An Act To Promote Fairness in the Sales Tax Exemption for Vehicles Used in Interstate Commerce
Maine Legislature, Session 126, LD 0741
Committee Amendment CA_A_S54 (Senate)
Amends: 36 MRSA §1760

COMMITTEE AMENDMENT "A " to S.P. 279, L.D. 741, Bill, "An Act To 
Promote Fairness in the Sales Tax Exemption for Vehicles Used in Interstate Commerce" 
Amend the bill by striking out all of section 1 and inserting the following: 
'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 PUll10ses of this subsection, property is "placed in 
use by the purchaser as an instrumentality of interstate or foreign commerce" if it 
includes property without operating authority under 49 Code of Federal Regulations, 
Section 392.9a. 
For purposes of this subsection, property is "placed in use by the 
PJlrchaser 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, "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 non transportation business in interstate 
commerce. 
B. For purposes of this subsection, personal property is not in use by the purchaser 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 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 279, L.D. 741 
transporting within the State a bona fide payload of travelers on an interstate or 
foreign cmise 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 instmmentalities 
otherwise required to be exempt under the United States Constitution.' 
SUMMARY 
This amendment clarifies that it is the purchaser who places property for use In 
interstate or foreign commerce. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/16113 
;;!;?ac.. 
LD741 
LR 1248(02) 
An Act To Promote Fairness in the Sales Tax Exemption for Vehicles Used in Interstate Commerce 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment ''A' {S-6~) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
FY 2014-15 
$342,000 
$446,310 
Projections 
FY 2015-16 
$466,394 
Projections 
FY 2016-17 
$487,381 
Other Special Revenue Funds 
($342,000) 
($18,000) 
($446,310) 
($23,490) 
. ($466,394) 
($24,547) 
($487,381) 
($25,652) 
Fiscal Detail and Nott~S 
Exempting from the sales tax property placed in use as an instrumentality of interstate or foreign commerce by the 
purchaser that is without operating authority under 49 Code of Federal Regulations, Section 392-9a reduces General 
Fund revenue by $342,000 in FY 2013-14 and by $446,310 in FY 2014-15 and Municipal Revenue Sharing by 
$18,000 in FY 2013-14 and $23,490 in FY 2014-15. 
LRI248(02) - Fiscal Note - Page 1 of 1