An Act To Make Minor Substantive Changes to the Tax Laws
Maine Legislature, Session 124, LD 1401
Committee Amendment CA_A_H482 (House)
Amends: 36 MRSA §1760

COMMITTEE AMENDMENT "A" to H.P. 980, L.D. 1401, Bill, "An Act To 
Make Minor Substantive Changes to the Tax Laws" 
Amend the bill by inserting after section 17 the following: 
'Sec. 18. 36 MRSA §1760, sub-§25, as amended by PL 2007, c. 438, §39, is 
further amended to read: 
25. Watercraft sold to nonresidents. Sales of watercraft to a person that is not a 
resident of this State, when the watercraft is intended to be sailed or transported outside 
the State immediately upon within 30 days of delivery by the seller; sales to a person that 
is not a resident of this State, under contracts for the construction of a watercraft intended 
te--Be that is sailed or transported outside the State immediately upon within 30 days of 
delivery by the seller, of materials to be incorporated in the watercraft; and sales to a 
person that is not a resident of this State, for the repair, alteration, refitting, 
reconstruction, overhaul or restoration of a watercraft intended to be that is sailed or 
transported outside the State immediately upon within 30 days of delivery by the seller, 
of materials to be incorporated in the watercraft. Unless the watercraft is present in the 
State, for a purpose other than temporary storage, for more than 30 days during the 12-
'month period following its date of purchase or is registered in Maine without also being 
registered in another state or documented with a location in this State, within 12 months 
of the date of purchase, the purchaser is exempt from the use tax. 
Sec. 19. 36 MRSA §1760, sub-§41, as amended by PL 1999, c. 759, §3 and 
affected by §4, is further amended to read: 
41. Certain instrumentalities of interstate or foreign commerce. The sale of a 
vehicle, railroad rolling stock, aircraft or watercraft that is placed in use by the purchaser 
as an instrumentality of interstate or foreign commerce within 30 days after that sale and 
, that is used by the purchaser not less than 80% of the time for the next 2 years as an 
instrumentality of interstate or foreign commerce. The State Tax Assessor may for good 
cause extend for not more than 60 days the time for placing the instrumentality in use in 
interstate or foreign commerce. For purposes of this subsection, property is "placed in 
use as an instrumentality of interstate or foreign commerce" by its carrying of, or 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT ,A" to H,P. 980, L.D. 1401 
providing the motive power for the carrying of, a bona fide payload in interstate or 
foreign commerce, or by being dispatched to a specific location at which it will be loaded 
upon arrival with, or will, be used as motive power for the carrying of, a payload in 
interstate or foreign commerce. For purposes of this subsection, "bona fide payload" 
means a cargo of persons or property transported by a contract or common carrier for 
compensation that exceeds the direct cost of carrying that cargo or pursuant to a legal 
obligation to provide service as a public utility or a cargo of property transported in the 
reasonable conduct of the purchaser's own nontransportation business in interstate 
commerce. 
B. 
For purposes of this subsection, personal property is not in use as an 
instrumentality of interstate or foreign commerce when carrying only cargo that both, 
originates and terminates within the State. 
C. 
The exemption' provided by this subsection is not limited to instrumentalities 
otherwise required to be exempt under the United States Constitution.' 
Amend the bill in section 26 in §5219-BB in subsection 1 by striking out all of 
paragraph A (page 7, lines 33 to 40 in L.D.) and inserting the following: 
"A. 
"Affordable Certified affordable housing project" means a decent, safe and 
sanitary dwelling, apartment or other living accommodation for a household '''''hose 
income does not exceed 60% of the median income for the area as defined by the 
United States Department of Housing and Urban Development under the United 
States Housing Act of 1937, Public La'i.,. 412, 50 Stat. 888, Section 8, as amended that 
has been certified by the Maine State Housing Authority as an affordable housing 
project pursuant to Title 30-A, section 4722, subsection 1, paragraph DD.' 
Amend the bill in section 26 in §5219-BB in subsection 1 by striking out all of 
paragraph C (page 8, lines 4 to 11 in L.D.) and inserting the following: 
'C. "Certified qualified rehabilitation expenditure" means a qualified rehabilitation 
expenditure, as defined by the Code, Section 47(c)(2), made between January 1,2008 
and December 31,2013 certified by the director under Title 27, section 511. For 
purposes of subsection 2, paragraph B, qualified rehabilitation expenditures incurred 
in the certified rehabilitation of a certified historic structure located in the State do 
not include a requirement that the certified historic structure be substantially 
rehabilitated.' 
Amend the bill in section 26 in §5219-BB by striking out all of subsection 4 (page 9, 
lines 19 to 22 in L.D.) and inserting the following: 
'4. Maximum credit. The credit allowed pursuant to this section may not exceed 
$5,000,000 for each certified rehabilitation project under Section 47 of the Code placed 
into service in the State during the taxable year for which a credit is claimed under this 
section.' 
Amend the bi II by striking out all of section 29. 
Amend the bill in section 36 in the last line (page 11, line 32 in L.D.) by inserting 
after the following: "2008." the following: 'The portion of this Act that enacts Title 36, 
section 1760, subsection 41, paragraph B applies retroactively to January 1, 2008. The 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT "A" to H.P. 980,L.D. 1401 
portion of this Act that enacts Title 36; section 1760, subsection 41, paragraph C applies 
retroactively to June 15,2001.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment restores the exemption to its application by Maine Revenue Services 
prior to the recent Maine Law Court decision, John T. Cyr & Sons, Inc. v. State Tax 
Assessor, 200Q ME 52, by codifying Maine Revenue Services Rule 318(3) and clarifying 
that the exemption is not limited only to situations when the Commerce Clause requires 
lOan exemption from the sales or use tax. 
The amendment modifies the sales tax exemption for watercraft sold to nonresidents 
to provide that the exemption applies as long as the watercraft is removed from the State 
within 30 days of sale. 
The amendment removes changes to the income tax credit for rehabilitation of 
historic properties that applies the maximum credit limitation to certified historic 
structures rather than to a certified historic project. 
The amendment removes a section that provides that an extension of time to file a 
Maine income tax return does not extend the period for filing a claim for an income tax 
credit or refund. 
FISCAL \'OTE REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: OS/28/09 *ac:.. 
LD 1401 
LR 429(02) 
An Act To Make Minor Substantive Changes to the Tax Laws 
Fiscal Note for Bill as Amended by Committee Amendment A " 
Committee: Taxation 
. 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Additional costs to Maine Revenue Services associated with making minor substantive changes to the tax law can be 
absorbed within existing budgeted resources. 
LR0429(02) - Fiscal Note - Page 1 of 1 
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