An Act Regarding the Purchase of Fuel for Off-road Use
Maine Legislature, Session 124, LD 1045
Committee Amendment CA_A_H247 (House)

COMMITTEE AMENDMENT "A" to H.P. 720, L.D. 1045, Bill, "An Act 
Regarding the Purchase of Fuel for Off-road Use" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Provide a Sales Tax Refund for Fuel Used in Commercial Agricultural 
Production' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRS A §2013, as amended by PL 2007, c. 649, §8, is further amended 
to read: 
§2013. Refund of sales tax on depreciable machinery and equipment purchases and 
on internal combustion fuel' 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following words have the following meanings. 
A. "Commercial agricultural production" means commercial production of crops for 
human and animal consumption, including the commercial production of sod, an 
agricultural composting operation as defined in Title 7, section 152, subsection 1, the 
commercial production of seed to be used primarily to raise crops for nourishment of 
humans or animals and the production of livestock, including the removal and storage 
, of manure from that livestock. 
A-I. 
"Commercial aquacultural production" means the commercial production of 
cultured fish, shellfish, seaweed or other marine plants for human and animal 
consumption, including: 
(I) All cultivating activities occurring at hatcheries or nurseries, from the egg, 
larval or spore stages to the transfer of the product to a growing site; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 720, L.D. 1045 
(2) 
AIl cultivating activities occurring on water, from the receipt of fish, 
shellfish, seaweed or other marine plants from onshore facilities to the delivery of 
harvested products to onshore facilities for processing. 
B. 
"Commercial fishing" means attempting to catch fish or any other marine 
animals or organisms with the intent of disposing of them for profit or trade in 
commercial channels and does not include subsistence fishing for personal use, sport 
fishing or charter boat fishing where the vessel is used for carrying sport anglers to 
available fishing grounds. 
C. , 
"Depreciable machinery and equipment" means that part of the following 
machinery and equipment.for which depreciation is allowable under the Code and 
repair parts for that machinery and equipment: 
(1) New or used machinery and equipment for use directly and primarily in 
commercial agricultural production, including self-propelled vehicles, but 
excluding motor vehicles as defined in section 1752, subsection 7; attachments 
and equipment for the production of field and orchard crops; new or used 
machinery and equipment for use directly and primarily in production of milk, 
animal husbandry and production of livestock, including poultry; and new or 
used machinery and equipment not used directly and primarily in commercial 
agricultural production, but used to transport potatoes from a truck into a storage 
location; 
(2) New or used watercraft, nets, traps, cables, tackle and related equipment 
necessary to and used directly and primarily in the operation of a commercial 
fishing venture, but excluding motor vehicles as defined in section 1752, 
subsection 7; or 
(3) New or used watercraft, machinery or equipment used directly and primarily 
for commercial aquacultural production, including, but not limited to: nets; ropes; 
cables; anchors and anchor weights; shackles and other hardware; buoys; fish 
tanks; fish totes; oxygen tanks; pumping systems; generators; water-heating 
systems; boilers and related pumping systems; diving equipment; feeders and 
related equipment; power-generating equipment; tank water-level sensors; 
aboveground piping; water-oxygenating systems; fish-grading equipment; safety 
equipment; and sea cage systems, including walkways and frames, lights, netting, 
buoys, shackles, ropes, cables, anchors and anchor weights; but excluding motor 
vehicles as defined in section 1752, subsection 7. 
2. Refund authorized. Any person, association of persons, firm or corporation that 
purchases electricity, or that purchases or leases depreciable machinery or equipment, for 
use 
in 
commercial agricultural production, commercial fishing or commercial 
aquacultural production must be refunded the amount of sales tax paid upon presenting to 
the State Tax Assessor evidence that the purchase is eligible for refund under this section. 
Evidence required by the assessor may include a copy or copies of that portion of the 
purchaser's or lessee's most recent filing under the United States Internal Revenue Code 
that indicates that the purchaser or lessee is engaged in commercial agricultural 
production, commercial fishing or commercial aquacultural production and that the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to RP. 720, L.D. 1045 
purchased machinery or equipment is depreciable for those purposes or would be 
depreciable for those purposes if owned by the lessee. 
In the event that any piece of machinery or equipment is only partially depreciable under 
the United States Internal Revenue Code, any reimbursement of the sales tax must be 
prorated accordingly. In the event that electricity is used in qualifying and nonqualifying 
activities, any reimbursement of the sales tax must be prorated accordingly. 
Application for refunds must be filed with the assessor within 36 months of the date of 
purchase or execution of the lease. 
3. Purchases made free of tax with certificate. Sales tax need not be paid on the 
purchase of electricity or of a single item of machinery or equipment if the purchaser has 
obtained a certificate from the assessor stating that the purchaser is engaged in 
commercial agricultural production, commercial fishing or commercial aquacultural 
production and authorizing the purchaser to purchase electricity or depreciable machinery 
and equipment without paying Maine sales tax. The seller is required to 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 the purchase for exemption pursuant to 
this section. 
In order to qualify for this exemption, the electricity or depreciable 
machinery or equipment must be used directly in commercial agricultural production, 
commercial fishing or commercial aquacultural production. In order to qualify for this 
exemption, the electricity must be used in qualifying activities, including supp0\1 
operations. 
Sales tax may be reduced on the purchase of dyed fuel, as defined in section 3202, 
subsection 2-A, if the purchaser has obtained a certificate from the assessor stating that 
the purchaser is engaged in commercial agricultural production. The reduced sales tax 
amount is equal to the portion of the sales tax attributable to the sale price of dyed fuel 
that exceeds $3 for sales from October 1, 2009 to June 30, 2010 and $3.50 for sales after 
June 30, 2010. 
4. Internal combustion fuel for commercial agricultural production. Any person 
that purchases internal combustion fuel for the purpose of commercial agricultural 
production must be refunded a portion of sales tax paid upon presenting to the State Tax 
Assessor evidence that the purchase is eligible for refund under this section. The amount 
of the refund is equal to the portion of the sales tax attributable to the sale price of 
internal combustion fuel that exceeds $3 for sales from July I, 2009 to June 30, 2010 and 
$3.50 for sales after June 30, 2010. Applications for refund must be filed with the 
assessor within 36 months of the date of purchase. By January 15th, annually, the State 
Tax Assessor shall report to the joint standing committee of the Legislature with 
jurisdiction over taxation matters the number of persons granted refunds under this 
subsection and the amount of refunds paid during the previous calendar year. 
Sec. 2. Effective date. This Act takes effect October 1,2009.' 
SUMMARY 
This amendment expands the application of the sales tax refund to fuel used for 
commercial agricultural production and provides that the refund applies only to the sales 
tax on the portion of the sale price that exceeds $3 from July 1,2009 to June 30, 2010 and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 14 "to H.P. 720, L.D. 1045 
$3.50 thereafter. The amendment also permits a person with a certificate stating that the 
person is engaged in commercial agricultural production to purchase dyed fuel with the 
sales tax reduced. The amendment also requires the State Tax Assessor to report on the 
number of persons granted refunds and the amount of refunds paid during the previous 
calendar year. 
FISCALL'"OTE REQ'CIRED 
(S_ee at_~~c.bed) 
COMMITTEE AMENDMENT 
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LD 1045 
LR 433(02) 
An Act Regarding the Purchase of Fuel for Off-road Use 
Fiscal Note for Bill as Amended by Committee Amendment ,A" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
$0 
2010-11 
$0 
Projections 
2011-12 
$201,144 
Other Special Revenue Funds 
$0 
$0 
$0 
$0 
($201,144) 
($11,033) 
Fiscal Detail and Notes 
Projections 
2012-13 
$428,359 
($428,359) 
($23,497) 
The bills refunds a portion of the sales tax paid on the purchase fuel for commercial agriculture production. The sales 
tax refund applies only to the portion of the sales when the cost exceeds $3.00 per gallon from July 1,2009 to June 30, 
2010 and $3.50 thereafter. The sales tax refund results in a loss of revenue to the General Fund of $201,144 in FY 
2011-12 and $428,359 in FY 2012-13. There will also be a loss of revenue to the Local Government Fund of$II,033 
in FY 2010-12 and $23,497 in FY 2011-13. Additional costs to Maine Revenue Service in refunding the. sales tax can 
be absorbed within existing resources. 
LR0433(02) - Fiscal Note - Page I of I