An Act To Improve the Competitiveness of Maine's Boat Building Industry
Maine Legislature, Session 123, LD 1214
Committee: Taxation
Sponsors: DAMON, MacDONALD, EDMONDS, PERCY, SCRA TZ
Amends: 36 MRSA §1760

MAINE STATE LEGISLATURE 
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123rdMAINE LEGISLATURE 
Legislative Document 
No. 1214 
S.P.402 
March 7, 2007 
An Act To Improve the Competitiveness of Maine's Boat Building 
Industry 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator DAMON of Hancock. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative MacDONALD of Boothbay and S"enators: DOW of Lincoln, 
President EDMONDS of Cumberland, Representatives: PERCY of Phippsburg, SCRA TZ of 
Blue Hill. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §1760, sub-§25, as amended by PL 2005, c. 218, §22, is 
further amended to read: 
25. Watercraft sold to nonresidents. Sales of watercraft to a nonresident, ';.rhes the 
wateFCfftft is iHteHded te be sailed er tnmsperted oo-tside the State iffiffiediatery. \\peH 
delh,rery by the seller; sales to a sOHresident, UDder contracts for the cosstrnctios of a 
wateFCfftft iHtended to be sailed or transported outside the State immediatel~' I:IfloS 
delivery b~' the seller, ; sales to a nonresident of materials to be incorporated in the 
watercraft; and sales to a nonresident for the repair, alteration, refitting, reconstruction, 
overhaul or restoration of a watercraft intended to be sailed or transported ol:ltside the 
State immediatel~' I:Ipon delivery by the seller, of materials to be incorpofftted is the 
wateFCfftft. 
Unless the watercfftft is flresent iH the State, for a flHFflose other than 
temporary storage, for more than 30 days dliriDg the 12 mOHth fleried following its date 
of fH:H'chase or is registered in Maine without also being registered is as ether state or 
docuffiested with a location in this State, "AthiA 12 months of the date of fll:lFchase, the 
fllirchaser is el(emflt from the lise tax. Notwithstanding section 1752-A, for purposes of 
this subsection, the term "nonresident" may include an individual, an association, a 
society, a club, a general partnership, a limited partnership, a domestic or foreign limited 
liability company, a trust, an estate, a domestic or foreign corporation and any other legal 
entity. 
Sec. 2. Effective date. This Act takes effect October 1, 2007. 
SUMMARY 
Current law provides an exemption from the sales tax to a nonresident who purchases 
a watercraft or materials for the repair or alteration of a watercraft only if the watercraft is 
transported outside of the State immediately after the sale. If the watercraft is present in 
the State, other than for temporary storage, for more than 30 days during the 12 months 
following the sale, then the purchaser is subject to use tax. 
This bill removes the time restrictions, thus providing a sales and use tax exemption 
to watercraft or materials sold to a nonresident of Maine, regardless of the amount of time 
the watercraft remains in the State.