Resolve, To Review and Update Sales Tax Exemptions for Products Purchased for Agricultural Use
Maine Legislature, Session 124, LD 0074
Committee Amendment CA_A_H59 (House)

COMMITTEE AMENDMENT "A " to H.P. 64, L.D. 74, "Resolve, To Review and 
Update Sales Tax Exemptions for Products Purchased for Agricultural Use" 
Amend the resolve by striking out everything after the title and before the summary 
and inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, interpretations of statute and communication of interpretations are 
essential for consistent implementation of laws; and 
Whereas, the review of certain sales tax exemptions by 3 state agencies is a first 
step in developing recommendations'for improvements in rules and bulletins; and 
Whereas, these recommendations need to come back to the, joint standing 
committees of jurisdiction; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, be it 
Sec. 1. Review of rules and bulletins. Resolved: 
That the Department of 
Agriculture, Food and Rural Resources, referred to as "the department" in this resolve, 
shall review the rules and bulletins of the Department of Administrative and Financial 
Services, Bureau of Revenue Services, referred to in this resolve as "the bureau," related 
to sales tax exemptions for the purchase of products used in commercial agricultural crop 
production or in animal agriculture pursuant to the Maine Revised Statutes, Title 36, 
section 1760, subsections 7-B and 7-C and the refund of sales taxes related to machinery 
and equipment purchases for commercial agricultural production pursuant to Title 36, 
section 2013. The department shall determine whether or not the appropriate products, 
machinelY and equipment are included in rules or in bulletins written and distributed by 
COMMITTEE AMENDMENT 
I 
COMMITIEE AMENDMENT "A" to H.P. 64, L.D. 74 
the bureau to interpret the statutory provisions for sales tax exemptions and sales tax 
refunds pertaining to agriculture. 
The department shall confer with the Department of Conservation on the advisability 
of including the growing of trees for harvest in the definition of "commercial agricultural 
crop production." No later than September 15, 2009, the department shall provide the 
bureau with any recommended changes to the bureau's rules and bulletins; and be it 
further 
Sec. 2. Notice of revisions to and interpretations of rules and bulletins. 
Resolved: 
That the bureau shall provide the department with a description of the 
process used to notify the public, and retailers and wholesalers in particular, of 
amendments to the bureau's rules and revisions to the bureau's bulletins regarding 
products qualifying for sales tax exemptions or equipment and machinery eligible for a 
sales tax refund. The bureau shall also provide the department with a description on how 
the bureau responds to requests for an interpretation of the statutes, rules or bulletins 
developed to implement the statutes. The bureau, in consultation with the department, 
shall develop a protocol for documenting requests for interpretations and responding to 
them. The goal of this review is to improve the bureau's ability to deliver consistent 
responses to inquiries and accountability within the bureau; and be it further 
Sec. 3. 
Report and recommendations submitted to joint standing 
committees. Resolved: 
That the bureau shall review the recommendations of the 
department under section I and prepare proposed changes to the bureau's rules and 
bulletins based on the recommendations. The bureau shall prepare a response to the 
department's recommended changes that includes the bureau's comments on each 
recommended change and any statutory changes needed to implement the. department's 
recommendations, and include this information in its report to the legislative committees 
along with an estimate of the fiscal impact of each recommendation. 
The bureau shall report its findings and any recommendations to the Joint Standing 
Committee on Taxation and the Joint Standing Committee on Agriculture, Conservation 
and Forestry by January 15, 2010. The report must include a description of an improved 
protocol to respond to requests for interpretations as developed under section 2. The 
recommendations may include revisions to the bureau's bulletins or rules or convey a 
decision to adopt rules to clarify products eligible for the sales tax exemption and 
. purchases eligible for a refund of sales tax. The Joint Standing Committee on Taxation 
and the Joint Standing Committee on Agriculture, Conservation and Forestry may each 
submit legislation to the Second Regular Session of the 124th Legislature relating to the 
report. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment requires the Department of Agriculture, Food and Rural Resources 
to confer with the Department of Conservation prior to making recommendations to the 
Department of Administrative and Financial Services, Bureau of Revenue Services 
regarding sales tax exemptions for products used in commercial agricultural crop 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT A " 
to H.P. 64, L.D. 74 
production. It also requires the bureau to develop a protocol for responding to requests 
for interpretations regarding sales tax exemptions and refunds and to include a description 
of the protocol in the bureau's report. 
It also authorizes both the Joint Standing 
Committee on Taxation and the Joint Standing Committee on Agriculture, Conservation 
and Forestry to submit legislation. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/13/09 Wac. 
LD74 
LR 566(02) 
Resolve, To Review and Update Sales Tax Exemptions for Products Purchased for Agricultural Use 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment 'fI" 
Committee: Agriculture, Conservation and Forestry 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Pending recommendations from the Department of Agriculture, Food and Rural Resources, Maine Revenue Services 
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will review the rules and bulletins related to sales tax exemptions for agricultural products and recommend changes to-., 
the legislature. Additional costs to the Department of Agriculture, Food and Rural Resources, Department of 
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Conservation and Maine Revenue Services associated with the review can be absorbed within existing budgeted 
resources. 
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LR0566(02) - Fiscal Note - Page 1 of 1