An Act To Provide Tax Relief to Maine's Forest Products Industry
Maine Legislature, Session 123, LD 2225
Committee: Taxation
Sponsors: SCHNEIDER, CUMMINGS, NASS, PERRY, SMITH, CLARK, KNIGHT, PIOTTI, THOMAS, WATSON
Amends: 36 MRSA §1752, 36 MRSA §2019

Legislative Document 
No. 2225 
S.P.857 
February 26,2008 
An Act To Provide Tax Relief to Maine's Forest Products Industry 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
JOY 1. O'BRIEN 
Secretary of the Senate 
Presented by Senator SCHNEIDER of Penobscot. (GOVERNOR'S BILL) 
Cosponsored by Speaker CUMMINGS of Portland and Senators: NASS of York, PERRY of 
Penobscot, SMITH of Piscataquis, Representatives: CLARK of Millinocket, KNIGHT of 
Livermore Falls, PIOTTI of Unity, THOMAS of Ripley, WATSON of Bath. 
Printed on recycled paper 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, Maine is dependent on its natural resources-based economy; and 
Whereas, the price of diesel fuel in Maine is at an all-time high and is devastating 
the Maine economy, especially with regard to loggers and truckers carrying forest 
products; and 
Whereas, Governor John E. Baldacci has already issued a Declaration of Civil 
Emergency regarding the high price of diesel fuel and its impact on the State's forest 
products industry; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §1752, sub-§2-D is enacted to read: 
2-D. Forest land. "Forest land" means land used primarily for the growth of trees to 
be harvested for commercial use. 
Sec. 2. 36 MRSA §1752, sub-§2-E is enacted to read: 
2-E. Forest products. "Forest products" means logs, pulpwood, bolt wood, wood 
chips, stud wood, poles, pilings, biomass or fuel wood or other products commonly 
known as forest products, but does not include Christmas trees, maple syrup, nursery 
products used for ornamental purposes, wreaths, bough material or cones or other seed 
crops. 
Sec. 3. 36 MRSA §2019 is enacted to read: 
§2019. Refund of sales tax on purchases of parts and supplies 
1. 
Definition. For purposes of this section, "harvest-related transport of forest 
products" means the transportation of forest products from the forest land where they 
were harvested to their initial destination involving production or use. 
2. 
Refund authorized. The State Tax Assessor shall refund to a person that 
purchases parts and supplies for use in the repair and maintenance of motor vehicles and 
trailers that are used directly and primarily in the harvest-related transport of forest 
products the amount of sales tax paid upon the person's presenting evidence that the 
purchase is eligible for a refund under this section. Evidence required by the assessor may 
include a copy or copies of that portion of the purchaser's most recent filing under the 
Code indicating that the purchaser is engaged in the harvest-related transport of forest 
products. An application for a refund under this subsection must be filed with the assessor 
within 36 months of the date of purchase. 
3. Purchases made free of tax with certificate. Sales tax need not be paid on the 
purchase of parts and supplies for use in the repair and maintenance of motor vehicles 
and trailers that are used directly and primarily in the harvest-related transport of forest 
products if the purchaser has obtained a certificate from the assessor stating that the 
purchaser is engaged in the harvest-related transport of forest products and authorizing 
the purchaser to purchase parts and supplies for use in the repair and maintenance of 
motor vehicles and trailers without paying Maine sales tax. The seller shall obtain a copy 
of the certificate together with an affidavit as prescribed by the assessor, to be maintained 
in the seller's records, attesting to the qualification of purchases for exemption pursuant to 
this section. In order for the purchase of parts and supplies to qualify for this exemption, 
the motor vehicle or trailer to be repaired or maintained must be used directly and 
primarily in the harvest-related transport offorest products. 
4. Repeal. This section is repealed October 1, 2008. 
Sec. 4. Transfer funds. Notwithstanding any other provision of law, the Governor 
shall transfer by financial order $175,000 by March 1, 2008 and $125,000 by July 1, 2008 
from the emergency portion of the State Contingent Account to the unappropriated 
surplus of the General Fund. 
Sec. 5. 
Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Allocates funds for computer programming and mailing and printing costs. 
GENERAL FUND 
2007-08 
2008-09 
All Other 
$7,000 
$0 
GENERAL FUND TOTAL 
$7,000 
$0 
Emergency clause. 
In view of the emergency cited ill the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill provides for a sales tax exemption for repair parts and maintenance supplies 
used for motor vehicles and trailers primarily engaged in the transport of harvested forest 
products. The exemption is repealed on October 1, 2008. The bill also authorizes the 
Governor to transfer funds by financial order from the emergency portion of the State 
Contingent Account to the unappropriated surplus of the General Fund.