An Act To Exempt Fuel Used by Commercial Farmers from Sales Tax
Maine Legislature, Session 127, LD 0030
Committee: Taxation
Sponsors: PIERCE, CYRWAY, BATTLE, DOORE, HICKMAN, WOOD, BAKER, KATZ, MIRAMANT
Amends: 36 MRSA §2013

Legislative Document 
No. 30 
H.P. 29 
House of Representatives, January 13, 2015 
An Act To Exempt Fuel Used by Commercial Farmers from Sales 
Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative PIERCE of Dresden. 
Cosponsored by Senator CYRWAY of Kennebec and 
Representatives: BATTLE of South Portland, DOORE of Augusta, HICKMAN of Winthrop, 
McCABE of Skowhegan, WOOD of Sabattus, Senators: BAKER of Sagadahoc, KATZ of 
Kennebec, MIRAMANT of Knox. 
Be it enacted by the People of the State of Maine as follows: 
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: 
2.  Refund authorized.  Any person, association of persons, firm 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 commercial 
agricultural production or in a commercial fishing 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 for commercial agricultural 
production or a commercial fishing 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 commercial agricultural production or a commercial 
fishing vessel 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 commercial agricultural production or a commercial fishing 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 commercial agricultural production or a commercial fishing 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 commercial agricultural 
production or a commercial fishing vessel must be used in qualifying activities, including 
support operations. 
Sec. 2.  Effective date.  This Act takes effect October 1, 2015. 
SUMMARY 
This bill provides a sales tax refund or exemption for fuel used in commercial 
agricultural production.