An Act To Refund the Sales Tax Paid on Fuel Used in Commercial Agricultural Production and Commercial Wood Harvesting
Maine Legislature, Session 127, LD 0290
Committee: Taxation
Sponsors: CUSHING, THERIAULT, BURNS, THIBODEAU, ESPLING, FARRIN, GUERIN, HANINGTON, HEAD, WADSWORTH
Amends: 36 MRSA §2013

Legislative Document 
No. 290 
S.P. 104 
In Senate, February 5, 2015 
An Act To Refund the Sales Tax Paid on Fuel Used in Commercial 
Agricultural Production and Commercial Wood Harvesting 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator CUSHING of Penobscot. 
Cosponsored by Representative THERIAULT of China and 
Senators: BURNS of Washington, President THIBODEAU of Waldo, Representatives: 
ESPLING of New Gloucester, FARRIN of Norridgewock, GUERIN of Glenburn, 
HANINGTON of Lincoln, HEAD of Bethel, WADSWORTH of Hiram. 
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 a commercial 
fishing vessel or fuel for use in commercial wood harvesting or 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 
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 commercial fishing vessel or for use in commercial 
wood harvesting or 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 use in 
commercial wood harvesting or 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 use in commercial wood harvesting or 
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 commercial fishing vessel or for use in commercial 
wood harvesting or commercial agricultural production 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 and use tax refund or exemption for fuel used in commercial 
wood harvesting or commercial agricultural production.