An Act To
Maine Legislature, Session 123, LD 1005
Committee Amendment CA_A_S233 (Senate)

COMMITTEE AMENDMENT 'A " to S.P. 322, L.D. 1005, Bill, "An Act To 
Amend the Tax Laws Concerning Certain Motor Vehicle Dealership Transactions" 
II 
Amend the bill by inserting after section I the following: 
'Sec. 2. 36 MRS A §1752, sub-§17-B, as enacted by PL 2003, c. 673, Pt. V, § 19 
and affected by §29, is amended to read: 
17-B. Taxable service. "Taxable service" means the rental of living quarters in a 
hotel, rooming house, tourist or trailer camp; the transmission and distribution of 
electricity; the rental or lease of an automobile; the sale of an extended service contract 
on an automobile that entitles the purchaser to specific benefits in the service of the 
automobile for a specific duration; and the sale of prepaid call ing service. ' 
Amend the bill by striking out all of section 3. 
Amend the bill in section 4 by striking out all of the last blocked paragraph (page 2, 
lines 27 to 29 in L.D.) and inserting the following: 
'If the vehicle is not used exclusively in the qualifying resident business's out-of-state 
business activities or is registered for use in the State within 12 months of the date of 
purchase, the person seeking registration is liable for use tax on the basis of the original 
purchase price.' 
Amend the bill by adding before the summary the following: 
'Sec. 6. Retroactivity; application. This Act applies to amounts charged or 
collected on loaner vehicles as defined in the Maine Revised Statutes, Title 36 or short-
term rentals provided to a motor vehicle dealer's service customers pursuant to a 
manufacturer's or dealer's warranty on or after November 1, 2002, except that a person 
who has paid sales or use tax on those loaner vehicles or short-term rentals on or after 
November I, 2002 but prior to the effective date of this Act is not entitled to a refund of 
the sales or use tax paid unless that person filed an administrative or judicial appeal 
COMMITTEE AMENDMENT 
~fI" 
I 
IS 
COMMITTEE AMENDMENT "A" to S.P. 322, L.D. 1005 
pursuant to Title 36, section lSI and that administrative or judicial remedy has not been 
exhausted. ' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment: 
I. Revises the sales tax methodology on extended service contracts on automobiles; 
rather than through the current formula, which subjects parts and a percentage of the 
deductible on all such contracts to sales tax at the time service is provided, the tax will be 
assessed at the time of the sale. This will also facilitate recordkeeping; 
2. 
Removes the change made by the bill that removed the distinction between 
domestic and foreign limited liability companies in the definition of "nonresident" for 
purposes ofthe exemption; and 
3. Adds a retroactive application section exempting amounts charged or collected on 
loaner vehicles after November I, 2002 unless the tax was paid and the person paying did 
not appeal that payment. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/29107 frac:.. 
LD 1005 
LR 1789(02) 
An Act To Amend the Tax Laws Concerning Certain Motor Vehicle Dealership Transactions 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
$326,101 
($329,667) 
Projections 
2009-10 
($346,151 ) 
Other Special Revenue Funds 
($326,101) 
($17,887) 
$329,667 
$18,083 
$346,151 
$18,987 
Fiscal Detail and Notes 
Projections 
2010-11 
($365,535) 
$365,535 
$20,050 
This bill results in a net General Fund loss 0[$326,101 in fiscal year 2007-08 and a net gain 0[$329,667 in fiscal year 
2008-09. 
LRl789(02) - Fiscal Note - Page 1 of 1