An Act To Promote Fairness in the Sales Tax Exemption for Vehicles Used in Interstate Commerce
Maine Legislature, Session 126, LD 0741
Committee: Taxation
Sponsors: THOMAS, GIFFORD, COLLINS, SHERMAN, WHITTEMORE, BROOKS, DAVIS, FREDETTE, HARVELL, TIMBERLAKE
Amends: 36 MRSA §1760

Legislative Document 
No. 741 
S.P. 279 
In Senate, February 28, 2013 
An Act To Promote Fairness in the Sales Tax Exemption for 
Vehicles Used in Interstate Commerce 
Reference to the Committee on Taxation suggested and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator THOMAS of Somerset. 
Cosponsored by Representative GIFFORD of Lincoln and 
Senators: COLLINS of York, SHERMAN of Aroostook, WHITTEMORE of Somerset, 
Representatives: BROOKS of Winterport, DAVIS of Sangerville, FREDETTE of Newport, 
HARVELL of Farmington, TIMBERLAKE of Turner. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1760, sub-§41, as amended by PL 2011, c. 501, §1, 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 
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, property "placed in use 
as an instrumentality of interstate or foreign commerce" includes property without 
operating authority under 49 Code of Federal Regulations, Section 392.9a.  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 a bona fide payload 
that both originates and terminates within the State, unless the personal property is a 
bus with a capacity of at least 47 passengers that is engaged in transporting within the 
State a bona fide payload of travelers on an interstate or foreign cruise that originates 
outside the State and terminates outside the State and the transportation is provided 
pursuant to a contract between the interstate or foreign cruise provider and the person 
providing the transportation. 
C.  The exemption provided by this subsection is not limited to instrumentalities 
otherwise required to be exempt under the United States Constitution. 
SUMMARY 
This bill provides a sales tax exemption for vehicles used in interstate or foreign 
commerce, including those without operating authority under 49 Code of Federal 
Regulations, Section 392.9a.