An Act To Impose an Excise Tax on the Extraction of Water for Bottling
Maine Legislature, Session 124, LD 0237
Committee: Taxation
Sponsors: HINCK, WATSON, BERRY, PERCY, PERRY, BLISS, BRYANT, MARRACHE

MAINE STATE LEGISLATURE 
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Legislative Document 
No. 237 
H.P. 191 
House of Representatives, January 23,2009 
An Act To Impose an Excise Tax on the Extraction of Water for 
Bottling 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative HINCK of Portland. 
Cosponsored by Representative WATSON of Bath and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: BERRY of Bowdoinham, PERCY of Phippsburg, PERRY of Calais, 
Senators: BLISS of Cumberland, BRYANT of Oxford, MARRACHE of Kelmebec. 
Printct..!lll1 n:Lyclcd pnpcr 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MR.SA c. 370-A is enacted to read: 
CHAPTER 370-A 
EXTRACTION OF WAl'ER FOR BO'f'fLING 
§2831. Definitions 
As used in this chapter, unless the context otherwise indicates, the following tenns 
have the following meanings. 
1. Bottled water operator. "Bottled water operator" means a person engaged in the 
business of bottling or packaging water for sale in containers of 5 gallons or less. 
§2832. Excise tax 
1. Imposition of tax. An excise tax is imposed on each bottled water operator that 
extracted more than 1,000,000 gallons of water in the previous calendar year for the 
privilege of engaging in the business of extracting groundwater or surface water from 
springs or other underground sources within the State for commercial bottling for sale. 
2. Rate of tax. The excise tax is imposed at a rate of one cent per gallon of water 
extracted. 
3. Payment. Each bottled water operator shall prepare and submit to the bureau a 
monthly report according to procedures specified by the bureau showing the total gallons 
of water extracted for bottling during the preceding month and other infonnation required 
by the bureau. The tax must be paid each month to the bureau at the same time the report 
is submitted. 
4. Records. Each bottled water operator shall keep a record of all water bottled in 
this State, and that record must be open at all times to the inspection of the assessor. 
5. . Enforcement. The tax imposed by this chapter may be enforced using the 
enforcement and collection procedures provided in chapter 7. 
§2833. Application of revenues 
1. Revenues. All revenues received by the bureau under this chapter after reduction 
for administrative cost must be credited to a General Fund suspense account. No later 
than the last day of each month, the State Controller shall transfer all revenues received 
by the bureau in the following manner: 
A. Twenty-five percent to the Maine Environmental Protection Fund established 
under Title 38, section 351 for use in watershed and water quality protection; 
B. Fifty percent to the Tax Relief Fund for Maine Residents established under Title 
5, section 15I8-A; and 
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C. Twenty-five percent to the municipality where the water was extracted. 
SUMMARY 
This bill creates an excise tax of one cent per gallon on the extraction of groundwater 
or surface water from springs or other underground sources by a bottled water operator 
who extracted more than 1,000,000 gallons in the previous calendar year if the water will 
be packaged for sale in containers of 5 gallons or less. The revenue from the tax is 
applied 25% to watershed and water quality protection, 50% to tax relief for Maine 
residents and 25% to the municipality where the water was extracted in recognition that 
persons extracting large amounts of groundwater in Maine for sale benefit from the state 
and local groundwater protection activities.