An Act To Remove the Sales Tax on Watercraft
Maine Legislature, Session 124, LD 0659
Committee Amendment CA_A-SA_A_S537 (Senate)
Amends: 36 MRSA §1760

SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "A" to H.P. 473, 
L.D~ 659, Bill, "An Act To Remove the Sales Tax on Watercraft" 
Amend the amendment by striking out the substitute title and replacing it with the 
following: 
'An Act To Reduce the Sales Tax onCertaill Watercraft' 
Amend the amendment by striking out all of section 1 and insertingthe following: 
'Sec. 1. 36 MRSA §1760, sub-§25, as amended by PL 2009, c. 361, § 18, IS 
repealed and the following enacted in its place: 
25. Watercraft purchased by nonresidents. Sales to or use by a person that is not 
a resident of this State of watercraft or materials used in watercraft as specified in this 
subsection. 
A. The following are exempt when the sale is made in this State to a person that is 
. 
not a resident ofthis State and the watercraft is sailed or transported outside the State 
within 30 days of delivery by the seller: 
(1) A watercraft; 
(2) Sales, under contract for the construction of a watercraft, of materials to be 
incorporated in that watercraft; and 
(3) 
Sales of materials to be incorporated in the watercraft for the repair, 
alteration, refitting, reconstruction, overhaul or restoration of that watercraft. 
B. Notwithstanding 'subsection 45, paragraph A-I, the sale of a watercraft is exempt 
if the watercraft is purchased and used by the present owner outside the State if the 
watercraft is registered outside the State by an owner who is an individual and the 
watercraft is present in the State not more than 30 days for a purpose other than 
temporalY storage during the 12 months following its purchase. 
C. If, for a purpose other than temporary storage, a watercraft is present in the State 
for more than 30 days during the 12-month period following its date of purchase, the 
exemption is 60% of the sale price of the watercraft or materials for the construction, 
SENATE AMENDMENT 
~~~. 
'i::" 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "An to H.P. 473, L.D. 659 
repair, alteration, refitting, reconstruction, overhaul or restoration of the watercraft, as 
specified in paragraph A. 
Sec. 2. Effective date. This Act takes effect August 1, 2010.' 
SUMMARY 
This amendment replaces changes made in the committee amendment to the sales tax 
exemption for certain watercraft purchased by nonresidents and provides a 60% reduction 
in the sales and use tax. rate for nonresidents who keep their watercraft in the State 
beyond the time period specified. in the Maine Revised Statutes, Title 36, section 1760, 
subsection 25 and subsection 45, paragraph A-I. 
FISCAL NOTE REQUIRED 
SPONSORED BY: f 
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COUNTY: Cumberland 
SENATE AMENDMENT 
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Approved: 04/07/10 
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LD659 
LR 392(07) 
An Act To Remove the Sales Tax on Watercraft 
Fiscal Note for Senate Amendment "A" to Committee Amendment "A" 
Sponsor: Sen. Diamond of Cumberland 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
2010-11 
Projections 
2011-12 
Projections 
2012-13 
Net Cost (Savings) 
General Fund 
$0 
($502,068) 
($549,632) 
($571,618) 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$0 
$0 
$502,068 
$26,425 
$549,632 
$28,928 
$571,618 
$30,085 
This amendment eliminates the impact of the committee amendment and institutes an exemption on sales and use tax 
for nonresident purchases of watercraft and watercraft materials, as well as a 60% sales and use tax exemption in 
paliicular circumstances. These exemptions are anticipated by the Bureau of Revenue Services to result in a net minor 
revenue increase owing to additional watercraft and watercraft materials sales. 
LR0392(07) - Fiscal Note - Page 1 of 1