An Act To Amend the Definition of "Retail Sale" for Purposes of the Sales and Use Tax Law
Maine Legislature, Session 125, LD 0713
Committee: Taxation
Sponsors: KNIGHT, MASON, AYOTTE, CROCKETT, GIFFORD, HARMON, MALABY, PICCHIOTTI, TIMBERLAKE, VOLK
Amends: 36 MRSA §1752

Legislative Document 
No. 713 
H.P. 544 
House of Representatives, February 23, 2011 
An Act To Amend the Definition of "Retail Sale" for Purposes of the 
Sales and Use Tax Law 
Received by the Clerk of the House on February 18, 2011.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative KNIGHT of Livermore Falls. 
Cosponsored by Senator MASON of Androscoggin and 
Representatives: AYOTTE of Caswell, CROCKETT of Bethel, GIFFORD of Lincoln, 
HARMON of Palermo, MALABY of Hancock, PICCHIOTTI of Fairfield, TIMBERLAKE of 
Turner, VOLK of Scarborough. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1752, sub-§11, ¶B, as repealed and replaced by PL 2009, c. 
434, §22, is amended to read: 
B.  "Retail sale" does not include: 
(1)  Any casual sale; 
(2)  Any sale by a personal representative in the settlement of an estate unless the 
sale is made through a retailer or the sale is made in the continuation or operation 
of a business; 
(3)  The sale, to a person engaged in the business of renting automobiles, of 
automobiles, integral parts of automobiles or accessories to automobiles, for 
rental or for use in an automobile rented on a short-term basis; 
(4)  The sale, to a person engaged in the business of renting video media and 
video equipment, of video media or video equipment for rental; 
(5)  The sale, to a person engaged in the business of renting or leasing 
automobiles, of automobiles for rental or lease for one year or more; 
(6)  The sale, to a person engaged in the business of providing cable or satellite 
television services, of associated equipment for rental or lease to subscribers in 
conjunction with a sale of extended cable or extended satellite television services; 
(7)  The sale, to a person engaged in the business of renting furniture or audio 
media and audio equipment, of furniture, audio media or audio equipment for 
rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 
11-105; 
(8)  The sale of loaner vehicles to a new vehicle dealer licensed as such pursuant 
to Title 29-A, section 953; 
(9)  The sale of automobile repair parts used in the performance of repair services 
on an automobile that has a gross vehicle weight of 10,000 pounds or less 
pursuant to an extended service contract sold on or after September 20, 2007 that 
entitles the purchaser to specific benefits in the service of the that automobile for 
a specific duration; 
(10)  The sale, to a retailer that has been issued a resale certificate pursuant to 
section 1754-B, subsection 2-B or 2-C, of tangible personal property for resale in 
the form of tangible personal property, except resale as a casual sale; 
(11)  The sale, to a retailer that has been issued a resale certificate pursuant to 
section 1754-B, subsection 2-B or 2-C, of a taxable service for resale, except 
resale as a casual sale; 
(12)  The sale, to a retailer that is not required to register under section 1754-B, 
of tangible personal property for resale outside the State in the form of tangible 
personal property, except resale as a casual sale; 
(13)  The sale, to a retailer that is not required to register under section 1754-B, 
of a taxable service for resale outside the State, except resale as a casual sale; or 
(14)  The sale of repair parts used in the performance of repair services on 
telecommunications equipment as defined in section 2551, subsection 19 
pursuant to an extended service contract that entitles the purchaser to specific 
benefits in the service of the telecommunications equipment for a specific 
duration. 
SUMMARY 
Under the Sales and Use Tax Law, "retail sale" does not include the sale of 
automobile parts used in the performance of repair services on an automobile pursuant to 
an extended service contract.  This bill specifies that this exclusion applies only to repair 
parts used in repair services on automobiles weighing 10,000 pounds or less.