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: Taxation
Sponsors: DAVIS, BLACK, DIAMOND, KATZ, WHITTEMORE, LOCKMAN, SIROCKI, TIMBERLAKE, VACHON
Amends: 36 MRSA §2013

Legislative Document 
No. 1481 
S.P. 579 
In Senate, December 18, 2015 
An Act To Protect Maine's Natural Resources Jobs by Exempting 
from Sales Tax Petroleum Products Used in Commercial Farming, 
Fishing and Forestry 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 18, 2015.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator DAVIS of Piscataquis. 
Cosponsored by Representative BLACK of Wilton and 
Senators: DIAMOND of Cumberland, KATZ of Kennebec, WHITTEMORE of Somerset, 
Representatives: LOCKMAN of Amherst, McCABE of Skowhegan, SIROCKI of 
Scarborough, TIMBERLAKE of Turner, VACHON of Scarborough. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §2013, as corrected by RR 2011, c. 2, §41 and amended by PL 
2011, c. 657, Pt. N, §2 and affected by §3, is further amended to read: 
§2013.  Refund of sales tax on depreciable machinery and equipment purchases and 
petroleum products 
1.  Definitions. As used in this section, unless the context otherwise indicates, the 
following words have the following meanings. 
A.  "Commercial agricultural production" means commercial production of crops, 
plants, trees, compost and livestock. 
A-1.    "Commercial aquacultural production" means the commercial production of 
cultured fish, shellfish, seaweed or other marine plants for human and animal 
consumption, including: 
 (1)  All cultivating activities occurring at hatcheries or nurseries, from the egg, 
larval or spore stages to the transfer of the product to a growing site; and 
 (2)  All cultivating activities occurring on water, from the receipt of fish, 
shellfish, seaweed or other marine plants from onshore facilities to the delivery of 
harvested products to onshore facilities for processing. 
B.    "Commercial fishing" means attempting to catch fish or any other marine 
animals or organisms with the intent of disposing of them for profit or trade in 
commercial channels and does not include subsistence fishing for personal use, sport 
fishing or charter boat fishing where the vessel is used for carrying sport anglers to 
available fishing grounds. 
B-1.  "Commercial wood harvesting" means the commercial severance and yarding of 
trees for sale or for processing into logs, pulpwood, bolt wood, wood chips, stud 
wood, poles, pilings, biomass or fuel wood or other products commonly known as 
forest products. 
C.  "Depreciable  machinery and equipment" means, except as otherwise provided by 
this paragraph, that part of the following machinery and equipment for which 
depreciation is allowable under the Code and repair parts for that machinery and 
equipment: 
(1)  New or used machinery and equipment for use directly and primarily in 
commercial 
agricultural 
production, 
including 
self-propelled 
vehicles; 
attachments and equipment for the production of field and orchard crops; new or 
used machinery and equipment for use directly and primarily in production of 
milk, animal husbandry and production of livestock, including poultry; new or 
used machinery and equipment used in the removal and storage of manure; and 
new or used machinery and equipment not used directly and primarily in 
commercial agricultural production, but used to transport potatoes from a truck 
into a storage location; 
(2)  New or used watercraft, nets, traps, cables, tackle and related equipment 
necessary to and used directly and primarily in commercial fishing;  
(3)  New or used watercraft, machinery or equipment used directly and primarily 
for commercial aquacultural production, including, but not limited to: nets; ropes; 
cables; anchors and anchor weights; shackles and other hardware; buoys; fish 
tanks; fish totes; oxygen tanks; pumping systems; generators; water-heating 
systems; boilers and related pumping systems; diving equipment; feeders and 
related equipment; power-generating equipment; tank water-level sensors; 
aboveground piping; water-oxygenating systems; fish-grading equipment; safety 
equipment; and sea cage systems, including walkways and frames, lights, netting, 
buoys, shackles, ropes, cables, anchors and anchor weights; and 
(4)  New or used machinery and equipment for use directly and primarily in 
commercial wood harvesting, including, but not limited to, chain saws, skidders, 
delimbers, forwarders, slashers, feller bunchers and wood chippers. 
"Depreciable machinery and equipment" does not include a motor vehicle as defined 
in section 1752, subsection 7 or a trailer as defined in section 1752, subsection 19-A. 
D.  "Petroleum products" means any substance or combination of substances that is 
intended to be or is capable of being used for the purpose of propelling or running by 
combustion any internal combustion engine that is sold or used for that purpose and 
includes fuel and any lubricating oil or other lubricant that is classified for use in an 
internal combustion engine or the transmission, gear box, hydraulic system, 
compressor or differential for a motor vehicle or vessel, including but not limited to 
natural, synthetic and rerefined motor oils, whether or not in retail containers. 
2.  Refund authorized.  Any person, association of persons, firm or corporation that 
purchases electricity, or that purchases or leases depreciable machinery or equipment, or 
that purchases petroleum products, 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 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 
petroleum products 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 a single item of machinery 
or equipment or petroleum products 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 
petroleum products 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 petroleum 
products 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 petroleum products must be used in qualifying 
activities, including support operations. 
4.  Information on processes for refunds and appeals.  The assessor shall post 
information describing the process for requesting a refund under this section on the 
bureau’s publicly accessible website along with a description of the process to appeal a 
denial of refund request. 
SUMMARY 
Current law exempts from sales tax depreciable machinery or equipment used in 
commercial agricultural production, commercial fishing, commercial aquacultural 
production or commercial wood harvesting; fuel used in commercial fishing is also 
exempt from sales tax.  A person seeking the exemption may apply for a refund of the 
sales tax paid or obtain an exemption at the point of sale. 
This bill exempts from sales tax all petroleum products used in commercial 
agricultural production, commercial fishing, commercial aquacultural production or 
commercial wood harvesting.  "Petroleum products" is defined as any substance or 
combination of substances that is intended to be or is capable of being used for the 
purpose of propelling or running by combustion any internal combustion engine that is 
sold or used for that purpose and includes fuel and any lubricating oil or other lubricant 
that is classified for use in an internal combustion engine or the transmission, gear box, 
hydraulic system, compressor or differential for a motor vehicle or vessel.