An Act To Repeal the Service Provider Tax
Maine Legislature, Session 128, LD 0235
Committee: Taxation
Sponsors: BRAKEY, BELLOWS, LIBBY
Amends: 25 MRSA §2927, 30-A MRSA §5681, 35-A MRSA §7308, 36 MRSA §182, 36 MRSA §191, 36 MRSA §1752

Legislative Document
No. 235
S.P. 79
In Senate, January 24, 2017
An Act To Repeal the Service Provider Tax
Reference to the Committee on Taxation suggested and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator BRAKEY of Androscoggin.  (BY REQUEST)
Cosponsored by Senators: BELLOWS of Kennebec, LIBBY of Androscoggin.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  25 MRSA §2927, sub-§1-E, ¶C, as enacted by PL 2009, c. 400, §9 and 
affected by §15, is amended to read: 
C.  The place of residence of cellular or wireless telecommunications service 
customers who are not prepaid wireless telecommunications service consumers must 
be determined according to the sourcing rules for mobile telecommunications 
services as set forth in former Title 36, section 2556. 
Sec. 2.  30-A MRSA §5681, sub-§5, as amended by PL 2015, c. 267, Pt. K, §1, is 
further amended to read: 
5.  Transfers to funds.  No later than the 10th day of each month, the State 
Controller shall transfer to the Local Government Fund 5% of the receipts during the 
previous month from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, 
section 2552, subsection 1, paragraphs A to F and L, and credited to the General Fund 
without any reduction, except that for fiscal years 2015-16, 2016-17, 2017-18 and 2018-
the amount transferred is 2% of the receipts during the previous month from the taxes 
imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection 1, 
paragraphs A to F and L, and credited to the General Fund without any reduction, and 
except that the postage, state cost allocation program and programming costs of 
administering state-municipal revenue sharing may be paid by the Local Government 
Fund.  A percentage share of the amounts transferred to the Local Government Fund each 
month must be transferred to the Disproportionate Tax Burden Fund and distributed 
pursuant to subsection 4-B as follows: 
C.  For months beginning on or after July 1, 2009 but before July 1, 2010, 15%; 
D.  For months beginning on or after July 1, 2010 but before July 1, 2011, 16%; 
E.  For months beginning on or after July 1, 2011 but before July 1, 2012, 17%; 
F.  For months beginning on or after July 1, 2012 but before July 1, 2013, 18%; 
G.  For months beginning on or after July 1, 2013 but before July 1, 2014, 19%; and 
H.  For months beginning on or after July 1, 2014, 20%. 
Sec. 3.  35-A MRSA §7308, sub-§1, as enacted by PL 2007, c. 511, §1, is 
amended to read: 
1.  Definition. For purposes of this section, "prepaid calling service" has the same 
meaning as in Title 36, section 2551, subsection 9 means the right to access exclusively 
telecommunications services that must be paid for in advance and that enables the 
origination of calls using an access number or authorization code or both, whether 
manually or electronically dialed, and that is sold in predetermined units or dollars, the 
number of which declines with use in a known amount. 
Sec. 4.  36 MRSA §182, sub-§1, as amended by PL 2007, c. 437, §2, is further 
amended to read: 
1.  Generally.  The State Tax Assessor may, through the Attorney General, file an 
action in Superior Court applying for an order to enjoin from doing business any person 
who has: 
A.  Failed to register with the assessor when the person is required to register by any 
provision of Part 3, chapter 358 or Part 5 or by any rule adopted pursuant to this Title, 
as long as the assessor has provided written notice and the person continues to fail to 
register 15 days after receiving notice from the assessor of such failure; 
B.  Failed to file with the assessor any overdue return required by Part 3, chapter 358 
or Part 5 within 15 days after receiving notice from the assessor of such failure; 
C.  Failed to pay any tax required by Part 3, chapter 358 or Part 5 when the tax is 
shown to be due on a return filed by that person, or that is otherwise conceded by that 
person to be due, or has been determined by the assessor to be due and that 
determination has become final; 
D.  Knowingly filed a false return required by Part 3, chapter 358 or Part 5; or 
E.  Failed to deduct and withhold, or truthfully account for or pay over or make 
returns of, income taxes in violation of the provisions of chapter 827. 
Sec. 5.  36 MRSA §191, sub-§2, ¶R, as amended by PL 2005, c. 332, §6, is 
further amended to read: 
R.  The disclosure to the Department of Health and Human Services of information 
relating to the administration and collection of the taxes imposed by chapter 358, 
chapter 373, chapter 375 and chapter 377; 
Sec. 6.  36 MRSA §191, sub-§2, ¶EE, as amended by PL 2007, c. 438, §10, is 
further amended to read: 
EE.  The disclosure by the State Tax Assessor of the fact that a person has or has not 
been issued a certificate of exemption pursuant to section 1760, or 2013 or 2557, a 
provisional resale certificate pursuant to section 1754-B, subsection 2-B or a resale 
certificate pursuant to section 1754-B, subsection 2-C; 
Sec. 7.  36 MRSA §1752, sub-§11, ¶B, as amended by PL 2015, c. 390, §5, is 
further amended to read: 
B.  "Retail sale" does not include: 
(1)  Any casual sale; 
(2)  Any sale by a personal representative in the settlement of an estate unless the 
sale is made through a retailer or the sale is made in the continuation or operation 
of a business; 
(3)  The sale, to a person engaged in the business of renting automobiles, of 
automobiles, integral parts of automobiles or accessories to automobiles, for 
rental or for use in an automobile rented for a period of less than one year.  For 
the purposes of this subparagraph, "automobile" includes a pickup truck or van 
with a gross vehicle weight of less than 26,000 pounds; 
(4)  The sale, to a person engaged in the business of renting video media and 
video equipment, of video media or video equipment for rental; 
(5)  The sale, to a person engaged in the business of renting or leasing 
automobiles, of automobiles for rental or lease for one year or more; 
(6)  The sale, to a person engaged in the business of providing cable or satellite 
television services or satellite radio services, of associated equipment for rental or 
lease to subscribers in conjunction with a sale of cable or satellite television 
services or satellite radio services; 
(7)  The sale, to a person engaged in the business of renting furniture or audio 
media and audio equipment, of furniture, audio media or audio equipment for 
rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 
11-105; 
(8)  The sale of loaner vehicles to a new vehicle dealer licensed as such pursuant 
to Title 29-A, section 953; 
(9)  The sale of automobile repair parts used in the performance of repair services 
on an automobile pursuant to an extended service contract sold on or after 
September 20, 2007 that entitles the purchaser to specific benefits in the service 
of the automobile for a specific duration; 
(10)  The sale, to a retailer that has been issued a resale certificate pursuant to 
section 1754-B, subsection 2-B or 2-C, of tangible personal property for resale in 
the form of tangible personal property, except resale as a casual sale; 
(11)  The sale, to a retailer that has been issued a resale certificate pursuant to 
section 1754-B, subsection 2-B or 2-C, of a taxable service for resale, except 
resale as a casual sale; 
(12)  The sale, to a retailer that is not required to register under section 1754-B, 
of tangible personal property for resale outside the State in the form of tangible 
personal property, except resale as a casual sale; 
(13)  The sale, to a retailer that is not required to register under section 1754-B, 
of a taxable service for resale outside the State, except resale as a casual sale;  
(14)  The sale of repair parts used in the performance of repair services on 
telecommunications equipment as defined in section 2551, subsection 19 
pursuant to an extended service contract that entitles the purchaser to specific 
benefits in the service of the telecommunications equipment for a specific 
duration; 
(15)  The sale of positive airway pressure equipment and supplies for rental for 
personal use to a person engaged in the business of renting positive airway 
pressure equipment; 
(16)  The sale, to a person engaged in the business of renting or leasing motor 
homes, as defined in Title 29-A, section 101, subsection 40, or camper trailers, of 
motor homes or camper trailers for rental; or 
(17)  The sale of truck repair parts used in the performance of repair services on a 
truck pursuant to an extended service contract that entitles the purchaser to 
specific benefits in the service of the truck for a specific duration. 
Sec. 8.  36 MRSA §1752, sub-§18-E is enacted to read: 
18-E.  Telecommunications equipment.  "Telecommunications equipment" means 
any 2-way interactive communications device, system or process for transmitting or 
receiving signals and capable of exchanging audio, video, data or textual information. 
"Telecommunications equipment" includes all transmission media that are used or 
capable of being used in the provision of 2-way interactive communications, including, 
without limitation, copper wire, coaxial cable and optical fiber, except those transmission 
media designed and primarily used to transmit electricity.  "Telecommunications 
equipment" does not include computers, except those components of a computer used 
primarily and directly as a 2-way interactive communications device capable of 
exchanging audio, video, data or textual information. 
Sec. 9.  36 MRSA c. 358, as amended, is repealed. 
Sec. 10.  Effective date.  This Act takes effect October 1, 2017. 
SUMMARY 
This bill repeals the service provider tax effective October 1, 2017.