An Act To Repeal the Maine Use Tax
Maine Legislature, Session 123, LD 0920
Committee: Taxation
Sponsors: CEBRA, SNOWE-MELLO, ANNIS, AYOTTE, JOY, LANSLEY, LEWIN, ROBINSON, TARDY
Amends: 23 MRSA §7103-A, 36 MRSA §175, 36 MRSA §290, 36 MRSA §321, 36 MRSA §7122

Legislative Document 
No. 920 
H.P.695 
House of Representatives, March 1,2007 
An Act To Repeal the Maine Use Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative CEBRA of Naples. 
1J1~/J7·mdC~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Senator SNOWE-MELLO of Androscoggin and 
Representatives: ANNIS of Dover-Foxcroft, AYOTTE of Caswell, JOY of Crystal, LANSLEY 
of Sabattus, LEWIN of Eliot, ROBINSON of Raymond, TARDY of Newport, V A UOHAN of 
Durham. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 23 MRSA §7103-A, as enacted by PL 2005, c. 457, Pt. GGG, §5, is 
amended to read: 
§7103-A. 
Deposit into State Transit, Aviation and Rail Transportation Fund 
account 
Effective October 1, 2005, the Treasurer of State shall receive all revenue derived 
from the tax levied pursuant to Title 36, chapter 361 and taxes paid under Title 36, 
seation 1865 and shall deposit all revenue in a separate account to be known as the State 
Transit, Aviation and Rail Transportation Fund account. 
Sec. 2. 36 MRSA §175S, sub-§2, as enacted by PL 1999, c. 708, §24, is amended 
to read: 
2. Generally; tax imposed on rental payments. This section governs the taxation 
of tangible personal property that is purchased for resale in this State, other than at casual 
sale, and upon which no sales tax has been paid pursuant to chapters 211 to 225 when the 
property is rented or leased after purchase on an interim basis by the purchaser to another 
person prior to being sold. In tiel:! of the use tax otherwise imposed by section 1861, a A 
tax is imposed at the same rate as that provided in the case of sales taxes by section 1811 
upon all rentals received by the purchaser for the use of that property. 
Sec. 3. 36 MRSA c. 215, as amended, is repealed. 
Sec. 4. 36 MRSA §290S, 3rd " as repealed and replaced by PL 2005, c. 683, Pt. 
B, §31, is repealed. 
Sec. 5. 36 MRSA §321S, 3rd " as repealed and replaced by PL 2003, c. 390, 
§ 17, is repealed. 
Sec. 6. 36 MRSA §321S-A, as enacted by PL 2003, c. 498, § 10, is amended to 
read: 
§3218-A. Refunds of tax for fuel used by railroads 
- 27 
Beginning July 1,2004, the assessor shall monitor the amount of refunds paid under 
section 3218 for fuel consumed by vehicles operating on rails and monitor the amount of 
use tax paid on fuel consumed by yehicles operating on rails under chapter 215. 
Sec. 7. 36 MRSA §7122, sub-§7, as enacted by PL 2001, c. 496, §1, is repealed. 
Sec. S. 
Revisor's review; cross-references. The Revisor of Statutes shall 
review the Maine Revised Statutes and include in the errors and inconsistencies bill 
submitted to the Second Regular Session of the 123rd Legislature pursuant to Title 1, 
section 94 any sections necessary to correct and update any cross-references in the 
statutes to provisions of law repealed in this Act. 
Page I -123LR1I77(OI)-1 
Sec. 9. Effective date. This Act takes effect October 1, 2007. 
SUMMARY 
This bill repeals the use tax, which imposes a tax at the same rate as the sales tax on 
the storage, use or other consumption in this State of tangible personal property or a 
service if the sale of that property or service would be subject to tax under the sales tax 
laws.