 
necessary for the equipment to perform as designed. For 
the purpose of this paragraph, an operator must do more 
than maintain, inspect or set up the tangible personal 
property. 
5-D. Load and leave. "Load and leave" means delivery to the 
purchaser by use of a tangible storage medium when the tangible 
storage medium is not physically transferred to the purchaser. 
fiT--LiyiB~-~aa£~e£&T-~b4y4~~-~~~~~~-&~~~~-F99msT 
sleepiR~--eF-~~&&~~~-~-~r-~-~~--e£--tFaileF 
spaee..-
6-A. 
Manufacturing 
facility. 
"Manufacturing 
facility" 
means a site at which are located machinery and equipment used 
directly and primarily in either the production of tangible 
personal property intended to be sold or leased ultimately for 
final use or consumption or the production of tangible personal 
property pursuant to a contract with the United States Government 
or any agency thereof. 
It includes the machinery and equipment 
and all machinery, equipment, structures and facilities located 
at the site and used in support of production or associated with 
the production. 
"Manufacturing facility" does not include a site 
at which a retailer is primarily engaged in making retail sales 
of tangible personal property not produced by the retailer. 
6-C. 
Mobilit~nbpcing egllipment. 
"Mobility 
enhancing 
eguipment" means equipment that is primarily and customarily used 
to provide or increase an individual's ability to move from one 
place to another, that is appropriate for use either in a home or 
a motor vehicle and that is not generally used by persons with 
normal mobility. "Mobility enhancing eguipment" includes repair 
~lliLJeplacement parts. "Mobility enhancing equipment" does not 
4.6 
include 
any 
motor 
vehicle or 
equipment 
on 
a 
motor 
vehicle 
normally provided by a motor vehicle manufacturer. 
7. 
Motor vehicle. "Motor vehicle" means any self-propelled 
vehicle designed for the conveyance of passengers or property on 
the public highways. 
"Motor vehicle" includes an all-terrain 
vehicle and a snowmobile as defined in Title 12, section 13001. 
7-A. 
Vehicle. "Vehicle" has the same meaning ascribed to 
that term by Title 29-A, section 101, subsection 91. 
7-B. 
Machinery and equipment. 
"Machinery and equipment" 
means 
machinery, 
equipment 
and 
parts 
and 
attachments 
for 
machinery and equipment, but excludes foundations for machinery 
and equipment and special purpose buildings used to house or 
support machinery and equipment. 
7-C. 
Nonprofit. 
wRj,eR .thaJ:. has been 
Revenue Service to be 
of the Code. 
"Nonprofit" 
refers 
to 
an organization 
determined by the United States Internal 
exempt from taxation under Section 501 (c) 
8T--~~-~B4-Q£4Bk~-~~-aFe-~~~-&?-~he-~~~~~-aBQ 
FeaQy-~eF-eeBsQmp~j,eB-wj,~Re~~-~~F~ReF-pFepaFa~j,eBf-aBQ--
~T--~~~-feeQ-~-Q£4Bk~--~~-~~~-aB-~~~~-wRese 
sa*es-~-~-aaQ-Q£4Bk~-~~-~F&-p£epa£eQ-~-~-Fe~aj,*eF 
aeee~B~--ie~-~F&-~-~-~--~h~-e6~a8*i6kMeB~~6--~~ess 
Feeej,p~sT--
8-B. 
Prepaid callinq service. 
"Prepaid calling service" 
means the right to access exclusively telecommunications services 
that must be paid for in advance that enables the origination of 
calls using an access 
number or authorization code or both, 
whether manually or electronically dialed, and that is sold in 
predetermined units or dollars, the number of which declines with 
use in a known amount. 
TRe--G-a-J.~~-F&g.Aa~-ef--t-be--&e-F-V-~-j,s 
eeBsj,QeFeQ--~--&a~--wi~RiR---t-be--~~~--i~--~-~~~F---~eF 
eeBsiQeFa~j,eB--t~~-p~ag.g.-~--~a&-¥eBQe£~~-~~-e~-~~-iB 
~Re-~~---~~-~he-~~-eF-~~~~~-p£epa4Q-~~~~-SeFYiee 
eees-B~-~~-p~a~-a~--t-be-~~-p~ag.g.-ef-~~--~-sa*e 
e F - ~~~ 
-is- - QeemeQ- ~4 
- ~alEe - -pl-ace- -a~ - ~he- -GU-&t~'-6- - sRippj,B~ 
aQQFessT-~~--~--t~~-4~--Be--i&em-~~~r-~--~he--e~s~e~eF~s 
si**iB~-~~-eF-~~-*eea~ieB-~~~-wi~R-~~-e~s~e~eF~s 
mesi*e-~~-B~mseFT The sale of the service is deemed to 
occur on the date of the transfer for consideration of the 
service. 
8-C. 
Pr~i~1firel~~alliA9 service. 
"Prepaid wireless 
calling service" means a teleCQ...mmunications service that provides 
the right to use 
mobile wireless service as well as other 
nontelecommunications services. including the dOwnload of digital 
products 
delivered 
electronically. 
content 
and 
ancillary 
!iervices, that must be paid for in advance and that is sold in 
predetermined units of dollars of which the number declines with 
use in a known amount. The sale of the service is deemed to occur 
on the date of the transfer for consideration of the service. 
4.6 
8-D. Prepared food. 
"Prepared food" is defined as follows. 
A. "Prepared food" means: 
(1) Food sold in a heated state or heated by the seller; 
( 2 ) Two or more food ingredients mixed or combined by 
the seller for sale as a single item; or 
(3) 
Food sold with eating utensils provided by the 
seller, 
including 
plates, 
knives, 
forks. 
spoons. 
glasses. 
cups. 
napkins or straws. 
"Eating utensils" 
does 
not include 
a 
container or packaging used to 
transport the food. 
B. 
"Prepared food" includes food and food ingredients and 
dietary supplements. 
but only when 
one or 
more 
of 
the 
requirements set forth in paragraph A are met. 
"Prepared 
food" includes all alcoholic beverages sold to be consumed 
on the premises where sold. 
C. "Prepared food" does not include: 
L~) Food that is only cut. repackaged or pasteurized by 
the seller; 
(2) 
Eggs, 
fish. 
meat. 
poultry and foods 
containing 
these raw animal 
foods that require cooking by the 
consumer as recommended by the United States Food and 
Drug Administration in chapter 3, part 401.11 of its 
Food Code in order to prevent food-borne illnesses; 
(3) 
Food 
sold 
bL--a 
sell_er 
whose 
proper 
classification 
under 
the 
North 
American 
Classi~ion System, or a successor system, 
manufacturing. except for bakeries: 
primary 
Industry 
is food 
(4) Food sold in an unheated state by weight or volume 
as a single item; or 
(5) 
Bakery 
items. 
including 
bread. 
rolls. 
bun.L. 
biscuits. 
bagels. 
croissants. 
pastries. 
doughnuts. 
Danish pastries. cakes. tortes. pies. tarts. muffins. 
bars. cookies and tQrtillas. if sold without eating 
utensils provided by the seller. 
8-E. Prescription. "Prescription" means an order, formula or 
recipe issued in any form of oral. written, electronic or other 
means of transmission by a duly licensed practitioner authorized 
by the laws of the State. 
8-F. 
Preyritten 
computer 
software. 
"Prewritten 
computer 
~!tware" means computer software. including prewritten upgrades, 
that is not designed and developed by the author or other creator 
to the specifications of a specific purchaser. Computer software 
created by combining 
or more prewritten computer 
software 
programs or portions thereof is prewritten computer software. 
"Pre.wri.t...t.e.~~L-.S.9.ftware" includes software designed arul 
~veloped by the author or other creator to the specifications of 
a specific purchaser when it is sold to a person other than the 
specific purchaser. When a person modifies or enhances computer 
software of which the person is not the author or creator, the 
p~rson is deem~~~be~~or or creator only of the person's 
modifications or enhancements. Prewritten computer software or a 
prewritten portion thereof that is modified or enhanced to any 
degree. 
when the modification or enhancement is designed and 
~eveloped to the specifications of a specific purchaser, remains 
prewritten computer 
software: 
except that when 
a 
reasonable, 
separately stated charge for the modification or enhancement is 
shown on an invoice or other statement of the price given to the 
purchaser. the modification or enhancement does not constitute 
prewritten computer software. 
9-A. 
Primarily. 
"Primarily," 
when 
used 
in relation to 
machinery or equipment used in production, means more than 50~ of 
the time during the period that begins on the date on which the 
machinery 
or 
equipment 
is 
first 
placed 
in 
service 
by 
the 
purchaser and ends 2 years from that date or at the time that the 
machinery or equipment is sold, scrapped, destroyed or otherwise 
permanently 
removed 
from 
service 
by 
the 
taxpayer, 
whichever 
occurs first. 
9-8. 
Production. 
"Production" 
means 
an 
operation 
or 
integrated series of operations engaged in as 
a 
business or 
segment 
of 
a 
business 
that 
transforms 
or 
converts 
personal 
property by physical, chemical or other means into a different 
form, composition or character from that in which it originally 
existed. 
"Production" includes film production. 
"Production" includes manufacturing, processing, assembling and 
fabricating operations that meet the definitional requisites, 
including biological processes that are part of an integrated 
process 
of manufacturing organisms 
or microorganic 
materials 
through the application of biotechnology. 
"Production" 
does 
not include biological processes except as 
otherwise 
provided 
by 
this 
subsection, 
wood 
harvesting 
operations, 
the severance of sand, gravel, oil, gas or other 
natural resources produced or severed from the soil or water, or 
activities such as cooking or preparing drinks, meals, food or 
food products by a retailer for retail sale. 
E. 
Prosthetic 
device. 
"Prosthetic 
device" 
means 
a 
replacement. corrective or supportive device worn on or in the 
human body in order to artificially replace a missing portion of 
the bo¢y. prevent or correct physical deformity or malfunction or 
support 
a 
weak or deformed portion of the body. 
"Prosthetic 
deyice" includes repair and replacement parts. 
F. Purchase price. "Purchase price" applies to the measure 
subject to use tax and has the same meaning as "sale price." 
G. Receive. "Receive," as used in section 1817, means: 
A. To take possession of tangible personal property: 
B. To make first use of services: or 
C. To take possession or make first use of digital goods, 
whichever happens first. 
"Receive" does not include possession by a shipping company on 
behalf of the purchaser. 
10. 
Retailer. "Retailer" means a person 
wRe-~-!'et:ai± 
sales-e!' who is required to register by section 1754-A or 1754-B 
or who is registered under section 1756. 
A. Retail sale. "Retail sale" means any sale, lease or 
rental in the ordinary course of business. "Retail sale" includes 
the sale of products for internal human consumption for resale 
through vending machines when sold to a person, more than 50% of 
whose gross receipts from the retail sale of tangible personal 
property are derived from sales through vending machines, 
in 
which case the tax must be paid by the retailer to the State. 
"Retail sale" does not include: 
A. Any casual sale; 
8f The sale to a retailer that has been issued a resale 
certificate pursuant to section 1754-8, subsection 2-8 or 
~-C of tangible 
p~~l property for 
resale, 
lease or 
umtal in the form of tangible personal property, except 
resale, lease or rental as a casual sale: 
~bJ:t_Iia~to a 
re.t.-.a.i..J&r that has been issued a resale 
certificate pursuant to section 1754-8, subsection 2-8 or 
2-C of a taxable service for resale, except resale as a 
casual sale: 
Df The sale to a retailer that is not required to register 
by section 1754-8 of tangible personal property for resale, 
lease or rental outside the State in the form of tangible 
personal property, 
except resale, 
lease or rental as 
a 
casual sale: or 
Ef The sale to a retailer that is not required to register 
by section 1754-8 of a taxable service for resale outside 
the State, except resale as a casual sale. 
11.--Re~ail-6ale.--~~~~~-~~~~aas-aRy-~~~~-~aa~i9~e 
pe~seRa*-~~~~-~~-~Re-~~~r~-~~~~~-e'-~~-~~--aRy 
p~~pese-e~Re~-~haR-~~-~~~-~~~~~-a-eas~ak-saker-iR 
'=Re-fe~RI-e.f--t~hl~-pe-r~--p-r-()pe-t'-t-y-.---'!-R&t.-a-.i:-l--sa-l-e-'.!.-akSe-RleaRS 
aRy-~a~e-~--a--~~l-e--seFYiee-4R--t~~~1r~-e~-9~siRess 
'eF-aRy-~~~~-~~-'eF-FeSaleT-eK~~-~~~~-a-eas~al 
sale ... 
+It-~~-t~~-~~r-iR&~akkmea~-lea6e-~~~-aRY 
e'=ReF--t~~~--e~--t~hl~~~l--p~epe~~y-~-'=Re 
'=i,=*e-~~-Fe~aiaeQ-~-s&G~Fi~y-~~-~-paY"'8R-t-~-~Re 
p~FeRaSe-p~4€e-a£4-~~~~~~~-~FaaS~FFeQ-la,=eF~ 
aRe 
+6t-~a~€-~-~~~~s-feF-~£~e~£a~-~~~~~a-,=e 
a-pe~~~-~~--Fesa-l-e--'=RFe~~R-¥~4~£~~~a-sela 
~e-a--pe-r~~~-~aaa-9g%-e.f-~~~-~i~~s-fFeRl 
ERe--Fe,=ail--sale--ef--EaR~i9le--peFseRa*--pFepeF,=y--aFe 
eeFiyea-~~~-SakeS--t~~-~&G.i:-~-Rla€R4Re6T---~-,=aH 
RI~s'=-ge-paia-9y-'=Re-~e,=aileF-,=e-'=Re-S,=a,=e ... --
+It--ARy-eas~al-sale~ 
+6t---Aay--sa-l-e--~-~--pe-r~--~e~~e£-ta-t~¥~-4R--'=Re 
se'=EleRleR,=--ef--aR--es,=a~eT-~~Rless--~Re--sale--is--Rlaae 
~hF9Q~h-~~~~~~-r-9F-~fi~e~~-~~-&a~-i6-~-~-~he 
e9R~iRQa~i9R-9F-9peFa~i9R-9i-a-aQsiR9SSf 
H t - -!J.'-he- ~le-r -1:9 --a- ~-&on- -e-~~- iR-~~~.i-B&S-S--9f 
FeR1:iR~-~~~~-~~-aQ~9~9ai~9sT-~~~~-~~-9f 
aQ~9~9ailes-~--aeeess9Fies-~~-aQ~9~9ai~esT-~~--F9R~al 
9F--~~-~-iR-~-~~~~-F9R~9a-~-~-sh9F~-~9F~ 
aasisf 
Ht--!J.'-he--&a-le-r-1:9--a-~-&on--e-~~-4R-~~~i-se-s-s--9f 
FeR~iR~-v4ae9-me4~-a-~~~~~r~~-¥~Qee-~9aia 
9F-yiae9-9~Qip~9R~-f9F-F9R~alf 
f9t--!J.'-he-~le-r-1:e--a-~-&on--e-~~-.,iR-~~~i-se-s-s--9f 
F9R1:iR~--9F--leasiR~--aQ~9~9ail9sT--9f--aQ~9~9ailes--f9F 
F9R~al-9F-leas9-f9F-9R9-y9aF-9F-~9F9f 
flit - - !J.'-he-~le-r -1:9 --a- ~-&on--e-~~ - .,iR- ~~ 
~iBe-s-& -9 f 
pF9YiaiR~-~le--~--sa1:elli1:9-~~~~~-~~~~~--9f 
assgeia~ea-e~~.,ipmefi~-~~-~~~-~--~&e-1:9-SQaSeFigeFs 
iR--e9fi1~fie~49fi--W~~~-~-~-~~--e-*~aG&G--eaa~e--9~ 
eH~eRa9a-satellite-teleyisieR-se~yieeSf-9~ 
f1t--!J.'-he--&a-1e-r-1:e--a-~-&on--e-~~-.,iR-~-be-~.i-B&S-S--9f 
~eRtiR~-~~~~~~-~--ayQ~e-ffi9Q4-a-~~~-e~Qip~eRtT 
9f-~~~B.,i~Q~e7--a~4~~~~~-~~~~.i-pm&&&-~eF-~eRtal 
PQFSQaRt-~~-a-~~~~~~~~&-a6-~-~-iR 
~itle-9-AT-see~i9R-ll-lg9T--
~~Y---Ree.iB~--AeQSeY--~R99~iR~--h9QSe~--~eaRS--eyeFy--h9QSeT 
e9~ta~eT-~~~-QB.,i~7-~~-~--gea1:r-~~~--~ete~ 
e9QF1:T-~£-a4~e£-~~-~-~&B&F-S~FQe~QFe-9£-~~~~F-lgeati9R 
keptT-~~-~int~~r-aQ¥eF1:~&eQ-9£-~~~~&-t9-~-be-~~~-t9 
ae--a--plaee--wheFe--liyiR~--~QaF~eFs--aFe--sQPpliea--f9F--pay--te 
t~aRsieR~-~F-~~--~~-9F--1:eBaB1:&r-~~-~~-9fie--9F 
aQj9iRiR~-9QilaiR~sT 
12-A. 
Rural 
conmunity health center. 
"Rural 
community 
health 
center" 
means 
a 
person 
that 
delivers, 
or 
provides 
facilities for the delivery of, comprehensive primary health care 
in a place or territory that is classified as rural according to 
the most recent federal decennial census. 
13. 
Sale. "Sale" means any transfer, exchange or barter, in 
any manner or by any means whatsoever, for a consideration and 
includes 
leases-~-GG-B&FaE!"&S--FayaBJe--by--FeB1:al-~--J...~-fees 
f9F-~-be--~~-9f-~ssessi~-aBG-Q6e7-~--eB~y-w~fi-~-leases 
aRa-e9B~£ae~6--a-c~-<leemed--by--1:he-State-!J.'-a-K- l\ssesso-l'-~~-be--.i-B-lieQ 
9f-PQFehaS9 lease or rental of tangible personal property. 
I3-A. 
Sale at retail. 
"Sale at retail" means retail sale. 
13-B. Sale prj,ce. ..Sal!;L ... ..P~" means the total 
~~igeration, valued in money, 
whether received in 
otherwise. 
amount of 
money or 
A. "Sale price" includ~s cash, credit. property and services 
for which tangible persQnal property or taxable services are 
sold, leased, or rented without any deduction for: 
(1) The seller's cost of the property sold: 
(2) The cost of materials used, labor or service CQst, 
interest. losses, all costs of transportation to the 
seller, all taxes imposed on the seller and any Qther 
expense Qf the seller: 
(3) Charges by the seller for any services necessary to 
complete the sale, other than delivery or installation 
charges 
that are separately stated on 
the 
invoice, 
billing or similar document given to the purchaser: 
~~he value 
of 
any 
prqpgrty or 
service that is 
transferred 
to 
the 
purchaser 
along 
with 
tangible 
persona~operty or a taxable service subject to tax 
under this Part in a bundled transaction: or 
12) 
Credit for 
any trade-in, 
except as provided in 
section 1765. 
B. 
"Sale 
price" 
includes 
consideration 
received 
by 
the 
seller from 3rd parties if: 
(1) The seller actually receives consideration from a 
party other than the purchaser and the consideration is 
directly related to a price reduction or discount on 
the sale; 
(2) 
The seller has an obligation to pass the price 
reduction or discount through to the purchaser: 
(3) The amount of the consideration attributable to the 
~le is fixed and determin..a.,ple by 
th~eller at the 
time of the sale of the item to the purchaser: and 
(4) One of the following criteria is met: 
(a) The purchaser presents a coupon, certificate 
or other documentation to the seller to claim a 
price 
reduction 
or 
discount 
when 
the 
coupon, 
certificate 
or 
documentation 
dist.r.ibuted ~ granted by a 
3rd 
understanding that the 3rd party 
any seller to whom 
the 
coupon, 
documentation is presented: 
is 
authorized, 
party with the 
will reimburse 
certificate or 
(b) The purchaser id~~ifies himself or herself to 
the seller as a member of a group or organization 
entitled to 
a 
price 
reduction or discount. 
A 
"preferred customer" card that is available to any 
~mer does not constitute membership in such a 
group: and 
(c) The price reduction or discount is identified 
as a 3rd-party price reduction or discount on the 
invoice received by the purchaser or on a coupon, 
certU.lc.ate or other documentation presented by 
the purchaser. 
C. "Sale price" does not include: 
(1) Discounts that are allowed by a seller and taken by 
a purchaser on a sale, including cash discounts, term 
discounts and coupons that are not reimbursed by a 3rd 
party: 
(2) Interest, finance charges and carrying charges from 
credit extended on the sale if the amount is separately 
stated on the invoice, bill of sale or similar document 
given to the purchaser; 
(3) Any taxes legally imposed directly on the consumer 
that are separately stated on the invoice, bill of sale 
or similar document given to the purchaser; 
(4) Installation charges that are separately stated on 
the invoice, billing or similar document given to the 
purchaser; or 
(5) Delivery charges that are separately stated on the 
invoice, 
billing or 
similar 
document 
given 
to 
the 
purchaser. 
1.4 .. - - -Sa-J.&. -p~iee ... - ..!'-S-a,l-e- -P-F-i-Ge-'!. -lReaRS- -t-he--1;.&1;.al- - ~*l-t.- -o'f- - a 
~e~ail--sale--yal~ea--iR--lReReYT--wRe~Re~--~eeeiyea--iR--lReRey--e~ 
etRe~wiseT 
tlt--Se~yiees-wRieR-a~e-a-pa~~-ef-a-~e~ai*-salef-aRa 
ta}--~~~-~eeeip~ST-~--e~eQi~s-~-p~epe~~y-~-aRY 
kiRQ-~~-~~~-~-aRy--ameQR~--~~-~~-~~eQ~~--is 
a~~eweQ-~-~~~--&elle~-~~-~Re--~~~~~r-~~~-aRy 
QeQQe~ieR-~~-~~~-~ae-€es~-~-~~-~~p&~~y-selQT 
~Re-€e~~-~-~~-ffia~e~ial&-QseQT-~~-~--~~~iG&-ees~T 
iR~e~es~-paiQT-lesses-e~-aRy-e~Re~-eHpeRsesT---
ta}--~~~-~~-easR-~~-~-e~eQi~-~-~-~Re 
~e~Q~R-e~-me~eRaRQise-PQ~SQaR~-~e-Wa~~aR~yt 
t6}--~~~-~~~~-p~epe~~y-~~~~~~~Q&~~&r-WReR 
~Re-~Ql~-p~iee-is-~e~QRQeQ-ei~Re~-iR-easR-e~-9y-e~eQi~t 
t4}--~~~~-~eeeiyeQ-~~--~-e~-~~~~~~-iR 
iRs~alliR~-~-~~~-e~-~epai~iB~-~~~~~~y-se~QT 
i~-sepa~a~e~y-eRaF~eQ-e~-S~a~eQt 
t9}--~-~--eRaF~eQ-~-~~~~~~--iR-~~-~--a 
~~a~Qi~y--eF--~ipT--aS--a--speei~iea~~y--s~a~eQ--SeFYiee 
eRaF~eT-wReR-~ha~-~-~~~~~~~~-&y-a-Re~elT 
me~elT-~~~~~~-~--e~aeF-ea~iB~-~~~~-~-i~s 
empleyees-as-wa~est 
te}--~Re-affi9~B~-~-~~~-~~-~h&-YRi~eQ-S~a~es 
eR-~~-w~~~--Fe&pee~-~-~e~a4~--&&~&r-~~--impeseQ 
QpeR--~~--~e~a4~e~--~~--~~--9&&&Qffi&~r--~--aRY 
maRQ~ae~Q~eFS.!.T--impo-t"~-e-r~'-r-a-l€G~G-l-~~-~~-eHeise 
~aHf 
t+}---~-~-ef--~~a&&p&~~a~i&&-~~~-~~-Fe~aileF.!.s 
plaee-ef-~~~~~~-~-~~-~~-~~-wa~a-&aipffie&~-is 
maQe-~~~~~y-~~-~Re--~Q~eaa&e~r-~~~-~~--~ReSe 
eRa~~eS-~r&-~~~~--S~a~eQ-~-~~-~~aRSpeF~a~ieR 
eeeQFS-~-~~~-eemmeR-€a~~~~~7-~~~~~~~~-e~ 
~Re-YRi~ee-S~a~es-~ai±f 
t8}---~Re--~~~-~~-~--~~~--~r--&ee~ie&--~le9T 
sQ9see~ieR-llf 
tlg}---~-JeaQ-a€iQ-~~~~~y-~~--iffipe&eQ-~-*i~le 
68T-see~ieR-leg4T-SQ9See~ieR-a-&T 
14-B. 
Special DlObile equipment. 
"Special mobile equipment" 
means any self-propelled vehicle not designed or used primarily 
for 
the 
transportation of 
persons 
or 
property that 
may 
be 
operated or moved only incidentally over the highways, including, 
but not limited to, road construction or maintenance machinery, 
farm 
tractors, 
lumber 
harvesting 
vehicles 
or 
loaders, 
di tch-digging apparatus, stone crushers, air compressors, power 
shovels, cranes, graders, rollers, well drillers and wood sawing 
equipment. 
14-£. 
School. 
"School" 
means 
a 
public or 
incorporated 
nonprofit 
primary, 
secondary 
or 
postsecondary 
educational 
institution that has a regular faculty, curriculum and organized 
body of pupils or students in attendance throughout the usual 
school year and that keeps and furnishes to students and others 
records 
required 
and 
accepted 
for 
entrance 
to 
schools 
of 
secondary, collegiate or graduate rank. 
15. 
Storaqe. "Storage" includes any keeping or retention in 
this State of tangible personal property. 
16. 
Storaqe or use. "Storage" or "use" does not include 
keeping or retention or the exercise of power 
over tangible 
personal property brought into this State for the purpose of 
subsequently transporting it outside the State for use by the 
purchaser thereafter solely outside the State, or for the purpose 
of being processed, fabricated or manufactured into, attached to 
or incorporated into, other tangible personal property to be 
transported 
outside 
the 
State 
and 
thereafter 
used 
by 
the 
purchaser solely outside the State. 
17. 
Tanqible 
personal 
property. 
"Tangible 
personal 
property" means personal property that may can be seen, weighed, 
measured, 
feltr or 
touched 
or that is in 
any other 
manner 
Fe~eeiv€e--BY perceptible to the 
sensesT-~~-~-Be~--~Re*Hee 
F~~ats-aBe-~~€4i~~7-~~~~~-~~~~~~-e~eaaR~er-stee*s 
aRe-~-~£e--&~m~*ar-~~-e£--~&G&&~&&&&-~--eWReFsa~~. 
"Tangible personal 
property" 
includes electricity ... ---!!";I;aR~~B*e 
FeFseRa*--p-r~-t.-y..!I--1na-1ude-s--aRy-~~-e£--5G-ft-wa-r~-taat-~-6--no-t;,..-a 
eHstem, 
water, 
gas, 
steam 
and 
prewritten 
computer 
software 
FFe~Fam. 
17-B. 
Taxable service. 
"Taxable service" means 
tae-~€Btal 
9f-~iviB~-~~~~-~-a-a9teIT-~eemiB~-~-~~-~~r-tFa~leF 
eamFf 
the 
transmission and distribution of electricitYfL the 
rental or lease of aR-aQt9m9B~lef tangible personal property, the 
sale of prepaid wireless calling service and the sale of prepaid 
calling service. 
... --~ey.~is~-eaRlpT-.!.'~~-i-6-t.--o-arAp!!...-m&aRs-a--p-l-ace--wbe-Fe--t.eRt.s 
e~-~e~~-~-~~am~-eet.t.a~es-e~-~~-~~~~-a~-*eeat.ee 
aRe-~~~~-~~--t.~-p~B~-ie--9~~-aay-~--t.~~--~e~--aamaa 
aaeit.at.i9RT 
A. Tobacco. "Tobacco" means cigarettes, cigars, chewing 
Qr pipe tobacco or any other item that contains tobacco. 
19-B. TranSportation egyipment. 
"Transportation equipment" 
means: 
A. Locomotives and railcars that are used for the carriage 
of persons or property in interstate commerce; 
B. Trucks and truck tractors with a gross vehicle weight 
rating of 10,001 pounds or more, trailers. semitrailers and 
passenger buses that are: 
lJ,Lliggistered through the International Registration 
Plan; and 
(2) Operated under authority of a carrier authorized 
and certificated by the United States Department of 
Transportation or another federal authority to engage 
in the carriage of persons or property in interstate 
commerce: 
C. Aircraft that are operated by air carriers authorized and 
~ficated 
by 
the 
United 
States 
Department 
of 
Transportation or another federal authority or 
a 
foreign 
authority to engage in the carriage of persons or property 
in interstate or foreign commerce: or 
D . 
Co n t_a i ne r s 
de s i g>o-... 
n""e-"'d'----"f'-"o'-'r'-----'u""s"'--e~_"'o_"'n'_". _ __"a ... 
n"'d'"___c"'_o""m~p-"'o~n ... 
e'-"n~t"'------<pl:'-a""""-r-'"t~s 
attached or secured to, any of the property described in 
paragraphs A, B and C~ 
;;lOT - - T~aile); - eamp ... ---'-'~~-a-i-l-e-£- --o-arAp-'!... -meaRS - a--pl-ace- -wbe-F-e--spaee 
i 6 - -e-t -t: ~--e4- -w-i-t-b- -9 F- - w-i ~iie~~ - -EHH'-v-i-oe- -'-aG 1-l_1-t.ie-s-- ~ e - -t-be- -pub-l_1-G- - ~ e ~ 
~eR~iR~--e~--fe~--~he--pa~kiR~--aRe--aeeemmgeat.i9R--9f--aQ~9mgeile 
t~aile~6-wii-ieii-~~~-~F--*iviR~-~~a~~e~£-~~~-~at.al--p~iee 
shall-iRe*Qee-all-6e~viee-eaa~~e6-paie-t.9-the-le669~T 
20-A. 
Truck camper. 
"Truck camper" means a slide-in camper 
designed to be mounted on 
a 
truck body to provide temporary 
living quarters for recreational, camping, travel or other use. 
21. 
Use. "Use" includes the exercise in this State of any 
right or power over tangible personal property incident to its 
ownership, including the 
ee~ivat.i9R--o-f--iReemeT--wbe-t~--Feeeivee 
iR-ffi&Bey-~--~-&he-fe~m-~-~~--&eB&~i&&r-9y-a-~~--~~-Ehe 
~eREa~--&~-~~~~-~~--~~~~y--JeeaEeQ distribution of 
direct mail to recipients in this State. 
22. 
Camper trailer. 
"Camper trailer" has the same meaning 
as in section 1481, but without any restriction on length. 
24. 
Watercraft. 
"Watercraft" means 
any type of vessel, 
boat, 
canoe 
or 
craft 
designed 
for 
use 
as 
a 
means 
of 
transportation on water, other than a seaplane, including motors, 
electronic and mechanical equipment and other machinery, whether 
permanently or temporarily attached, which are customarily used 
in the operations of the watercraft. 
Sec. 16. 36 MRSA §J7S4-B, sub-§l, as amended by PL 2005, c. 
12, Pt. 0, §2 and affected by §5 and amended by c. 218, §§18 to 
21, is further amended to read: 
1. 
Persons 
required to register. 
EHeeFE--as--eEheFwise 
FFeviQeQ-i£-~~i~-~&~&r-Eae The following persons, other than 
casual 
sellers, 
shall 
register with 
the 
assesseF 
State 
Tax 
Assessor and collect and 
remit taxes in accordance with the 
provisions of this Part: 
A. 
Every seller of tangible personal property or taxable 
services, whether or not at retail, that maintains in this 
State 
any 
office, 
manufacturing 
facility, 
distribution 
facility, warehouse or storage facility, sales or sample 
room or other place of business: 
B. 
Every seller of tangible personal property or taxable 
services that does not maintain a place of business in this 
State but makes retail sales in this State or solicits 
orders, by means of one or more salespeople within this 
State, for retail sales within this State: 
C. 
Every lessor engaged in the leasing of tangible personal 
property located in this State 
El:laE-..Qo.e.&--no-t.--ma-i*J:~-ai-n--a 
F~aee-~--&~&iB&&&--iR-~~~-~EaEe-~-~~&-~e~a-i~-~~-Ee 
FQ~eaaSeFs-fFem-Eais-~EaEe: 
D. 
Every person that makes retail sales in this State of 
tangible personal property or taxable services on behalf of 
a principal that is outside of this State if the principal 
is not the holder of a valid registration certificate: 
E. 
Every agent, representative, salesperson, solicitor or 
distributor that receives compensation by reason of sales of 
tangible personal property or taxable services made outside 
this 
State 
by 
a 
principal 
for 
use, 
storage 
or 
other 
consumption in this State; 
~T--~~-peEse~-~-ma~a~e~-~~-~~~--~a-~~-Fe~Q*aF 
eeQFSe-~-9Qsi~ess-~--e~-~-eaSQa*-~~-a-~~~--Feeffii~~ 
ReQSe-~~-~~~~--eE--&~~~~~-~-4~--&A~S-~~~-~--~Ra~ 
ee**ee~s-~--~eeeives-~~~-~~-a-~~~r-£eeffi4~~-~-eF 
~eQFis~-eF-~Fai*eF-eaffip-i~-~Ris-S~a~ef 
G. 
Every seller of tangible personal property or taxable 
services that has a substantial physical presence in this 
State sufficient to satisfy the requirements of the due 
process 
and 
commerce 
clauses 
of 
the 
United 
States 
Constitution. 
The following activities do not constitute a 
substantial 
physical 
presence 
for 
the 
purpose 
of 
this 
paragraph: 
( 1) 
Solicitation of business in this State through 
catalogs, flyers, 
telephone or electronic media when 
delivery of ordered goods is effected by the United 
States 
mail 
or 
by 
an 
interstate 
3rd-party 
common 
carrier; 
( 2 ) 
Attending trade shows, seminars or conventions in 
this State; 
(3) 
Holding 
a 
meeting 
of 
a 
corporate 
board 
of 
directors or shareholders or holding a company retreat 
or recreational event in this State; 
(4) 
Maintaining a bank account or banking relationship 
in this State; eF and 
(5) 
Using a vendor in this State for printing, drop 
shipping or telemarketing services; and 
H. 
Every person that makes retail sales in this State of 
tangible personal property or taxable services on behalf of 
the 
owner 
of 
that 
property 
or 
the 
provider 
of 
those 
services. 
Sec. 17. 36 MRSA §1756, as repealed and replaced by PL 1995, 
c. 640, §4, is repealed and the following enacted in its place: 
§1156. 
Voluntary regi~ion 
1. 
Registration of seller~. 
A seller that is not required 
to register by section 1754-B may register under the provisions 
of the Streamlined Sales and Use Tax Agreement under chapter 921 
and this section. 
Th~eller maY-Qe 
regis~ed by an agent. 
The 
appointment of the agent must be in writing and the writing must 
be 
submitted to the State Tax 
Assessor if the assessor 
so 
requests. 
By registering, the seller agrees to collect and remit 
sales 
and 
use 
taxes 
for all taxable sales into 
the State. 
Withdrawal from or revocation by the State of the agreement does 
not 
relieve 
a 
seller of its responsibility to 
remit 
taxes 
p~eyiously or subs~~ 
__ C9llect~d on behalf of the State. 
The 
seller may cancel its registration at any time, in accordance 
wi.th 
uniform 
procedures 
adopted 
by 
the 
governing 
board. 
Cancellation does not relieve the seller of its liability for 
remitting any taxes collected to the State. 
The assessor may not 
use registration and collection of sales and use taxes under this 
section as a factor in determining whether the seller has a nexus 
with the State for any tax at any time. 
2. 
1kt4.Q.\'L...Qf_rpit.t~~~h.e1Lns.istering, the seller may 
select anyone of the following methods of remitting the taxes 
collected: 
A. 
Model L 
whereby a seller selects a certified service 
provider as its agent to perform all of the seller's sales 
or use tax functions other than the seller's obligation to 
remit taxes on its own purchases; 
B. 
Model 2, whereby a seller selects a certified automated 
system as defined in section 7122 to calculate the amount of 
tax due on each transaction; 
C. 
Model 
3, 
whereby 
a 
seller uses its own proprietary 
automated sales tax system that is a certified automated 
system; or 
D. Any other method allowable under Maine law. 
3. 
Amnesty for registrations. 
Subject to the limitations 
9~t forth in this section, an amnesty is provided to a seller who 
registers to payor to collect and remit applicable sales or use 
tax on sales made to purchasers in the State in accordance wi.til 
the terms of the agreement. 
The amnesty precludes assessment for 
uncollected or unpaid sales or use tax, penalty or interest with 
respect to sales made, during the period the seller was 
not 
registered in the State if: 
4.6 
A. 
The seller was 
not registered in the State in the 
12-month period preceding the eJfective date of the State's 
participation in the agreement; and 
B. Registration occ~rs before or within 12 mont~fter the 
effective date of the State's participation in the agreement. 
Absent frau~or intentional misrepresentation of a material fact 
DX'-__ tl1e 
se1,lJ~1-'L __ the ___ Q,!Jmesty __ is~_Uy 
__ effe.Qti v~~ong a&~e 
seller continue.§.~stratioJJ and continues payment or collection 
and_remittance of applicable sales or use taxes for a period of 
at least 36 months. The 
statut~ of limitations for asserting a 
j:.alLliability is 
tol~Sii!.d_n.9-th.i.s ___ :1.Ji-::mQnth period. The amnesty 
is applicable only to sales or use taxes due from a seller in its 
capacity as a seller and not to sales or use taxes due from a 
seller in its capacity as a purchaser. 
~~.iIDita.t_ioJUL.9~~esty~he aIT)Jlesty under subsection 3 
is not available to a seller with respect to: 
A. 
Any matter for which the seller has received notice of 
the commencement of an audit, which audit is not yet finally 
resolved, including any related administrative and judicial 
processes; and 
B. 
Any sales or use taxes already paid or remitted to the 
State or taxes collected by the seller. 
Sec. 18. 36 MRSA §1760, sub-§3, as amended by PL 1991, c. 824, 
Pt. A, §73, is repealed and the following enacted in its place: 
3. 
Food and food 
ing~eQient$~. __ ~S~a~le~s __ o~f __ ~f~o~o~d~~a~n~d~~f~o~o~d 
ingredients, other than prepared food. 
Sec. 19. 36 MRSA §1760, sub-§5 is repealed and the following 
enacted in its place: 
5. 
Prescription drugs. 
Sales of drugs for human use sold 
on a doctor's prescription. 
Sec. 20. 36 MRSA § 1760, sub-§5-A, as amended by PL 1975, c. 
623, §57, is repealed and the following enacted in its place: 
5-A. 
Prosthetic devices. 
Sales of prosthetic devices. 
Sec. 21. 36 MRSA §1760. sub-§6. as amended by PL 1999, c. 502, 
§§l to 3 and PL 2003, c. 689, Pt. B, §6, is repealed. 
Sec. 22. 36 MRSA §1760. sub-§9-B. as amended by PL 1999, c. 
657, §2l, is further amended to read: 
9-B. 
Residential electricity. 
~a±e--and--ee±iyel'y Sales of 
Fne--fi~&~--~~-~~~~-~~--e~--~esieeatia± electricity 
~e~ 
m9HtnT--~---~Re--~~~~--~---~hi&--~~~h---~~esieeatia± 
e±eetl."ieit.y.!.'-.me·anB--eleetl'ieit.y and transmission and distribution 
of electricity furnished to homes; 
mobilE; !1' nl:':"<, hoarding homes 
and apartment houses, with the exception of hotels and motels. 
Whe~e-~~~~~-~~~~iG~~y-46-~~~~-~RF&a~a-~~-~~~-~e 
me~e-~~-eRe-~~~~~-UR4~--aaG-~~-&a&-~~~~~-ana 
aist~ieQtien-u~414~y-~~~~~-~aFi~~-eR-~-~-~~-&a&i&r-tae 
~Q~nishin~-ef-~1~€~£4€4~y--4~-~~~~~~~-&a~-feF-eaea 
Qnit--~~-~~-~~--&aFiff--a~~J4e6~---~~--~~-~~--this 
sQeseetienT-~aelive~y~-means-t~ansmissien-ana-aist~ieQtienf 
Sec. 23. 36 MRSA §1760, sub-§9-D, as amended by PL 1999, c. 
414, §20, is repealed. 
Sec. 24. 36 MRSA §1760, sub-§§17 and 18 are repealed. 
Sec. 25. 36 MRSA §1760, sub-§19, as amended by PL 2003, c. 
588, §7, is repealed. 
Sec. 26. 36 MRSA §1760, sub-§20, as amended by PL 1991, c. 
546, §20, is repealed. 
Sec. 27. 36 MRSA §1760, sub-§23-C, fA, as affected by PL 2003, 
c. 614, §9, repealed and replaced by c. 
688, Pt. 
B, 
§12 and 
affected by §13, is amended to read: 
A. 
Motor vehicles, except 
aQtemee4Je6--r-ent.-ed--fe~--a--p&Fiea 
ef-l~~-~~~&&-yea~T all-terrain vehicles and snowmobiles 
as defined in Title 12, section 13001; 
Sec. 28. 36 MRSA §1760, sub-§45, as amended by PL 2005, c. 
218, §24, is further amended to read: 
45. 
Certain property purchased outside State. 
Sales of 
property purchased and used by the present owner outside the 
State: 
A. 
If the property is an automobile, as defined in Title 
29-A, section 101, sUbsection 7, and if the owner was, at 
the time of purchase, 
a resident of the other state and 
either employed or registered to vote there; 
A-I. 
If the property is a watercraft that is registered 
outside the State by an owner who at the time of purchase 
was 
a 
resident of 
another state and the watercraft is 
present in the State not more than 30 days during the 12 
months 
following its purchase for 
a 
purpose other 
than 
temporary storage; 
A-2. 
If the property is a snowmobile or all-terrain vehicle 
as defined in Title 12, section 13001 and the purchaser is 
not a resident of the State; or 
B. 
For more than 12 months in all other cases. 
Property, 
other than automobiles, 
watercraft, 
snowmobiles 
and 
all-terrain vehicles, that is required to be registered for use 
in this State does not qualify for this exemption unless it was 
registered by its present owner outside this State more than 12 
months prior to its registration in this State. 
If property 
required to be registered for use in this State was not required 
to be registered for use outside this State, the owner must be 
able to document actual use of the property outside this State 
for more than 12 months prior to its registration in this State. 
For purposes of this subsection, "use" does not include storage 
but means actual use of the property for a purpose consistent 
with its design. 
This 
exemption 
does 
not 
apply 
to 
leased 
property. 
Sec. 29. 36 MRSA §1760~ sub-§75, as enacted by PL 1989, c. 
871, §15, is repealed. 
Sec. 30. 36 MRSA §1760. sub-§82, as reallocated by RR 1999, c. 
1, §48, is repealed. 
Sec. 31. 36 MRSA §1760, sub-§83, as reallocated by RR 1999, c. 
1, §49, is repealed. 
Sec. 32. 36 MRSA §1760, sub-§85, as reallocated by RR 2001, c. 
1, §45, is repealed. 
Sec. 33. 36 MRSA §1760, sub-§§88 to 96 are enacted to read: 
88. 
Mobility 
enhancing 
equipment. 
enhancing equipment. 
Sales 
of 
mobility 
89. 
Short-term rental of automobiles. 
The 
sale, 
to 
a 
pe];~$on engaqeLin the bl).siness of renting automobiles for 
a 
period of less than one year, of integral parts of automobiles or 
acc~sories of automobiles for use in an automobile rented for a 
period of less than one year. 
2Jh __ 
CJigt,ain leases 
and 
rental~. 
Leases 
or rentals of 
tangible personal property that are subject to tax under chapter 
or chapter 723. 
91. 
Meals. 
Sales of food and drink that are subject to tax 
under chapter 723. 
92. 
Repair services. 
Charges 
Ieparately stated on the invoice, 
given to the purchaser. 
for repair services 
billing or similar 
that are 
document 
Title 10, section 1169, subsection 11. 
94. 
Recycling assistance fees. 
The fees imposed by section 
4832, subsection 1. 
95. 
Lead-acid 
deposit 
imposed 
by 
paragraph B. 
battery 
Title 
deposits. 
The 
lead-acid battery 
38, 
section 
1604, 
subsection 
2, 
96. 
Certain aj;~QQilteiL_e~qt. 
The sale, to a person 
f!n.gpged 
in 
the 
business 
of ---providing 
cable 
or 
satellite 
television services, of associated eguipment for rental or lease 
to subscribers in conj unction with a sale of extended cable or 
~xtended satellite television services. 
Sec. 34. 36 MRSA §1764, as amended by PL 2005, c. 218, §25, 
is further amended to read: 
§1764. 
Tax against certain casual sales 
The tax imposed by 
eSa~i;eF&--2.:t.:t--t.-G--~~9 this Part must be 
levied upon all eas\:la;t--i:'-e-nt.-a-l-s--e.f--1-.i:-..... .i:-~-~-\:l.a-£-t-e-£-6--i-a--a--sei;elT 
!'99J1!ialJ--h:o-u-s€-- 9!'--t.-o-u-r-i-EH;. - 94'- -&Fa.i:-1e-F- - -€~ -aaa -~ 
- all cas ual 
sales involving the sale of camper trailers, truck campers, motor 
vehicles, 
special 
mobile 
equipment 
eHee~i;--{a!'m--i;!'aei;9!'s--aHs 
l\:lJl!ae!'--£~4'¥€-6-t4~~--~~1~--G-F---;tease!'s, 
livestock 
trailers, 
watercraft or aircraft eHee~i;-~sese, unless the property is sold 
for resale at retail sale or to 
a 
corporation, 
partnership, 
limi ted liability company or limited liability partnership when 
the seller is the owner of a majority of the common stock of the 
corporation or of the ownership interests in the partnership, 
limited liability company or limited liability partnership. 
~sis 
seei;ieH-~-aG&-aFFJY-~~-i;se-~~~--G~-.:ti¥4~1J-~~~~-!'eai;ee 
i9F-~-t.~~1--9f-~€W~-~~-±§-~-6-~-i;se--€~~-~F-r-eHeerE 
i;sai;-~-~~-wb9--eWH&-~-~~-e-£~-i9F--~a&a~-~~--t~~-eHe 
~Fepe!'i;y-~-~£€--S&a~-~~~-i;Re-~~-ye~4'--.i:-&-~~~~-ieF 
eelleei;iHIJ-~~-~~K--w.i:-&a-~~--t9-~~-4'e~~a.:t--G~-~-\:lHiE 
!'elJa!'sless- -o-f- - tse- -n-umbe-r--ei- -<l-ay-fr-ie!'- -wh-i-oh--it- -3.-6- -Feai;es..-
Fo r 
purposes of this section, "special mobile eguipment" does not 
include farm tractors and lumber harvesting vehicles or loaders. 
Sec. 35. 36 MRSA §1766 is enacted to read: 
§1766. 
Relief from certain li~,i.liU 
A person 
rElgil;L~red 
lJJJQex~lliL-I1-J;"9yisions of sectiQ_p 1754-B 
QX section 1756, or a certified service provider acting as the 
agent of such a person, is relieved from additional liability 
res ul ting froIn 
th~il~.r.coLlectiJ2.n of sales and use tax when 
relying On erroneous data provided by the State Tax A.ssessor 
.r.~arding 
tax 
rates, 
boundaries 
or 
taxing 
jurisdiction 
Qssignments or when relyl1l9-Qn erroneous data provided by the 
assessor in a taxability matrix adopted by the governing board. 
Sec. 36. 36 MRSA §18lJ, first 1f, as amended by PL 2001, c. 439, 
Pt. TTTT, §2 and affected by §3, is further amended to read: 
A tax is imposed on the value of all tangible personal 
property and taxable services sold at retail in this State. 
The 
rate of tax is 
+%--G-&--t-he--~-a.,l-\i~--e€--l-j,.q-1*G-F---so-J.-d--4ii--lieeRseEl 
esta9lisRffieRts-~-Ele€iReEl-~~-~itle-~--seetieR-~--SQ9See tieR 
1§T-:iR-a€€e~Q-a~€e-w4~~~~~~~~-~~-~~r-~~-G-&-&&&-yalQe-e€ 
~eRtal-e~-~~~~~~~~-1&-aRy-he~~.,l7-~~~~-G-F--teQ~ist 
e~-~~a4.,l~~-~-~~~-&&&-yalQe-ef-~~£~-a.,l-~~-~~F-~-&~-less 
tRaB-eRe-y~a~-t>~--a£--au-t~~-e-;-':;-%--{H}--t-he--~l-ae--&~-p~epaFeEl-€eeElf 
.25% on the value of all fuel. electricity and transmission and 
distribution of electricity purchased for use at a manufacturing 
facility and 
5°'0 
on the value of all other tangible personal 
property and taxable services. 
Value is measured by the sale 
price, except as otherwise provided. 
Sec. 37. 36 MRSA §1811-A, as amended by PL 1981, c. 706, §22, 
is further amended to read: 
SI811-A. 
Credit for worthless accounts 
The tax paid on sales represented by accounts charged off as 
worthless may be credited against the tax due on a 
subsequent 
report filed within 3 years of the charge-off, 
9QtT-4~-~-SQeR 
aeeeQBts-a£e-~he~ea~~e~-€~.,l~~ee-~-t-he-~~~~~-r~-&a~-SRall-9e 
paiEl--~~B-~~-~~-£e--eelleeteEl subject to the following 
provisions. 
1. 
Definition. 
For purJ2QQes of this section, a worthless 
account means a bad debt~s defined in Section 166 of the Code, 
adjusted to exclude finance charges or interest. sales or use 
taxes 
charged 
on 
the 
sale 
price, 
uncollectible 
amounts 
on 
property that remains in the possession of the seller until the 
full sale ~r ice is 
pglc~l{penses incurred in attempting to 
collect any debt and repossessed property. 
2. Period. 
A credit may be taken on the return filed for 
t.he-IJeriod during which a 
~orthless account is written off as 
~ncollectible in the claimant's books and records and is eligible 
to be deducted for federal income tax purposes. 
A claimant who 
is not required to file federal income tax returns may claim the 
credit on a return filed for the period in which the worthless 
account is written off as uncollectible in the claimant I s books 
.and records and would be eligible for a bad debt deduction for 
federal income tax purposes if the claimant were reguired to file 
a federal income tax return. 
3. Subsequent collection. 
If a deduction is taken for a bad 
debt under subsection 2 and the debt is subseguently collected in 
whole or in part, the tax on the amount so collected must be paid 
and reported on the return filed for the period in which the 
collection is made. 
4. 
Refund auth.prize4. 
When 
the amount of the 
allo~ 
credit exceeds the amount of taxable sales for the period during 
which the worthless account is written off, a refund claim may be 
filed 
as 
provided 
in 
section 
2011. 
For 
purposes 
of 
this 
subsection, t~aLe of o~e~ayment is the due date of the return 
on which the credit could first be claimed. 
5. 
Claim by service provider. 
If the seller has selected a 
£ertified service 
provider 
as 
an 
agent 
to 
perform all 
the 
seller's sales 
or 
use 
tax 
functions, 
the 
certified service 
provider may claim the credit provided by this section on behalf 
of the seller. The certified service provider must credit or 
refund the full amount of any refund or credit received to the 
seller. 
6. 
Application of payments. 
For the purpose of reporting a 
payment received on a previously claimed worthless account, any 
payments 
made 
on 
a 
debt 
or 
account 
are 
applied 
first 
proportionally to the taxable price of the property or service 
and the sales tax thereon and secondly to interest, service 
charges and any other charges. 
l.~Ml.Q~_a~i..QD,.~_The J;!.ad debts under subsection 2 may be 
allocated among the member states if the books and records of the 
person claiming the bad debt allowance support such an allocation. 
Sec. 38. 36 MRSA §1812. sub-§l. as reallocated by PL 1999, c. 
790, Pt. A, 
§48, is repealed and the following enacted in its 
place: 
1. 
Computation. 
Every retailer shall add the sales tax 
imposed by section 1811 to the sale price on all sales of 
tangible personal property and taxable services that are subject 
to tax under this Part. The tax when so added is a debt of the 
purchaser to the retailer until it is paid, and is recoverable at 
law by the retailer from the purchaser in the same manner as the 
sale price. 
When the sale price involves a fraction of a dollar, 
the tax computation must be carried to the 3rd decimal place ( 
then rounded down to the next whole cent whenever the 3rd decimal 
ruace is 1, 2, 
or 4 and rounded up to the next whole cent 
whenever the 3rd decimal place is 5, 6, 7, 8 or 9. 
Sec. 39. 36 MRSA §1812, sub-§2, as amended by PL 1991, c. 846, 
§24, is further amended to read: 
2. 
Several items. 
When several purchases are made together 
and at the same time, the tax RlQsl: ~ 
be computed on each item 
individually or on the total amount of the several items, eHeepl: 
I:bal:--PQFebases--l:aHee--al:--eiffeFeal:--Fal:es--RlQst--ae--sepaFal:ely 
I:el:alee as the retailer may elect. 
Sec. 40. 36 MRSA §1812, sub-§4 is enacted to read: 
4. 
Application. 
The application of any tax rate change 
under section 1811 that is applicable to services provided over a 
p-eriod 
startin--9-~re and ending after the statutory effective 
date of that change is as follows: 
A. 
For a rate increase, the new rate applies to billing 
periods that start on or after the statutory effective date; 
and 
B. 
For 
a 
rate decrease, 
the 
new rate applies to bills 
rendered on or after the statutory effective date. 
Sec. 41. 36 MRSA §1814, sub-§4 is enacted to read: 
4. 
Recovery by purchaser. 
A cause of action against a 
retailer for over-collected sales or use taxes does not accrl.M!. 
until a purchaser has provided written notice to the retailer and 
the retailer has had 60 days to respond. 
The notice to the 
retailer must contain the information necessary to determine the 
validity of 
the 
request. 
In 
connection with 
a 
purchaser's 
request to a retailer for return of over-collected sales or use 
taxes, 
a 
retailer is presumed to have 
a 
reasonable business 
PI9ctice if, 
in the 
collection of sales or 
use 
taxes, 
the 
retailer 
uses 
either 
a 
provider 
or 
a 
system, 
including 
a 
proprietary system, that is certified by the governing board or 
the State, and has remitted to the State all taxes collected less 
any 
deductions 
or 
credits 
otherwise 
provided 
by 
law. 
The 
customer refund procedures in this subsection provide the first 
course of remedy available to purchasers seeking a return from 
the retailer of over-collected sales or use taxes. 
Sec. 42. 36 MRSA §1817 is enacted to read: 
§18l1. 
Sourcing rules 
~. 
App~i~i2~. 
The 
prov~s~ons of this section apply only 
to determine a seller's obligation to payor to collect and remit 
a sales or use tax with respect to the seller's retail sale of a 
product and do not affect the obligation of a purchaser or lessee 
to remit tax on the use of the product. 
2. 
General 
sourcing 
rules. 
Retail 
sales 
of 
tangible 
personal property and taxable services are sourced as provided in 
this subsection. 
For purposes of this subsection, "retail sale" 
does not include a lease or rental, except lease or rental of 
transportation equipment. 
A. 
When the product is received by the purchaser at a 
business location of the seller, the sale is sourced to that 
business location. 
B. 
When the product is not received by the purchaser at a 
business location of the seller, the sale is sourced to the 
location where the product is received by the purchaser or 
by 
the 
purchaser's 
don~~~9nated as 
such 
by 
the 
purchaser, including the location indicated by instructions 
for delivery to the purchaser or donee, known to the seller. 
C. 
When paragraphs A and 
B do not apply, 
the sale is 
sourced to the location indicated by an address for the 
purchaser that is available from the business records of the 
seller that are maintained in the ordinary course of the 
seller's 
business 
when 
use 
of 
this 
address 
does 
not 
constitute bad faith. 
D. 
When paragraphs A, Band C do not apply, the sale is 
sourced to the location indicated by an address for the 
purchaser obtained during the 
consummation of the sale, 
including the address of a purchaser's payment instrument, 
if no other address is available, when use of this address 
does not constitute bad faith. 
E. When paragraphs A, B, C and D do not apply, incluQin9..-the 
circumstance 
in 
which 
the 
seller is without 
sufficient 
information 
to 
apply 
the 
rules 
set 
forth 
in 
those 
paragraphs, the sale is sourced to the location from which 
the tangible personal --l2.£Qperty was shipped, from which the 
digi tal 
good 
or 
the 
computer 
software 
deli vered 
electronically was first available for transmission by the 
seller or from which the service was provided, disregarding 
for these purposes any location that merely provided the 
digital transfer of the product sold. In the case of a sale 
of prepaid wireless calling service, the sale is sourced to 
the location associated wi th tJ~!LmobilJLt~lephone number. 
3. 
Sourcing of lease transactions. 
The lease or rental of 
~9ible 
personal 
property, 
except 
lease 
or 
rental 
of 
otherwise provided in 
transportation 
eguipme~n~t __ ~a~n~d~~e~x~c~e~p~t~~a~SL-~~~~~~~~~~~~ 
subsection 4, is sourced as follows. 
A. 
For a 
lea~e or rental that reguires recurring periodic 
payments, 
the 
first 
periodic 
payment 
is 
sourced 
in 
accordance with the provisions of sub§ection 2. Periodic 
payments made suhseguent,to the first payment are §ourced to 
the primary property location for the pe,riod covered b.y each 
payment. The primary property location is an address for the 
property proyid~y the lessee that is available to the 
~sor from its records maintained in the ordinary course of 
business, when use of this address does not constitute bad 
faith. 
The 
primary property location is not altered by 
intermittent use at different locations, 
such as use of 
business property that accompanies 
employees 
on business 
trips and service calls. 
a. For a lease or rental that does not reguire recurring 
periodic payments, the payment is sourced in accordance with 
the provisions of subsection 2. 
This subsection does not affec~e imposition or computation of 
sales or use tax on leases or rentals based on a 
lump sum or 
accelerated basis or on the acguisition of property for lease. 
~~-2-u.r~i-D9-0-f __ c~rYin vEthicJ..e 
ll~ases. 
The lease or rental 
of motor vehicles, trailers, sttmitrailers or aircraft that do not 
gualify as transportation eguipment are sourced as follows. 
A. 
For a lease or rental that reguires recurring periodic 
payments, each periodic payment is sourced to the primary 
property location for the period covered by that payment. 
The primary property location is an address for the property 
provided by the lessee that is available to the lessor from 
its records maintained in the ordinary course of business, 
when use of this address does not constitute bad faith. The 
primary property location is not altered by intermittent use 
at different locations. 
a. For a lease or rental that does not reguire recurring 
~eriodi~ayment~_the payment is sourced in accordance with 
the provisions of subsection 2. 
~his subsection do~~~affect th~~osition or computation of 
sales or use tax on leases or rentals based on a 
lump sum or 
accelerated basis or on the acguisition of property for lease. 
Sec. 43. 36 MRSA §1861, as amended by PL 1995, c. 640, §6, is 
further amended to read: 
§1861. 
Imposition 
A tax is imposed, at the Fespee~ive rate provided in section 
1811, on the storage, use or other consumption in this State of 
tangible personal property or a 
taxable service, the sale of 
which would be subject to tax under section 1764 or 1811. 
Every 
person so storing, using or otherwise consuming is liable for the 
tax until the person has paid the tax or has taken a receipt from 
the seller, as duly authorized by the assessor, showing that the 
seller has collected the sales or use tax, in which case the 
seller is liable for it. 
Retailers registered under section 
1754-8 or 1756 shall collect the tax and make remittance to the 
assessor. 
The amount of the tax payable by the purchaser is that 
provided in the case of sales taxes by section 1812. 
When 
tangible personal property purchased for resale is withdrawn from 
inventory by the retailer for the retailer' s 
own use, use tax 
liability accrues at the date of withdrawal. 
Sec. 44. 36 MRSA §1862, as amended by PL 1987, c. 772, §24, 
is further amended to read: 
§1862. 
Taxes paid in other jurisdictions 
The Qse tax pFevisiens-e£-~~~£-~~~~-~~~-sRa~~ imposed 
by this Part does not apply wi~R-£e6pee~ to the use, storage or 
.Q..t..h.eI consumption in this State of purchases outside the State 
where the purchaser has paid a sales or use tax equal to or 
greater than the amount imposed by eRap~e£6-~~~-669 this Part 
in another taxing 
jurisdictionT-~-he---p-r-~-ef.-payme!lt.-~--t;he--~aH 
~e-&e-~~~~~~~-~~&-maae-By-~-he--~~~-~~-AssesseF. If the 
amount of sales or use tax paid in another taxing jurisdiction is 
not equal 
to or greater than the 
amount 
of tax 
imposed 
by 
eRap~eFs--2-l-l-~~-669 this Part, then the purchaser shall pay to 
the State Tax Assessor an amount sufficient to make the total 
amount of tax paid in the other taxing jurisdiction and in this 
State equal to the amount imposed by 
eRap~eF-s--2-l-l--t~-669 this 
Part. 
When 
tangible personal 
pro~ty is leased outside the 
State and subsequently brought into the State, a credit is not 
allowed under this section for sales or use tax paid in another 
jurisdiction 
with 
respect 
to 
periodic 
payments 
that 
are 
attributable to periods during which the property is primarily 
located in this State. 
Sec. 45. 36 MRSA §1951-A, sub-§l, as enacted by PL 1991, c. 9, 
Pt. E, §24, is amended to read: 
1. 
Monthly report and payment. 
Every retailer shall file 
wi th the State Tax Assessor, on or before the ;!'§ta ~ 
day of 
each month, a 
~eFe~t return made under the FaiRs-aRe penalties of 
perjury on SQ8a .a form as prescribed by the 
State-..!;l'-aH--Assesse~ 
may--p-r-e-s.o-r:-ibe---\:-bat--4iseleses assessor. 
The return must report 
the total sale price of all sales made during the preceding 
calendar 
month 
and 
such other 
information as 
the 
State--~aH 
Assesse~ assessor requires. The 
State-~-Assesse~ assessor may 
permit the filing of returns other than monthly. 
The 
State-~aH 
Assesse~ assessor, by rule, may waive reporting nontaxable sales. 
Upon application of a retailer, the 
State-..;r-aH--Assesse~ assessor 
shall issue a classified permit establishing the percentage of 
exempt sales. 
The classified permit may be amended or revoked as 
te-its-elassifi8atieR-waeReve~ if the State-~aH-Assesse~ assessor 
determines that the percentage of exempt sales is inaccurate. 
The State-~aH-Asse88e~ assessor may for good cause extend for not 
more than 30 days the time for making returns required under 
eaaFte£s--2.,l.,l--t-G--66e this Part. 
Every person subject to the use 
tax shall file similar FeF9£ts returns, at similar dates, and pay 
the tax or furnish a receipt for the same tax from a registered 
retailer. 
Sec. 46. 36 MRSA §§1966 to 1968 are enacted to read: 
§1966. 
Direct papaent pend ts 
1. 
Application and issuance. 
A manufacturer or utility 
th~t purchases tangible personal property or taxable services may 
apply to the State Tax Assessor for a direct payment permit. The 
assessor may, in the assessor's discretion, issue such a permit 
to the applicant if the assessor finds that: 
A. 
The collection of the taxes imposed by this Part will 
not be jeopardized by the issuance of such a permit: 
B. 
Because of the nature of the applicant's business, the 
permit will significantly reduce the work of administering 
the taxes imposed by this Part: 
c. 
The applicant's accounting system will clearly indicate 
the amount of tax that the applicant owes under this Part; 
and 
D. 
The 
volume 
a~plic_a~~akes 
taxab=l~e~~p~u~r~c=h~a~s~e~s~~i~n~~s~u~f~~f=i~c~i~e~n~t 
to justify the expense of regular audits by the 
assessor. 
2. 
~imit~ti.9..!J,S_~L~~q",i..remeDt..s. 
The 
asses~or, by rule. L 
maY provide for further limitations and reguirements regarding 
the issuance and use of a direct payment permit. 
The holder of a 
direct 
payment 
permit 
shall 
make 
a 
determination 
of 
the 
taxability 
of 
each 
purchase 
and 
then 
report 
and 
pay 
the 
gpplicable tax due directly to the assessor. 
The direct payment 
permit may be suspended or revoked by the assessor at any time if 
the assessor determines that the collection of any tax due from 
the permit holder is in jeopardy or that the permit holder has 
nQt complied with th~nditipns to which the permit is subject. 
Rules adopted pursuant to this subsection are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
§1967. 
Direct mail sourcing 
The State Tax Assessor, by rule, may establish procedures 
1'[hereby a-purchaser of 
dire~ail that is not a holder of a 
direct payment permit shall provide to the seller in conjunction 
with the purchase either a direct mail form prescribed by the 
assessor or information to show the jurisdictions to which the 
direct mail is delivered to recipients. Upon receipt of a direct 
mail form, the seller is relieved of its obligation to collect, 
payor remit the al?l?licable tax, and the purchaser is obligated 
to pay the applicable tax directly to the assessor. The direct 
mail form remains in effect for all future sales of direct mail 
by that seller to that I?urchaser until it is revoked in writing. 
Upon 
receil?t 
of 
information 
from 
the 
I?urchaser 
showing 
the 
btrisdictions 
to 
which 
the 
direct 
mail 
is 
delivered 
to 
recipients, the seller shall collect the tax according to the 
delivery information I?rovided by the purchaser. In the absence of 
bad faith, the seller is relieved of any further obligation for 
tax on any transaction for which the seller has collected tax in 
accordance 
with 
the 
delivery 
information 
provided 
by 
the 
purchaser. If the purchaser of direct mail is not a holder of a 
direct payment permit under section 1966 and does not provide the 
seller with either a direct mail form or delivery information, 
the seller shall collect the tax in accordance with section 1817, 
subsection 
2, 
I?aragral?h 
E. 
Rules 
adol?ted 
I?ursuant 
to 
this 
section are 
routine technical 
rules 
as 
defined in Title 
5, 
chapter 375, subchapter 2-A. 
§1968. 
Multiple points of use 
.1.~er~iJi~t;.~ of 
e~e.JmLtiQn. 
The State Tax Assessor, by 
rule, shall establish I?rocedures whereby a business I?urchaser 
khat is not a holder of a direct payment permit under section 
1966 that knows at the time of its I?urchase of a digital good, 
computer 
so£tware or 
taxable service that the digital good, 
computer 
software 
or 
tamable 
service 
will 
be 
concurrently 
available for use in more than one j_ur isdiction I?rovides to the 
seller an exemption certificate claiming multiple points of use 
in 
a 
form 
I?rescribed 
by 
the 
assessor. 
Upon 
receil?t of 
the 
exemption certificate, the seller is relieved of its obligation 
to collect. payor remit the applicable tax. 
The exemption 
certificate remains in effect for all future sales by that seller 
to that purchaser. except as to the specific apportionment of 
subsequent sales~til it is revoked in writing. 
Rules adopted 
pursuant 
to 
this 
subsection are 
routine 
technical 
rules 
as 
defined in Title 5. chapter 375. subchapter 2-A. 
2. P<umM!nt of tax. 
A business purchaser that provides an 
~x~~ption certificate claiming multiple points of use pursuant to 
~ubsection 1 shall report and pay the applicable tax directly to 
the 
assessor. 
The 
tax 
due 
must 
be 
calculated 
as 
if 
the 
apportioned amount of the digital good. 
computer software or 
taxable service had been delivered to each jurisdiction to which 
l4t...he sale is apportioned. The purchaser may use any reasonable. 
but consistent and 
uniform, 
method of 
apportionment that is 
~upported by the purchaser's books and records kept in connection 
with the sale. 
3. 
Certification oJ apP<lX-tionment. 
If the seller knows 
that the digital good. computer software or taxable service will 
be concurrently available for use in more than one jurisdiction. 
but 
the 
business 
purchaser 
does 
not 
provide 
an 
exemption 
certificate 
claiming multiple points 
of 
use 
as 
required 
in 
subsection 1. the seller may cooperate with the purchaser to 
determine the correct apportionment. 
The purchaser and seller 
may use any reasonable. but consistent and uniform. method of 
apportionment that is supported by the seller's and purchaser's 
books and records kept in connection with the sale. 
If the 
purchaser certifies to the accuracy of the apportionment and the 
seller accepts the certification, the seller shall collect and 
remit the tax pursuant to subsection 2. 
In the absence of bad 
faith. 
the seller is relieved of 
any further obligation to 
collect tax on any transaction for which the seller has collected 
tax pursuant to the information certified by the purchaser. 
_._. 
Direct pa~nt permi.t. 
A holder of a direct paymellt 
permit 
under 
section 
1966 
is 
not 
required 
to 
provide 
the 
exemption certificate required by subsection 1 to the seller. but 
!!lust follow the provisions of subsection 2 in apportioning the 
!,.ax due on a digital good. computer software or taxable service 
that will be concurrently available for use in more than one 
jurisdiction. 
5. 
Sourcing. 
If the seller knows that the product will be 
~Qncurrently available for use in more than one jurisdiction and 
the business purchaser does not have a direct payment permit 
under section 1966 
and does not provide the seller with an 
exemption 
certificate 
as 
required 
in 
subsection 
or 
certification pursuant to subsection 3. the seller shall collect 
and remit the tax based on the provisions of section 1817, 
subsection 2. 
6. 
GeA~..uMly. 
Tll~$..~ctj,on does 
not limit 
a 
person'....s. 
obligation to pay sales or use tax to a state in which a digital 
gQ9d, 
computer 
softwa~e or 
taxable 
service 
is 
concurrently 
available 
for 
use. 
This 
sectiQn does 
not limit a 
person's 
ability to claim a credit pursuant to section 1862 for sales Qr 
use tax legally due and paid in anQther taxing jurisdiction. 
The 
p-~ions of this section do not apply tQ 
computer software 
received in person by a business purchaser at a business locatiQn 
of the seller. 
As 
used in this section, 
"computer software" 
includes, 
without 
limitation, 
computer 
software 
delivered 
electronically. by load and leave or in tangible form. 
Sec. 47. 36 MRSA §2015, as enacted by PL 1993, c. 701, §8 and 
affected by §10, is repealed. 
Sec. 48. 36 MRSA §2551, sub-§§l-C to I-G are enacted to read: 
I-C. Ancillary services. "Ancillary services" means services 
that are associated with or incidental to the provision Qf 
telecommunications 
services, 
including, 
but 
not 
limited 
tQ, 
cQnference bridging service, detailed telecommunications billing 
service, directory assistance, vertical service and voice mail 
services. 
I-D. 
Call-by-call basis. 
"Call-by-call basis" 
means 
any 
method of charging for telecommunications services by which the 
price is measured by individual calls. 
I-E. 
Confere~ce bridging 
service. 
"Conference 
bridging 
service" 
means 
an 
ancillary 
service 
that 
links 
Qr 
more 
participants of an audio Qr video conference call and may include 
the 
prQv~s~on of 
a 
telephone 
number. 
"Conference 
bridging 
service" does not include the telecommunications services used to 
reach the conference bridge. 
I-F. Detailed t~~~JUlicati~s billiD9-J;i.ervice. "Detailed 
telecommunications billing service" means an ancillary service of 
separately stating information pertaining to individual calls on 
a customer's billing statement. 
I-G. 
Director~sist.~ce. "Directory assistance" means an 
ancillary 
-service 
of 
providing 
either 
telephone 
number 
information or address information or both. 
Sec. 49. 36 MRSA §2551, sub-§§5-A, 5-B and 6-A are enacted to 
read: 
5-A. 
Intern~tional 
telecommunications 
service • 
.:..'.J:nternational 
telecommunications 
service" 
means 
a 
lilecommunications service that originates or terminates in the 
!J.nited States and terminates or originates outside the United 
States, respectively. For purposes of this subsection, the United 
~es includes 
th~s~rict of Columbia and 
a 
territory or 
possession of the United States. 
5-B. 
Interstate 
telecommunications 
service. 
"Interstate 
~_lecommunications service" means 
a 
telecommunications service 
that originates in one state, territory or possession of the 
United States and terminates in a different state, territory or 
RQ.ssession of the United States. For purposes of this subsection, 
"United States state" includes the District of Columbia. 
6-A. 
MQbiltL-1f,ire_:le~e_~yice. "Mobile winass 
service" 
ID~a telecommunicatio~eryice that is transmitted, conveyed 
or 
routed, 
regardless of the 
technology 
used, 
in which 
the 
or iSLination 
point 
or 
termination 
point 
or 
both 
of 
the 
transmission, 
conveyance 
or 
routing 
is 
not 
fixed. 
"Mobile 
wireless 
service" 
includes, 
but 
is 
not 
limited 
to, 
telecommunications services provided by a commercial mobile radio 
service provider. 
Sec. 50. 36 MRS A §2551, sub-§8, as enacted by PL 2003, c. 673, 
Pt. V, §25 and affected by §29, is amended to read: 
8. 
Place of primary use. 
"Place of primary use" means the 
street address representative of where a customer's use of ffi9s~le 
telecommunications services primarily occursT-wsies. The place of 
primary use must be either the residential street address or the 
primary business street address of the customer and, in the case 
Q.f mobile telecommunications servicEls, it must als9 be located 
wi thin the licensed service area of the home service provider. 
For purposes of determining the place of primary use, "customer" 
means the person 9F-€Rt.it.y that contracts with the home service 
provider for ffi9sile telecommunications services or, if the ena 
HseF-9~-6Hes person that uses the telecommunicatio~ services is 
not the contracting party, the person that 
~s--t.-h&--ena--u-se-r--9~ 
SHes uses the services. The term "customer" does not include a 
reseller 
of 
ffi9s~le 
telecommunications 
services 
or 
a 
seFv~n~ 
facilities-based carrier 
HnaeF--aB--a~FeeffieBt providing mobile 
telecommunications services to seFve-tse ~ customer outside the ~ 
home service provider's licensed service area. 
Sec. 51. 36 MRSA §2551, sub-§8-A is enacted to read: 
.B.-A ... ~oskP..a-.i.d_._caJ.lin9.-se:r;yi(;e. "Post-paid calli.lliJ........§.ervice" 
means a telecomnunications service obtained by making payment on 
a call-by-call basis either through the use of a credit card or 
~ment mechanism such as a bank card, travel card, credit card, 
or debit card or by means of a charge made to a telephone number 
that is not associated with the origination or termination of the 
telecommunications service. "Post-paid calling service" includes 
a telecommunications service, except a prepaid wireless calling 
service that would be a prepaid calling service except that it is 
not exclusively a telecommunications service. 
Sec. 52. 36 MRSA §2551, sub-§9, as enacted by PL 2003, c. 673, 
Pt. V, §25 and affected by §29, is amended to read: 
9. 
Prepaid callinq service. 
"Prepaid calling service" 
means the right to access exclusively telecommunications services 
that must be paid for in advance aRe that enables the origination 
of calls using an access number or authorization code or both, 
whether manually or electronically dialed T 
and that is sold in 
predetermined units or dollars, the number of which declines with 
use in a known amount. 
Sec. 53. 36 MRSA §2551, sub-§§9-A and 9-B are enacted to read: 
9-A. 
P~ai~ireless calling service. "Prepaid wireless 
calling service" means a telecommunications service that provides 
the right to utilize mobile wireless service as well as other 
nontelecommunications 
services 
including 
the 
downloading 
of 
digital products delivered electronically. content and ancillary 
services. that must be paid for in advance and that is sold in 
predetermined units of dollars of which the number declines with 
use in a known amount. 
.9..:-B. 
PriJfirt.~Q.Q!munication service. "Private communication 
service" means 
a 
telecommunications service that entitles the 
customer to exclusive or priority use of a communications channel 
or 
group 
of 
channels 
between 
or 
among 
termination 
points. 
regardless of the manner in which the channel or channels are 
connected. 
It 
includes 
switching 
capacity. 
extension 
lines. 
stations and any other associated services that are provided in 
connection with the use of the channel or channels. 
For the 
purposes of this subsection, 
"communications channel" means 
a 
physical or virtual path of communications over which signals are 
transmitted between or among termination points, and "termination 
point" means the location where the customer either inputs or 
receives the communications. 
Sec. 54. 36 MRSA §2551, sub-§15, as enacted by PL 2003, c. 
673, Pt. V, §25 and affected by §29, is repealed. 
Sec. 55. 36 MRSA §2551, sub-§§15-A and 16-A are enacted to 
read: 
1.5-A. Sal.e price. 
"Sal~rice" m~ns the total amount of 
kQnsideration, including cash, credit, property and services, for 
which personal property or services are sold, leased or rented, 
~qlued in mQney, whetper received in money or otherwise, without 
any deduction for the cost of materials used, labor or service 
cost, interest, losses- or any-other expense of the seller. 
A. 
"Sale price" 
includes 
the value of 
any property or 
service that is transferred to the purchaser along with a 
service subject to tax under this chapter in a 
bundled 
~action. 
B. 
"Sale price" 
includes 
consideration received 
by 
the 
seller from 3rd parties if: 
(l) The seller actually receives consideration from a 
party other than the purchaser and the consideration is 
directly related to a price reduction or discount on 
the sale; 
(2) 
The seller has an 
ob~ation to pass the price 
reduction or discount through to the purchaser; 
(3) The amount of the consideration attributable to the 
sale is fixed and determinable by the seller at the 
time of the sale of the item to the purchaser; and 
(4) One of the following criteria is met: 
(a) The purchaser presents a coupon, certificate 
or other documentation to the seller to claim a 
price 
reduction or 
discount 
where 
the 
coupon, 
certificat~ 
or 
documentation 
is 
authorized, 
distributed or granted by a 
3rd party with the 
understanding that the 3rd party will reimburse 
any seller to 
whom 
the 
coupon, 
certificate or 
documentation is presented; 
(b) The purchaser identifies the purchaser to the 
seller as 
a 
member of a 
group or organization 
entitled to 
a 
price 
reduction or 
discount. 
A 
preferred customer card that is available to any 
customer does not consti tute membership in such a 
group; or 
(c) The price reduction or discount is identified 
as a 3rd-party price reduction or discount on the 
invoice received by the purchaser or on a coupon, 
certificate or other documentation presented by 
the purchaser. 
c. "Sale price" does not include: 
(1) Discounts allowed and taken on sales: 
(2) 
Allowances in cash or by credit made 
upon the 
return of services pursuant to warranty: 
(3) The price of services rejected by customers when 
the full sale price is refunded either in cash or by 
credit: or 
(4) The amount of any tax imposed by the United States 
or the State on or with respect to the sale of a 
service, 
whether 
imposed 
upon 
the 
seller 
or 
the 
consumer. 
16-A. Service address. "Service address" means: 
A. The location of the telecommunications equipment to which 
a 
customer's call is 
charged 
and 
from 
which 
the 
call 
originates or terminates, regardless of where the call is 
billed or paid; 
B. If the location described in paragraph A is not known, 
the 
origination 
point 
of 
the 
signal 
of 
the 
telecommunications service first identified by either the 
seller's 
telecommunications 
system 
or 
in 
information 
received by the seller from its service provider if the 
system used to transport the signal is not that of the 
seller; or 
C. If the locations described in paragraphs A and B are not 
known, the customer's place of primary use. 
Sec. 56. 36 MRSA §2551, sub-§20, as enacted by PL 2003, c. 
673, Pt. V, §25 and affected by §29, is repealed. 
Sec. 57. 36 MRSA §2551, sub-§§20-A, 20-B and 22 are enacted to 
read: 
20-A. 
TelecolIDunications 
services. 
"Telecommunications 
services" 
means 
the 
electronic 
transmission, 
conveyance 
or 
routing of voice, data, audio, video or any other information or 
signals 
to 
a 
point. 
or 
between 
or 
among 
points. 
"Telecommunications services" includes transmission, 
conveyance 
or routing in which computer processing applications are used to 
act on the form, code or protocol of the content for purposes of 
transmission, conveyance or routing without regard to whether the 
service is refe~~s "Voice oyer Internet Protocol" seryices 
or is classified by the Federal Communications Commission as 
enhanced or value added. "Telecommunications seryices" does not 
include: 
A. Data processing and information services that allow data 
to be generated. acquired. stored. processed or retrieved 
and delivered by an electronic transmission to a purchaser 
when the purchaser's primary purpose for 
the underlying 
transaction is to obtain the processed data or information: 
B. Installation or maintenance of wiring or equipment on a 
customer's premises: 
C. Tangible personal property: 
D. 
Advertising. 
including but 
not 
limited to 
directory 
advertising: 
E. Billing and collection services provided to 3rd parties; 
F. Internet access service; 
G. 
Radio 
and 
television 
audio 
and 
video 
programming 
services. regardless of the medium. including the furnishing 
of transmission. conveyance and routing of such services by 
the programming service provider. Radio and television audio 
and yideo 
programming services must 
include but not be 
limited to cable service as defined in 47 United States 
Code. 
Section 
(6) 
and 
audio 
and 
yideo 
programming 
services 
delivered 
by 
commercial 
mobile 
radio 
service 
providers, as defined in 47 
Code of Federal Regulations. 
Section 20.3; 
H. Ancillary services; or 
I. Digital products delivered electronically. including but 
not limited to software, music, video, reading materials or 
ringtones. 
20-B. 
Vertical 
service. 
"Vertical 
service" 
means 
an 
~ncillary service that is offered in connection with one or more 
telecommunications services that offers advanced calling features 
that allow customers to identify callers and to manage multiple 
calls 
and 
call 
connections, 
including 
conference 
bridging 
services. 
22. 
Voice mail service. 
"Voice mail 
service" 
means 
an 
ancillary service that enables the customer to store, send or 
receive recorded messages. "Voice mail service" does not include 
any vertical services that the customer may be reguired to have 
in order to use the voice mail service. 
Sec. 58. 36 MRSA §2552, sub-§l, 1f1fJ and K, as enacted by PL 
2005, c. 386, Pt. S, §6 and affected by §9, are amended to read: 
J. 
Personal support services; aBEl 
K. 
Residential training servicesT~ 
Sec. 59. 36 MRSA §2552, sub-§I, 1fL is enacted to read: 
L. 
Ancillary services. 
Sec. 60. 36 MRSA §2SS6, sub-§I, as enacted by PL 2003, c. 673, 
Pt. V, §25 and affected by §29, is amended to read: 
1. 
Identifying 
place 
of 
primary 
use. 
MeBiJ,e 
~eJ,eeemm~Biea~i9Bs-se~v4€es-~~~~eEl-~~~~~~~-plaee-9' 
p~ima~y-~~~~-~a&&G-iB-~~~~~~r-~Ae-€ha~~es-~~-~~-a~e 
4 
:9 i J, J, e El- By - 9-!" - .f -&-£ - ~-be- -<Hl&t.-()fMH'-'~ -horAe- --&&-p.,t-~ -p F-G-'ri.Qe. F- r -a Fe - Ele emeEl 
~ 9 - -be- -P-F-G-'rj,.de.d. - a ~ - ~-be- ~-<me-l':'-'-s- - p J, a se - .g..f- -P-F--.i.ma-F-j"- - ~ seT 
A home 
service provider is responsible for Obtaining and maintaining a 
record 
of 
a 
customer's 
place 
of 
primary 
use. 
Subject 
to 
subsection 2 and if the home service provider's reliance on the 
information provided by its customer is in good faith, the home 
service provider: 
A. 
May 
rely 
street address 
customer; and 
on 
the 
applicable 
supplied 
by 
the 
residential 
home 
service 
or business 
provider's 
B. 
May not be held liable for any additional taxes under 
this chapter based on a different determination of the place 
of primary use. 
Sec. 61. 36 MRSA §2SS6-A is enacted to read: 
§2556-A. Telecommunications sourcing 
1. Call-by-call basis. 
Except 
as 
otherwise 
provided in 
subsection :3, 
a sale of telecommunications services sold on a 
call-by-call basis must be source-d to the taxing jurisdiction 
where the call originates and terminates, if the call originates 
and terminates in the same jurisdiction, or otherwise to the 
taxing 
jurisdiction 
where 
the 
call 
either 
originates 
or 
terminates and in which the customer's service address is also 
located. 
~_. Other thap 
~l-by-ca~asis. Except as provided in 
_s-Yllsection 3, 
a sale of telecommunications services sold on a 
basis 
other 
than 
a 
call-by-call 
basis 
is 
sourced 
to 
the 
customer's place of primary use. 
.1~.e.ptions. The sale -of the following telecommunications 
services must be sourced as follows; 
A. A sale of a mobile telecommunications service is sourced 
to the customer's place of primary use: 
B. A sale of a post-paid calling service is sourced to the 
origination point of the telecommunications signal as first 
identified either by the seller's telecommunications system 
or. if the system used to transport the signals is not that 
of the seller, by information received by the seller from 
its service provider: and 
C. 
A sale of a private communication service is sourced as 
follows: 
(1) Service for a separate charge related to a customer 
channel 
termination 
point 
is 
sourced 
to 
the 
jurisdiction in which the customer channel termination 
point is located: 
(2) Service where all customer termination points are 
located entirely within one jurisdiction is sourced to 
that jurisdiction; 
(3) Service for a separate charge for segments of a 
channel between 2 customer channel termination points 
located in different jurisdictions is sourced 50% to 
each of those jurisdictions; and 
(4) Service for segments of a channel located in more 
than one jurisdiction that are not separately billed is 
sourced to each jurisdiction based on the percentage 
determined by dividing the number of customer channel 
termination points in that jurisdiction by the total 
number of customer channel termination points. 
Sec. 62. 36 MRSA §2557, sub-§30, as amended by PL 2005, c. 
218, §35, is further amended to read: 
30. 
Sales for resale. 
Sales of services to another service 
provider for resale; aRe 
Sec. 63. 36 MRSA §2557, sub-§31, as enacted by PL 2005, c. 
218, §36, is amended to read: 
31. Construction contracts with exempt organizations. Sales 
to a construction contractor or its subcontractor of fabrication 
services that are to be physically incorporated in, and become a 
permanent part of, real property for sale to any organization or 
government agency provided exemption under this section, except 
as otherwise providedTL 
Sec. 64. 36 MRSA §2557, sub-§§32 to 35 are enacted to read: 
32. 
Prepaid 
calling service. 
Sales 
of 
prepaid 
calling 
service: 
33. 
Prepaid wirliess calling service. 
Sales 
of 
prepaid 
wireless calling service: 
34. 
International 
teleconmunications 
service. 
Sales 
of 
international telecommunications service; and 
35. 
Interstate 
teleconmunications 
service. 
Sales 
of 
interstate telecommunications service. 
Sec. 65. 36 MRSA c. 723 is enacted to read: 
CHAPTER 723 
MEALS AlfD RENTALS TAX 
§4941. Meals and rentals tax 
The tax imposed in this chapter may be known and cited as 
the meals and rentals tax. 
§4942. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Alcoholic 
beverages. 
"Alcoholic 
beverages" 
means 
beverages that are suitable for human consumption and contain .5% 
or more of alcohol by volume. 
~tQmobile. "AutoIDobile" means a self-propelled, 4-wheel 
motor vehicle designed primarily to carry passengers and not 
designed to run on tracks. 
3. Casual sale o~~l. "Casual sale" or "casual rental" 
means an isolated sale or rental that is not in the ordinary 
course of 
re~ated an~~~ive transactions of like character 
by the person making the sale or rental. 
4. 
Eating 
establishme~t. "Eating establishment" 
means 
an 
establishment more than 75~ of whose gross receipts from sales of 
food and drink are attr ibutable to sales of meals prepared by 
.t.l1at establishment. "Eating establishment" includes, but is not 
limited to, 
a 
cafe, 
lunch counter, 
private or social club, 
cocktail lounge, hoteL catering business, tavern, diner, snack 
~r, dining room, mobile eating place, doughnut shop, bagel shop, 
sandwich 
shop, 
pizza parlor, 
dairy 
bar 
or 
other 
place 
or 
establishment where meals are served, whether or not the serving 
of meals is the primary function or activity of the establishment. 
5. Grocexy staples. "Grocery staples" means food and drink 
products that are not ordinarily sold for immediate consumption. 
"Grocery staples" does not include food and drink sold in a 
heated state or alcoholic beverages. 
6. Living quarters. "Living Quarters" means sleeping rooms, 
sleeping or housekeeping accommodations and tent or trailer space. 
1. Meal. "Meal" means food and drink products, other than 
grocery staples, sold or served by an eating establishment. 
8. Nonprofit. 
"Nonprofit" means 
an organization that has 
been determined by the United States Internal Revenue Service to 
be exempt from taxation under Section 501(c) of the Code. 
9. Operator. "Operator" means any person who: 
A. Operates an eating establishment: 
B. Makes rentals of living Quarters or receives rents from 
rentals of living Quarters: or 
C. Makes rentals, other than casual rentals, of automobiles 
for a period of less than one year. 
"Operator" does not include a person who makes rentals of living 
Quarters or receives rents from rentals of living Quarters rented 
for a total of fewer than 15 days in the calendar year, but does 
include a person who owns and offers for rental more than one 
property in the State during the calendar year. 
10. Rural co ..... unity health center. "Rural community health 
.Q.enter" means a person that delivers, or provides facilities for 
the delivery of, comprehensive primary health care in a place or 
territory that is classified as rural according to the most 
recent federal decennial census. 
.l~Mg 
consideration, 
pricg---------"-,-Sale 
Pll~IDS!,..,a""n .... 
s'___"t~h.."e'____"t"'o'_"t.."a .... I'___"am"'_'_'_'o.uu"'n"_t. 
valued in money, 
whether received in money 
of 
or 
otherwise. 
A. "Sale price" includes ca~credit. property and services 
for 
which 
property 
or 
services 
are 
sold, 
without 
any 
deduction for: 
ill The seller's cost of pr~rty sold, materials used, 
labor or service cost. interest. losses, all costs of 
transportation to the seller, all taxes imposed on the 
seller or any other expense of the seller: 
12) Charges~b~~ller for any services necessary to 
complete the sale, other than delivery charges that are 
separately stated on the invoice, billing or similar 
document given to the purchaser: or 
(3) The value of exempt personal property transferred 
to the purchaser, 
when taxable and exempt personal 
Q£QPerty have 
been bundled together and sold as 
a 
single product or piece of merchandise. 
B. 
"Sale 
price" 
includes 
consideration received 
by 
the 
seller from 3rd parties if: 
(1) The seller actually receives consideration from a 
party other than the purchaser and the consideration is 
directly related to a price reduction or discount on 
the sale; 
(2) The seller has an obligation to pass the price 
reduction or discount through to the purchaser: 
(3) The amount of the consideration attributable to the 
sale is fixed and determinable by the seller at the 
time of the sale of the item to the purchaser: and 
(4) One of the following criteria is met: 
(a) The 
purchase_~esents a coupon, certificate 
or other documentation to the seller to claim a 
price 
reduction 
or 
discount 
when 
the 
coupon, 
certificate 
or 
documentation 
is 
authorized, 
.oistribut_ed or granted by a 3rd party with the 
understanding that the 3rd party will reimburse 
a~~ller to 
whom 
the 
coupon, 
certificate or 
documentation is presented: 
(b) The purchaser identifies himself or herself to 
the seller as a member of a group or organization 
entitled to 
a 
price 
reduction or 
discount. 
A 
~erred custom_er card that is available to any 
customer does not constitute membership in such a 
group; or 
(c) The price reduction or discount is identified 
as a 3rd-party price reduction or discount on the 
invoice received by the purchaser or on a coupon, 
~ertificate or other documentation presented by 
the purchaser. 
c. "Sale price" does not include: 
(1) 
Discounts that are allowed by a seller and taken 
by a purchaser on a 
sale, including cash discounts, 
~m discounts and coupons that are not reimbursed by a 
3rd party; 
(2) Interest, finance charges and carrying charges from 
credit extended on a sale, if the amount is separately 
stated on the invoice, bill of sale or similar document 
given to a purchaser; 
(3) Any taxes legally imposed directly on the purchaser 
that are separately stated on the invoice, bill of sale 
or similar document given to the purchaser; or 
(4) Delivery charges that are separately stated on the 
invoice, 
billing or 
similar 
document 
given 
to 
the 
purchaser. 
12. 
School. 
"School" 
means 
a 
public 
or 
incorporated 
~nprofit elementary, 
secondary 
or 
post-secondary 
education~ 
institution that has a regular faculty, curriculum and organized 
body of pupils or students in attendance throughout the usual 
school year and that keeps and furnishes to students and others 
records 
required 
and 
accepted 
for 
entrance 
to 
schools 
of 
secondary, collegiate or graduate rank. 
§4943. Meals and rentals tax 
1. Tax imp.Qsed. A tax is imposed at the rate of 7% on the 
value of all sales of meals and all rentals of living quarters 
and at the rate of 10% on the value of all rentals of automobiles 
for a period of less than one year. Value is measured by the sale 
~ice except as otherwise provided. The value of a meal or rental 
does not include any amount charged or collected in lieu of a 
gratuity or tip as a specifically stated service charge when that 
amount is to be disbursed by the operator to its employees as 
wages. The value of a meal does not include any amount paid with 
federal 
food 
stamps 
or 
Women, 
Infants 
and 
Children Special 
SYp~ental Food Program food instruments distributed by the 
Department of Health and Human Services. 
2. Computation. An operator shall add the tax imposed by 
this chapter to the sale price on all sales of meals, rentals of 
living quarters, and rentals of automobiles for a period of less 
than one year. The tax when so added is a debt of the purchaser 
.t.p the operator until it is paid, and is recoverable at law by 
the operator from the purchaser in the Same manner as the sale 
price. When the sale price involves a fraction of a dollar, the 
tax computation must be carried to the 3rd decimal place, then 
£QJlnded down to the next whole cent whenever the 3rd decimal 
lU-ace is 1, 2, 
or 4 and rounded up to the next whole cent 
whenever the 3rd decimal place is 5, 6, 7, 8 or 9. Breakage under 
this section is retained by the operator as compensation for the 
collection. 
3. Excessive collection prohibited. Any person who knowingly 
charges or collects as the tax due on the value of a sale of a 
meal, a rental of living quarters, or a rental of an automobile 
for a period of less than one year an amount in excess of that 
provided by this section commits a Class E crime. 
4. 
Tax 
a 
levy on 
consumer. 
The liability for, 
or 
the 
incidence of, the tax imposed by this chapter is declared to be a 
l~vy on the consumer. An operator shall add the amount of the tax 
to the sale price of meals and rentals subject to tax under this 
chapter and may state the amount of the tax separately from the 
sale price on price display signs, sales or delivery slips, bills 
and statements that advertise or indicate the sale price of those 
meals or rentals. 
§4944. Return and payment of tax 
1. Monthly return required. An operator shall file with the 
State Tax Assessor, on or before the 20th day of each month, a 
return made under the penalties of perjury on a form prescribed 
by the assessor. The return must report the total sale price of 
.all sales of meals, rentals of living quarters, and rentals of 
automobiles for a periOd of less than one year made during the 
~eceding calendar 
month 
and 
such other 
information 
as 
the 
assessor requires. The assessor may permit the filing of returns 
Q.t..he~~QDthly. The assessor, by rule, may waive reporting 
nontaxable sales and rentals. The assessor may for good cause 
extend for not more than 30 days the time for making returns 
reQuired under this chapter. 
Rules adopted pursuant to this 
subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
2. Payment of tiUt. The tax imposed by this chapter is 
du~ 
and payable at the time of the sale or rental. Upon terms and 
conditions that the assessor may prescribe, the assessor may 
permit a postponement of payment to a date not later than the 
ggte on which the sale or rental is reQuired to be reported. 
§4945. Registration required 
1. Persons required to register. The following persons shall 
register with the State Tax Assessor and collect and remit taxes 
in accordance with the provisions of this chapter: 
A. 
A person that makes sales, other than casual sales, of 
meals in this State; 
B. 
A person that rents living Quarters or receives rents 
from rentals of living Quarters in the regular course of 
business or as a casual rental; and 
C. A person that makes rentals of automobiles for a period 
of less than one year in this State, other than casual 
rentals. 
2. 
Registration 
certificate. 
Application 
forms 
for 
registration certificates must be prescribed and furnished free 
of 
charge 
by 
the 
assessor. 
The 
assessor 
shall 
issue 
a 
registration 
certificate 
to 
each 
applicant 
that 
properly 
completes and submits an application form. A separate application 
must be completed and a separate registration certificate issued 
for each place of business. 
A registration certificate issued 
pursuant to this section is nontransferable and is not a license 
within the meaning of that term in the Maine Administrative 
Procedure Act. If the operator maintains a place of business in 
this State, the registration certificate must be conspicuously 
displayed at that place of business. 
3. Failure to register. A person who is reQuired by this 
lLection to register with the assessor and who makes sales of 
meals, rentals of living Quarters, or rentals of automobiles for 
a 
period of less than one year without being so registered 
commits a Class E crime. Violation of this subsection is a strict 
liability crime as defined in Title 17 -A, section 34, subsection 
4-A. 
4. ReYQcation_Qf rgg~~on. The assessor may revoke the 
registration certificate of an operator who has failed to file 
with the assessor a return required under section 4944 within 15 
days after the due date, who has failed to file, within 15 days 
after receipt of notice, a bond or deposit required under section 
4946 or who has failed to pay any tax required by this chapter 
that is shown to be due on a return filed by the operator, is 
admitted to be due by the operator or has been determined to be 
due by the assessor and that determination has become final. The 
revocation is reviewable in accordance with section 151. 
The 
registration certificate is suspended from the date of notice of 
.tlle suspension until the delinquent tax is paid or a bond or 
deposit required under section 4946 is filed with the assessor or 
it is determined by an appropriate court that revocation is not 
warranted. 
~~~iD9. _liiil_l.elii .Q.LJ;e.nt.a_llL.Af..t..ttL.I~vocation. A pe r s on who s e 
.il!lUtration certificate has been revoked by the assessor who 
~ontinues to make sales of meals, rentals of liying quarters or 
rentals of automobiles for a period of less than one year commits 
a 
Class 
D crime. 
Violation of this subsection is 
a 
strict 
liability crime as defined in Title l7-A, section 34, subsection 
4-A. 
§4946. Bonds 
If 
the 
State 
Tax 
Assessor 
determines 
it necessary 
or 
advisable, either as a condition for issuance or subsequent to 
the issuance of 
a 
registration certificate pursuant 
to this 
chapter, 
the 
assessor 
may 
require 
from 
an operator 
a 
bond, 
written by a surety company qualified to do business in this 
State, 
in 
an 
amount 
and 
upon 
conditions 
determined 
by 
the 
assessor. 
In lieu of 
a 
bond, 
the 
assessor 
may 
accept, 
for 
delivery to the custody of the Treasurer of State, a deposit of 
money or securities in an amount and of a kind approved by the 
g§sessor. The Treasurer of State shall accept the deposit and 
keep it safely, subject to the instructions of the assessor. 
§4947. Advertising of payment by operator 
It is unlawful for any operator to advertise or hold out or 
state to the public or to any consumer, directly or indirectly, 
that the tax imposed by this chapter or any part of it will be 
~ed or absorbed by the operator, that it will not be added to 
or included in the price of a taxable meal or rental or, if added 
or included, that it or any part of it will be refunded. Any 
person who violates any part of this section is guilty of a Class 
E crime. 
§4948. Overpayments; refunds 
If 
the 
State 
Tax 
Assessor 
determines, 
upon 
written 
_application by a taxpayer or during the course of an audit. that 
any tax under this chapter has been paid more than once or has 
been 
erroneously 
or 
illegally 
computed, 
the 
assessor 
shall 
~ertify to the State Controller the amount paid in excess of that 
~ally due. That amo~must be credited by the assessor on any 
taxes then due from the taxpayer and the balance refunded to the 
taxpayer or its success_or in interest. but no such credit or 
refund may be 
allow~nless within 3 year-s from the date of 
QY~PJU':ment Etither a written petitiQ1), stating the grounds upon 
which the refund or credit is claimed is filed with the assessor 
or the overpayment is discovered on audit. Interest at the rate 
determined pursuant to section 186 must be paid on any balance 
refunded pursuant to this chapter 
from 
the date the return 
listing the overpayment was filed or the date the payment was 
made, whichever is later, except that in cases of excessive or 
erroneous collections interest must be paid in accordance with 
section 4949, 
subsection 3. 
At the election of the assessor, 
unless the taxpayer specifically requests 
a 
cash refund, 
the 
refund may be credited to the taxpayer's meals and rentals tax 
account. but in the case of a credit no further interest may 
accrue from the date of that election. The taxpayer may not apply 
for 
a 
refund of any 
amount assessed when administrative and 
judicial review under section 151 has been completed. 
A taxpayer dis_satisfied with the decision of the assessor 
upon a written request for refund filed under this section may 
.re~st recon~ideration and ap'p-e.Ql 
from the reconsideration to 
the 
Superior 
Court 
in 
the 
same 
manner 
and 
under 
the 
same 
conditions as in the 
c~se of assessments made under chapter 7. 
The decision of the assessor upon a written request for refund 
becomes final as to law and fact in the same manner and under the 
Same conditions as in the case of assessments made under chapter 
h 
§4949. Excessive and erroneous collections 
1. Tax liability. Whenever the tax collected by an operator 
for any period exceeds that provided by law, whether the excess 
is attributable to the collection of tax on exempt or nontaxable 
transactions 
or 
to 
erroneous 
computation, 
the 
total 
amount 
collected, excluding only that portion of the excess that has 
been returned or credited to the person or persons from whom it 
was collected, constitutes a tax liability of the operator that 
must be reported and paid at the time and in the manner provided 
by section 4944. 
~~~:tjabiJity sJJbj~.cJ: to asse§sment, 
collection and 
~pforcement. The 
tax liability specified in subsection 1 
is 
~l,lbject to 
as~esJi!JI-.e.nL colle~ti9ll and enforcement by the State 
Tax Assessor as provided in chapter 7. 
3. Refund or credit. The assessor shall refund or credit an 
am~nt that has been paid by or collected from an operator 
p-I,lrsua~o this section only upon submission of proof to the 
satisfaction of the assessor that the amount has been returned or 
credited to the person or persons from whom it was originally 
collected. The assessor shall pay interest in such a case only 
upon submission of proof to the satisfaction of the assessor that 
interest was included in the repayment by the operator to that 
person or persons. 
§4950. Continuous residence: refund and credit 
Rental 
of 
liying 
quarters 
to 
any 
person 
who 
resides 
continuously for 28 days or more at anyone establishment is not 
subject to the tax imposed by this chapter if the person does not 
maintain a primary res~ence at some other location or the person 
is 
residing 
away 
from 
that 
person's 
primary 
residence 
in 
~nection with employment or education. Any tax paid pursuant to 
this 
chapter 
by 
such 
a 
person 
to 
the 
operator 
of 
the 
establishment durin~e initial 28-day period must be refunded 
to the person by the operator. If the tax has been reported and 
paid to the State Tax Assessor by the operator, it may be taken 
as a credit by the operator on the return filed by the operator 
under this chapter covering the month in which the refund was 
made to the person. 
§495l. Exempt sales and rentals 
The following sales and rentals are not subject to the tax 
imposed by this chapter: 
1. 
Exemptions 
by constitutional provisions. 
Any 
sale or 
rental that this State is prohibited from taxing under the United 
States Constitution or laws of the United States or under the 
Constitution of Maine; 
2. Casual sale or rental. Casual sales of meals and casual 
rentals of automobiles for a period of less than one year; 
3. 
SchQ2ls~ ___ Sales 
of 
meals 
served 
by 
schools, 
school 
distr icts, student organizations and parent-teacher associations 
to the students or teachers of a school, and rental charged for 
living or sleeping quarters or housekeeping accommodations to any 
student necessitated by attendance at a school; 
4. Certain institutions. Sales of meals served to patients 
of hospitals licensed by the State for the care of human beings 
and 
other 
institutions 
licensed 
by 
the 
State 
for 
the 
~italization or nursing care of human beings, or institutions, 
~gencies, hospitals, boarding homes and boarding houses licensed 
ll-th~partment of Health and Human Services under Title 22, 
Subtitle 6 and Title 22, section 1781; 
5. Area agencies on aging. Sales of meals sold by hospitals, 
~hools, 
long-term 
care 
facilities, 
food 
contractors 
and 
restaurants to incorporated nonprofit area agencies on aging for 
the purpose of providing meals to the elderly; 
6. Congr..§9ate housing facilities. Sales of meals sold to 
.r~!LiSl.smts of incorporated non...p.fofit church-affiliated congregate 
housing facilities for the elderly in which at least 75'\, of the 
units are available for leasing to eligible low-income residents; 
7. ColJege~~~~~meals served by a college to employees 
of the college when the meals are purchased with debit cards 
issued by the college: 
~amps. Rental charged for living or sleeping quarters or 
hQusekeeping 
accommodations 
at 
camps 
that 
are 
entitled 
to 
exemption from property tax under section 652, subsection 1; 
9. 
Hospitals 
and nursing facilities. 
Rental 
charged for 
living or sleeping quarters in an institution licensed by the 
State for the hospitalization or nursing care of human beings; 
10. 
Schools and school-sponsored organizations. 
Sales of 
meals sold by elementary and secondary schools and by student 
organizations sponsored by those schools, including booster clubs 
and 
student or parent-teacher organizations, 
as 
long as 
the 
profits from the sales are used to benefit those schools or 
student organizations or are used for a charitable purpose; 
11. Cert~~~~s and lodging. The value of meals or lodging 
provided to employees at their place of employment, 
when the 
value of those meals or that lodging is allowed as a credit 
toward the wages of those employees; and 
12. 
Auxiliary organization of 
~rican Legion. 
Sales of 
meals sold by a nonprofit auxiliary organization of the American 
Legion in connection with a fund-raising event sponsored by the 
auxiliary 
organization if 
the 
meals 
and 
related 
items 
and 
services are provided in a room that is separate from the lounge 
facilities, 
if any, 
of the 
American Legion 
and patrons 
are 
prohibited 
from 
taking 
alcoholic 
beverages 
from 
the 
lounge 
facilities to the separate room where the meals are provided. 
§4952. Persons exempt from tax 
1. Exempt entities. Sales or rentals made directly to the 
following persons are not subject to tax under this chapter: 
A. The State or any political subdivision of the State, the 
Federal 
Government 
or 
any 
unincorporated 
agency 
or 
instrumentgljty of either of them or any incorporated agency 
or instrumentality of them wholly owned by them: 
B. Incorporated hospitals; 
C. 
Incorporated nonprofit nursing homes 
licensed by 
the 
Department of Health and Human Services; 
D. Incorporated nonprofit assisted housing programs for the 
elderly licensed by 
the 
Department of Health 
and 
Human 
Services; 
E. 
Incorporated 
nonprofit 
residential 
care 
facilities 
licensed by the Department of Health and Human Services; 
f~ncorpJL~Qted nop~~ofi~p~e health agencies certified 
under the United States Social Security Act of 1965, Title 
XVIII, as amended; 
G. 
Incorporated nonprofit rural 
community health centers 
~ggged in, or providing facilities for, 
the delivery of 
comprehensive primary health care; 
H. Incorporated nonprofit dental health centers; 
I. Institutions incorporated as nonprofit corporations for 
the sole purpose of conducting medical research or for the 
purpose of establishing and maintaining laborQtories 
for 
scientific study and investigation in the field of biology 
or 
ecology or 
operQting educational television or 
radio 
stations; 
J. Schools; 
K. Incorporated nonprofit organizations or their affiliates 
whose purpose is to provide literacy assistance or free 
clinical assistance to children with dyslexia; 
L. 
Reg~lQrly organized 
churches 
or 
houses 
of 
religious 
worship; 
M. 
Incorporated private nonprofit residential child care 
institutions licensed by the Department of Health and Human 
Services as child care institutions; 
N. Incorporated nonprofit fire departments and incorporated 
nonprofit ambulance services: 
O. Mental health facilities, mental retardation facilities 
or substance abuse facilities that are contractors under or 
receiving support under the Federal Community Mental Health 
Centers AcL..2L itLS..J.lCC.Et~Ji9rS, or receiving support from 
thj~ 
Department of Health and Human Services pursuant to Title 5, 
section 20005 or Title 34-B, section 3604, 5433 or 6204: 
P. Regional planning commissions and councils of government 
established in accordance with Title 30-A: 
O. 
Incorporated 
nonprofit 
memorial 
foundations 
that 
primarily provide cultural programs 
free 
to 
the public, 
historical societies and museums: 
R. 
Licensed, 
incorporated nonprofit 
nursery 
schools 
and 
day-care centers; 
s. 
Any 
church-affiliated 
nonprofit 
organization 
that 
operates, 
under 
a 
charter granted by the Legislature, 
a 
residential home for adults: 
T. Incorporated nonprofit organizations providing tempor~ 
residential accommodations to pediatric patients suffering 
from critical illness or disease such as cancer or who a,re 
accident victims, to adult patients with cancer or to the 
families of the patients: 
JJ. 
Incorporated nOIJ.prof i t organizations providing 
residential accommodations or food, 
or both, 
to 
patients or to the families of hospital patients; 
temporary 
hospital 
V. 
Incorporated nonprofi t ~nizations that provide free 
tempora,ry 
emergency 
shelter 
or 
food 
for 
underprivileged 
individuals in this State: 
W. 
Incorporated nonprofit child abuse and neglect councils 
as defined in Title 22, section 3872, subsection I-A: 
X. 
Statewide organizations that advocate for children and 
that are members of the Medicaid Advisory Committee; 
y:. 
Community action agencies designated in accordance with 
Title 22, section 5324; 
Z. Any nonprofit fre~blic lending library that is funded 
~rt Qr whol~y 
__ 
tb~ State or any political subdivision 
of the State or the Federal Government; 
AA. 
Incorporated 
nonprofit 
veterans I 
memorial 
cemetery 
associations; 
BB. 
Incorporated 
nonprofit 
volunteer 
search 
and 
rescue 
organizations: 
CC. 
Incorporated 
nonprofit 
hospice 
organizations 
that 
provide a program or care for the physical and emotional 
needs of terminally ill patients; 
DD. 
Non,erofit youth organizations whose primary purpose is 
to provide athletic instruction in a nonresidential setting: 
EE. 
Councils 
and 
local 
units 
of 
incorporated nonprofit 
national scouting organizations; 
FF. 
Incorporated nonprofit educational organizations that 
are rece1v1ng, or have received, funding from the Department 
of 
Education 
and 
that 
provide 
educational 
programs 
specifically designed for teaching young people how to make 
decisions 
about 
drugs, 
alcohol 
and 
interpersonal 
relationships at a residential camp setting; 
GG. 
Local branches of incorporated international nonprofit 
charitable organizations that provide, on a loan basis and 
free of charge, medical supplies and equipment to persons; 
HH. Incorporated nonprofit organizations whose sole purpose 
is to fulfill the wishes of children with life-threatening 
diseases when their families or guardians are unable to 
otherwise financially fulfill those wishes; 
II. Incorporated nonprofit organizations engaged primarily 
in providing support systems for single-parent families for 
the 
development 
of 
psychological 
and 
economic 
self-sufficiency; 
~.J. Local branches 
whose 
purpose 
is 
low-income people; 
of 
incou~ra_t_ed nonprofit 
to 
construct 
low-cost 
organization_s 
housing 
for 
KK. Incorporated nonprof i t organizations whose sole purpose 
is to create, maintain and update a 
registry of Vietnam 
veterans; 
LL. 
Incorporated 
nonprofit 
organizations 
whose 
primary 
purposes 
are 
to 
promote public understanding of 
heari~ 
impairment and to assist hearing-impaired persons through 
the dissemination of information about hearill9-impairment~ 
th~L~e r 81 
pu_b li c 
an.~L~J err a~t...~g.n9._~Q_Q.K.gj,Aa tj,.-on ___ QJ: 
community resources available to hearing-impaired persons; 
MM. Credit unions that are organized under the laws of this 
State. This paragraph remains in effect only for the time 
that federally chartered credit unions are, 
by reason of 
federal law, exempt from payment of state sales tax; 
NN. 
Nonprofit organizations whose 
primary purpose is to 
develop housing for low-income people; 
00. 
.tiQD-PLQi"~1:.qanb..a.tions whose 
primary purpose is to 
obtain, medically evaluate and distribute eyes for use in 
corneal transplantation, research and education; and 
PP. Centers for innovation as described in Title 5, section 
13141. 
2. 
Exem~ctivi.ti~s. The 
exemptions 
provided 
by 
this 
section to a person based upon its charitable. nonprofit or other 
public purposes apply only to purchases intended to be used by 
the person primarily in the activity identified by the particular 
exemption. 
Exemption 
certificates 
issued 
by 
the 
State 
Tax 
Assessor 
pursuant 
to 
this 
section must 
identify the 
exempt 
activity and must state that the certificate may be used by the 
holder only for purchases intended to be used by the holder 
primarily in the exempt activity. When an otherwise gualifying 
Q_erson is engaged in both exempt and nonexempt activities, an 
exemQtion certificate may be issued to the Qerson only if the 
person has established to the satisfaction of the assessor that 
the aQplicant has adeguate accounting controls to limit the use 
of the certificate to exempt purchases. 
§4953. Credit for worthless accounts 
The tax paid on sales represented by accounts charged off as 
worthless may be credited against the tax due on a subseguent 
.r~turn filed within 3 years of the charge-off. For purposes of 
this section, a worthless account is a bad debt as defined in 
Section 166 of the Code, adjusted to exclude finance charges or 
interest, taxes charged on the sale price and expenses incurred 
in attempting to collect the debt. A credit may be taken on the 
return filed for the period during which the account is written 
off as uncollectible in the claimant's books and records and is 
eligible to be deducted for federal income tax purposes. If a 
deduction is taken for a bad debt and the debt is subseguently 
collected in whole or in part, the tax on the amount so collected 
must be Qaid and reported on the return filed for the period in 
which the collection is made. 
SUMMARY 
This bill makes changes to Maine's sales and use tax law in 
order to bring it into conformity with the Streamlined Sales Tax 
Agreement, 
which is 
a 
product of 
the Streamlined Sales 
Tax 
Project, which is an effort of state governments, with input from 
local 
governments 
and 
the 
private 
sector, 
to 
simplify 
and 
modernize sales and use tax collection and administration.