An Act to Amend the Mining Excise Tax Laws
Maine Legislature, Session 131, LD 2251
Committee Amendment CA_A_H969 (House)
Amends: 36 MRSA §655, 36 MRSA §656, 36 MRSA §2013, 36 MRSA §2855, 36 MRSA §2862-A, 36 MRSA §2866

CO1\1MITTEE AMENDMENT'"A" to H.P. 1445, L.D. 2251, "An Act to Amend the 
Mining Excise Tax Laws" 
Amend the bill in section 2 in subparagraph (2) in the last line (page 1, line 6 in L.D.) 
by striking out the following: "2856-A" and inserting the following: '2856' 
Amend the bill by striking out all of section 5 and inserting the following: 
'Sec. 5. 36 MRSA §655, sub-§1, 1S, as amended by PL 2019, c. 440, §1, is 
repealed. 
Sec. 6. 36 MRSA §655, sub-§1, 1S-1 is enacted to read: 
S-1. Unextracted minerals. For purposes of this paragraph, "minerals" has the same 
meaning as in section 2855. subsection 9: 
Sec. 7. 36 MRSA §656, sub-§1, ~' as enacted by PL 1983, c. 555, §3, is repealed. 
Sec. 8. 36 MRSA §656, sub-§1, ~-1 is enacted to read: 
1-1. Unextracted minerals. For purposes of this paragraph. "minerals" has the same 
meaning as in section 2855. subsection 9. 
Sec, 9. 36 MRSA §2013, sub-§1, ~-2 is enacted to read: 
B-2. "Commercial mining" means the commercial extraction or removal of metallic 
minerals or overburden or the preparation. washing, cleaning or other treatment of 
metallic minerals and includes the bulk sampling, advanced exploration. extraction or 
beneficiation of metallic minerals within a mining area. 
"Commercial mining" does not include: 
(1) Exploration; 
(2) The physical extraction, crushing. grinding, storage or heating of calcium 
carbonate or limestone to produce cement: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 1445, L.D. 2251 
(3) The exploration for or physical extraction, crushing, grinding, sorting or 
storage of borrow, topsoil, clay or silt; or 
( 4) The exploration for or physical extraction, crushing, grinding, sorting or 
storage of gemstones, aggregate. din1ension stone or other construction materials 
from a quarry. 
As used in this paragraph, "advanced exploration," "beneficiation." "exploration" and 
"metallic mineral" have the same meanings as in Title 38, section 490-MM:. 
Sec. 10. 36 MRSA §2013, sub-§1, ~C, as amended by PL 2019, c. 7, §2, is further 
amended to read: 
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, 
maple syrup or honey, 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; ffi½4 
( 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-:-; and 
(5) New or used machinery and equipment for use directly and primarily in 
commercial mining. 
"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. 
Sec. 11. 36 MRSA §2013, sub-§2, as amended by PL 2015, c. 481, Pt. B, §1 and 
affected by §2, is further amended to read: 
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COMMITTEEAMENDMENT"A"to H.P. 1445, L.D. 2251 
2. Refund authorized. Any person, association of persons, firm or corporation that 
purchases electricity or fuel, or that purchases or leases depreciable machinery or 
equipment, for use in commercial agricultural production, commercial fishing, commercial 
aquacultural production er.,_ commercial wood harvesting or commercial mining 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 Reven1:1e Code 
that indicates that the purchaser or lessee is engaged in commercial agricultural production, 
commercial fishing, commercial aquacultural production er.,_ commercial wood harvesting 
or commercial mining 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 Intemal R-wen1:1e Code, any reimbursement of the sales tax must be 
prorated accordingly. 
In the event that electricity or fuel 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. 
Sec. 12. 36 MRSA §2013, sub-§3, as amended by PL 2015, c. 481, Pt. B, §1 and 
affected by §2, is further amended to read: 
3. Purchases made free of tax with certificate. Sales tax need not be paid on the 
purchase of electricity, fuel 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 er.,_ 
commercial wood harvesting or commercial mining and authorizing the purchaser to 
purchase electricity, fuel 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 or depreciable machinery or equipment must be used 
directly in commercial agricultural production, commercial fishing, commercial 
aquacultural production er.,_ commercial wood harvesting or commercial mining, In order 
to qualify for this exemption, the electricity or fuel must be used in qualifying activities, 
including support operations.' 
Amend the bill by inserting after section 12 the following: 
'Sec. 13. 36 MRSA §2855, sub-§8, as amended by PL 1983, c. 776, §4, is repealed.' 
Amend the bill by inserting after section 17 the following: 
'Sec, 18. 36 MRSA §2855, sub-§15, as enacted by PL 1981, c. 711, §10, is repealed 
and the following enacted in its place: 
15, Tax year. "Tax year" means an accounting period that is the same as the taxpayer's 
taxable year for federal income tax purposes.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A• to H.P. 1445, L.D. 2251 
Amend the bill in section 20 in §2856 in the first indented paragraph in the last line 
(page 2, line 22 in L.D.) by striking out the following: "0.35" and inserting the following: 
'0.05' 
Amend the bill by striking out all of section 25 and inserting the following: 
'Sec. 25. 36 MRSA §2862-A is enacted to read: 
§2862-A. Distribution of revenues 
Revenue from the excise tax imposed pursuant to this chapter must be distributed as 
follows: 
1. Mining Excise Tax Trust Fund. Seventy-five percent of the revenue must be 
deposited in the Mining Excise Tax Trust Fund established in Title 5, section 452. Such 
revenue is subject to the provisions of the Constitution of Maine, Article IX, Section 20: 
and 
2. General Fund. Twenty-five percent must be deposited in the General Fund.' 
Amend the bill by striking out all of section 28 and inserting the following: 
'Sec. 28. 36 MRSA §2866, as amended by PL 2011, c. 653, §6 and affected by §33 
and amended by c. 682, §38, is repealed. 
Sec. 29. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides one-time funding for computer programming, testing and 
implementation of changes to mining excise taxes. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2023-24 
$0 
$0 
2024-25 
$157,380 
$157,380 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment makes the following changes to the bill. 
1. It removes the sales tax exemption for products used in commercial mining and 
instead provides for the refund of sales tax on depreciable machinery and equipment 
purchases in the Maine Revised Statutes, Title 36, section 2013. 
2. It exempts unextracted minerals from the property tax. 
3. It repeals the definition of "mineral products." 
4. It requires that 75% of mining excise tax revenues be deposited in the Mining Excise 
Tax Trust Fund and 25% be deposited in the General Fund and specifies that revenue 
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COMMITTEE AMENDMENT" A/ to H.P. 1445, L.D. 2251 
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deposited in the Mining Excise Tax Trust Fund is subject to the Constitution of Maine, 
Article IX, Section 20, which requires expenditures from that fund to be approved by a 2/3 
vote of the Legislature and by the Governor. 
5. It clarifies the defmition of "tax year" for mining excise tax accounting purposes. 
6. It changes the annual mining excise tax rate from 3 5%, as in the bill, to 5%. 
7. It corrects a cross-reference. 
8. It repeals the Mining Oversight Fund. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/01/24 Mae! 
LD 2251 
LR3119(02) 
An Act to Amend the Mining Excise Tax Laws 
Fiscal Note for Bill as Amended by Committee Amendment'~' ( H- - 9 Cci ~ \ 
Committee: Taxation 
') 
Fiscal Note Required: Yes 
Fiscal Note 
Potential cutTent biennium revenue decrease - General Fund 
Potential current biennium revenue decrease - Other Special Revenue Funds 
Potential future biennium revenue increase - General Fund 
Potential future biennium revenue increase - Other Trust Funds 
Projections 
FY2023-24 
FY 2024-25 
FY 2025-26 
Projections 
FY2026-27 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
$0 
$0 
$157,380 
$0 
$0 
$157,380 
$0 
$0 
This bill makes changes to the mining excise tax and distribution of mining excise tax revenue and provides a sales 
tax exemption for products used in commercial mining. The Department of Administrative and Financial Services, 
Bureau of Revenue Services has indicated that the timing and magnitude of the revenue impacts of these changes are 
uncertain. The changes to the mining excise tax may increase revenue to the General Fund and the Mining Excise 
Tax Trust Fund beginning in fiscal year 2025-26, depending on how long it takes to approve new mining projects. 
The sales tax exemption may decrease General Fund and Local Government Fund revenue beginning in fiscal year 
2024-25. This fiscal note does not reflect revenue changes to these funds. 
The bill includes a one-time General Fund appropriation to the Department of Administrative and Financial Services, 
Bureau of Revenue Services in fiscal year 2024-25 for computer programming, testing and implementation costs 
associated with changes to the mining excise tax and the sales tax exemption. 
LR3119(02) - Fiscal Note - Page 1 of 1