An Act To Provide Assistance to Maine's Dairy Fanns
Maine Legislature, Session 126, LD 0707
Committee Amendment CA_A_S168 (Senate)
Amends: 36 MRSA §2013

COMMITTEE AMENDMENT "A " to S.P. 256, L.D. 707, Bill, "An Act To 
Provide Assistance to Maine's Dairy Fanns" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Refund the Sales Tax Paid on Fuel Used in Commercial Agricultural 
Production' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 36 MRSA §2013, suh-§§2 and 3, as amended by PL 2011, c. 657, Pt. N, 
§2 and affected by §3, are further amended to read: 
2. Refund authorized. Aay person, association of persons, fInn or corporation that 
purchases electricity, or that purchases or leases depreciable machinery or equipment, for 
use in commercial agricultural production, commercial fIshing, commercial aquacultural 
production or commercial wood harvesting or that purchases fuel for use in a commercial 
fishing vessel or for use in commercial agricultural 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, commercial aquacultural production or commercial 
wood harvesting and that the 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 or fuel for a commercial fishing vessel 
or for commercial agricultural production is used in qualifying and nonqualifying 
activities, any r~imbursement of the sales tax must be prorated accordingly. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 256, L.D. 707 
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, fuel for a commercial fishing vessel or for commercial 
agricultural production or 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, commercial aquacultural 
production or commercial wood harvesting and authorizing the purchaser to purchase 
electricity, fuel for a commercial fishing vessel or for commercial agricultural production 
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, fuel for a commercial fishing vessel or for commercial agricultural 
production or depreciable machinery or equipment must be used directly in commercial 
agricultural production, commercial fishing, commercial aquacultural production or 
commercial wood harvesting. In order to qualify for this exemption, the electricity or 
fuel for a cOlmnercial fishing vessel or for commercial agricultural production must be 
used in qualifying activities, including support operations. 
Sec. 2. Application. This Act applies to purchases of fuel for use in commercial 
agricultural production on or after October 1, 2013.' 
SUMMARY 
This amendment requires the refund of sales tax on purchases of fuel for use in 
commercial agricultural production and permits the issuance of a certificate pennitting 
the purchases of such fuel without paying sales tax if the purchaser obtains a certificate 
verifying eligibility from the State Tax Assessor. 
The amendment provides an 
application date of October 1, 2013. 
FISCAL :-;OTE REQl:IRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Approved: OS/29/13 
,;!;pac 
LD707 
LR 1598(02) 
An Act To Provid,e Assistance to Maine's Dairy Farms 
Fiscal Note for Bill as Amended by Committee AmendmentjJ\' (S-l lD8) 
Committee: Agriculture, Conservation and Forestry 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
FY 2014-15 
$250,800 
$315,067 
Projections 
FY 2015-16 
$316,643 
Projections 
FY 2016-17 
$318,226 
Other Special Revenue Funds 
($250,800) 
($13,200) 
($315,067) 
($16,583) 
($316,643) 
($16,665) 
($318,226) 
($16,749) 
Fiscal Detail and Notes 
This bill reduces General Fund revenue by $250,800 in FY 2013-14 and by $315,067 in FY 2014-15 and reduces 
Municipal Revenue Sharing revenue by $13,200 in FY 2013-14 and by $16,583 in FY 2014-15 due to refunding the 
sales tax paid on purchases of fuel for use in commercial agricultural production and permitting a sales tax exemption 
on this fuel if the purchaser receives an eligibility certificate from Maine Revenue Services. 
LR1598(02) - Fiscal Note - Page 1 of 1