An Act To Preserve Manufacturing in Maine
Maine Legislature, Session 123, LD 1610
Committee: Taxation
Sponsors: SIMPSON, SMITH
Amends: 36 MRSA §691

Legislative Document 
No. 1610 
H.P.I132 
House of Representatives, March 21, 2007 
An Act To Preserve Manufacturing in Maine 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative SIMPSON of Auburn. 
Cosponsored by Representative: SMITH of Monmouth. 
Printed on recycled raper 
'7J1~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §691, sub-§l, ~A, as enacted by PL 2005, c. 623, § 1, IS 
amended to read: 
A. 
"Eligible business equipment" means qualified property that, in the absence of 
this subchapter, would first be subject to assessment under this Part on or after April 
1, 2008 and qualified property used in manufacturing that was first subject to 
assessment under this Part on or before April 1, 1995. "Eligible business equipment" 
includes, without limitation, repair parts, replacement parts, replacement equipment, 
additions, accessions and accessories to other qualified business property that first 
became subject to assessment under this Part before April 1, 2008 if the part, 
addition, equipment, accession or accessory would, in the absence of this subchapter, 
first be subject to assessment under this Part on or after April 1, 2008. "Eligible 
business equipment" also includes inventory parts. 
"Eligible business equipment" does not include: 
(1) Office furniture, including, without limitation, tables, chairs, desks, 
bookcases, filing cabinets and modular office partitions; 
(2) Lamps and lighting fixtures used primarily for the purpose of providing 
general purpose office or worker lighting; 
(3) Property owned or used by an excluded person; 
(4) Telecommunications personal property subject to the tax imposed by section 
457; 
(5) 
Gambling machines or devices, including any device, machine, 
paraphernalia or equipment that is used or usable in the playing phases of any 
gambling activity as that term is defined in Title 8, section 1001, subsection 15, 
whether that activity consists of gambling between persons or gambling by a 
person involving the playing of a machine. "Gambling machines or devices" 
includes, without limitation: 
(a) Associated equipment as defined in Title 8, section 1001, subsection 2; 
(b) Computer equipment used directly and primarily in the operation of a 
slot machine as defined in Title 8, section 1001, subsection 39; 
(c) 
An electronic video machine as defined in Title 17, section 330, 
subsection I-A; 
(d) Equipment used in the playing phases of lottery schemes; and 
(e) Repair and replacement parts of a gambling machine or device; or 
(6) Property located at a retail sales facility and used primarily in a retail sales 
activity unless the property is owned by a business that operates a retail sales 
facility in the State exceeding 100,000 square feet of interior customer selling 
space that is used primarily for retail sales and whose Maine-based operations 
derive less than 30% of their total annual revenue on a calendar year basis from 
Page I - 123LRI074(Ol)-1 
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sales that are made at a retail sales facility located in the State. For purposes of 
this subparagraph, the following terms have the following meanings: 
(a) "Primarily" means more than 50% of the time; 
(b) "Retail sales activity" means an activity associated with the selection 
and purchase of goods or services or the rental of tangible personal property. 
"Retail sales activity" does not include production as defined in section 1752, 
subsection 9-B; and 
(c) "Retail sales facility" means a structure used to serve customers who are 
physically present at the facility for the purpose of selecting and purchasing 
goods or services at retail or for renting tangible personal property. "Retail 
II 
sales facility" does not include a separate structure that is used as a 
warehouse or call center facility. 
Sec. 2. Application. This Act applies to property tax years beginning on or after 
April 1,2008. 
SUMMARY 
This bill extends the property tax exemption for eligible business equipment to 
qualified property used in manufacturing that was first subject to property tax in Maine 
before the start of the Business Equipment Tax Reimbursement program.