An Act To Clarify the Sales Tax Exemption for Vehicles Used in Interstate or Foreign Commerce
Maine Legislature, Session 128, LD 1734
Committee Amendment CA_A_S438 (Senate)
Amends: 36 MRSA §1760

COMMITTEE AMENDMENT "ft " to S.P. 633, L.D. 1734, Bill, "An Act To 
Clarify the Sales Tax Exemption for Vehicles Used in Interstate or Foreign Commerce" 
Amend the bill by striking out all of sections 2 and 3 and inserting the following: 
'Sec. 2. 36 MRSA §1760, sub-§41-A is enacted to read: 
41-A. Certain instrumentalities of interstate or foreign commerce. The sale of a 
vehicle, railroad rolling stock, aircraft or watercraft that is placed in use by the purchaser 
as an instrumentality of interstate or foreign commerce within 30 days after that sale and 
that is used by the purchaser for not less than 80% of the days in use during the next 2 
years as an instrumentality of interstate or foreign commerce. The State Tax Assessor 
may for good cause extend for not more than 60 days the time for placing the 
instrumentality in use in interstate or foreign commerce. 
For purposes of this subsection: 
A. Property is placed in use as an instrumentality of interstate or foreign commerce 
by its carrying of or providing the motive power for the carrying of a bona fide 
payload in interstate or foreign commerce or by being dispatched to a specific 
location at which it will be loaded with, or will be used as motive power for the 
carrying of, a bona fide payload in interstate or foreign commerce. 
( 1) Property dispatched for the carrying of or providing the motive power for the 
carrying of a bona fide payload in interstate or foreign commerce is considered in 
use from the date of dispatch through the date the property arrives back at its 
principal place of business or is dispatched for the carrying of or providing the 
motive power for the carrying of a new bona fide payload, whichever occurs first. 
Any day or portion of a day in which an instrumentality is used in interstate or 
foreign commerce is computed as a full day of use in interstate or foreign 
commerce. 
Property dispatched for the carrying of or providing the motive 
power for the carrying of a bona fide payload in intrastate commerce is 
considered in use from the date of dispatch through the date the property arrives 
back at its principal place of business or is dispatched for the carrying of or 
providing the motive power for the carrying of a new bona fide payload, 
Page I - 128LR2587(02)-1 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"A "to S.P. 633, L.D. 1734 
whichever occurs first. 
For purposes of this subparagraph, use of a trailer, 
semitrailer or tow dolly, as defined in Title 29-A, section 101, pursuant to a 
written interchange agreement as described in 49 Code of Federal Regulations, 
Section 376.31, or successor regulation, between the purchaser and an authorized 
motor carrier is considered use by the purchaser. 
(2) 
For purposes of this subsection, personal property is not in use as an 
instrumentality of interstate or foreign commerce when canying a bona fide 
payload that both originates and terminates within the State, unless the personal 
property is a bus with a capacity of at least 4 7 passengers that is engaged in 
transpotiing within the State a bona fide payload of travelers on an interstate or 
foreign cruise that originates outside the State and terminates outside the State 
and the transportation is provided pursuant to a contract between the interstate or 
foreign cruise provider and the person providing the transportation. 
(3) Any day in which an instrumentality is not used in intrastate commerce or 
interstate or foreign commerce, including while being repaired or maintained, is 
not counted in the 80% computation; and 
B. As used in this subsection, unless the context otherwise indicates, the following 
terms have the following meanings. 
(1) "Bona fide payload" means a cargo of persons or property transported by a 
contract carrier or common cmrier for compensation that exceeds the direct cost 
of canying that cargo or pursuant to a legal obligation to provide service as a 
public utility or a cargo of property transported in the reasonable conduct of the 
purchaser's own nontransportation business in interstate or foreign commerce. 
(2) "Dispatch" means to send to a destination for the purpose of interstate or 
foreign commerce or for the purpose of intrastate commerce. 
The exemption provided by this subsection is not limited to instrumentalities otherwise 
required to be exempt under the United States Constitution. 
Sec. 3. 
Retroactivity. 
Notwithstanding the Maine Revised Statutes, Title 1, 
section 302, this Act applies to purchases made on or after January 1, 2012.
SUMMARY 
This amendment clarifies the calculation of the period during which property eligible 
for the sales tax exemption is placed in interstate or foreign commerce or intrastate 
commerce. The amendment provides that a trailer, semitrailer or tow dolly being used by 
an entity other than the owner is eligible for the exemption as long as there is a written 
interchange agreement between the owner and the other entity and the transportation 
being provided is interstate in nature. The amendment adds a definition of "dispatch." 
The amendment also provides that the changes made in the bill apply retroactively to 
purchases made on or after January 1, 2012. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 04/02/18 ::Wac:. 
LD 1734 
LR 2587(02) 
An Act To Clarify the Sales Tax Exemption for Vehicles Used in Interstate or Foreign Commerce 
Fiscal Note for Bill as Amended by Committee Amendment ',,._" ( S- Y ?i\ 
Committee: Taxation 
:J 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
$0 
$0 
$0 
FY 2018-19 
$1,764,000 
($1,764,000) 
($36,000) 
Projections 
FY 2019-20 
$855,000 
($855,000) 
($45,000) 
Projections 
FY 2020-21 
$855,000 
($855,000) 
($45,000) 
The bill expands a sales tax exemption for property placed in interstate commerce or intrastate commerce and would 
result in a reduction in General Fund revenue of $1,764,000 and Local Government Fund revenue of $36,000 in fiscal 
year 2018-19. 
LR2587(02) - Fiscal Note - Page 1 of 1