An Act To Protect Maine's Natural Resources Jobs by Exempting from Sales Tax Petroleum Products Used in Commercial Farming, Fishing and Forestry
Maine Legislature, Session 127, LD 1481
Committee Amendment CA_A_S385 (Senate)
Amends: 36 MRSA §2013

COMMITTEE AMENDMENT "A" to S.P. 579, L.D. 1481, Bill, "An Act To 
Protect Maine's Natural Resources Jobs by Exempting from Sales Tax Petroleum 
Products Used in Commercial Farming, Fishing and Forestry" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Protect Maine's Natural Resources Jobs by Exempting from Sales Tax 
Fuel Used in Commercial Farming, Fishing and Forestry' 
Amend the bill by inserting after the title and before the enacting clause 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, this bill provides a sales tax exemption or refund to protect jobs in certain 
natural resources industries; and 
Whereas, many of those natural resources industries experience their highest 
volume of work during the summer months; and 
Whereas, it is critical to the protection of jobs in those natural resources industries 
that the sales tax exemption or refund be available sooner than 90 days after adjournment 
of the Second Regular Session of the 127th Legislature; 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,' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §2013, sub-§§2 and 3, as amended by PL 2011, c. 657, Pt. N, 
§2 and affected by §3, are further amended to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 579, L.D. 1481 
2. Refund authorized. Any person, association of persons, firm or corporation that 
purchases electricity or fuel, or that purchases or leases depreciable machinery or 
equipment, for use in commercial agricultural production, commercial fishing, 
commercial aquacultural production or commercial wood harvesting er that fHifehases 
fuel for 1:1se ia a eefflill.ereial fishiag vessel 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 fer a eemm.ereial fishiag vessel 
is used in qualifying and nonqualifying activities, any reimbursement of the sales tax 
must be prorated accordingly. 
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 eeffiffiereial fishiag v:essel 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 fer a eefflffiereial fishiag vessel 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 eeffifflereial fishiag vessel 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 eeEB.EB.ereial fishing vessel must be used in 
qualifying activities, including support operations.' 
Amend the bill by adding before the summary the following: 
'Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect July 1, 2016.' 
SUMMARY 
This amendment strikes the bill and instead extends that sales tax exemption or 
refund to fuel used in commercial agricultural production, aquacultural production and 
wood harvesting. 
COMMITTEE AMENDMENT 
.._.,,,. 
''4,\,~ 
COMMITTEE AMENDMENT"A" to S.P. 579, L.D. 1481 
I 
The amendment also adds an emergency preamble and emergency clause to allow the 
legislation to take effect July 1, 2016. 
FISCAL ~OTE REQUIRED 
{See attached) 
·-~ 
COMMITTEE AMENDMENT 
Approved: 03/01/16 
.feaC!-
LD 1481 
LR 2215(02) 
An Act To Protect Maine's Natural Resources Jobs by Exempting from Sales Tax Petroleum Products 
Used in Commercial Farming, Fishing and Forestry 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment 'lt" '5-3,') 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015·-16 
FY 2016-17 
$0 
$8,771,980 
Projections 
FY 2017-18 
$10,017,152 
Projections 
FY 2018-19 
$10,901,174 
($10,017,152) 
($10,901,174"} 
Other Special Revenue Funds 
$0 
$0 
($8, 771,980) 
($179,020) 
($204,432) 
($222,473) 
Fiscal Detail and Notes 
This legislation proposes a sales tax exemption on the purchase of fuel used in commercial agricultural production, 
commercial fishing, commercial aquacultural production and commercial wood harvesting and would result in a loss 
of General Fund and Local Government Fund revenue in fiscal year 2016-17 of $8, 771,980 and $179,020, 
respectively. 
LR2215(02) - Fiscal Note ·· Page 1 of I