An Act To Exempt Fuel Purchased for Off-road Use in Commercial Construction and Wood Harvesting Equipment from Sales and Use Tax
Maine Legislature, Session 127, LD 0432
Committee: Taxation
Sponsors: BURNS, CAMPBELL, DAVIS, ROSEN, WHITTEMORE, GUERIN, MAKER, MOONEN, SHORT, TUELL
Amends: 36 MRSA §2013

Legislative Document 
No. 432 
S.P. 161 
In Senate, February 24, 2015 
An Act To Exempt Fuel Purchased for Off-road Use in Commercial 
Construction and Wood Harvesting Equipment from Sales and Use 
Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator BURNS of Washington. 
Cosponsored by Representative CAMPBELL of Orrington and 
Senators: DAVIS of Piscataquis, ROSEN of Hancock, WHITTEMORE of Somerset, 
Representatives: GUERIN of Glenburn, MAKER of Calais, MOONEN of Portland, SHORT of 
Pittsfield, TUELL of East Machias. 
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 off-road use in commercial wood harvesting or commercial 
construction equipment 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, commercial 
construction 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 
or for commercial wood harvesting or commercial construction equipment 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 off-road use in 
commercial wood harvesting or commercial construction equipment 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, commercial construction or commercial 
wood harvesting and authorizing the purchaser to purchase electricity, fuel for a 
commercial fishing vessel or for off-road use in commercial wood harvesting or 
commercial construction equipment 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 off-road use in commercial wood harvesting or commercial construction equipment or 
depreciable machinery or equipment must be used directly in commercial agricultural 
production, commercial fishing, commercial aquacultural production, commercial 
construction or commercial wood harvesting.  In order to qualify for this exemption, the 
electricity or fuel for a commercial fishing vessel or for off-road use in commercial wood 
harvesting or commercial construction equipment must be used in qualifying activities, 
including support operations. 
SUMMARY 
This bill provides a sales and use tax refund or exemption for fuel purchased for off-
road use in commercial wood harvesting or commercial construction equipment.