An Act to Promote Equity in the Forest Products Industry by Allowing Commercial Wood Haulers to Be Eligible for Certain Sales Tax Exemptions and Refunds (AFTER DEADLINE)
Maine Legislature, Session 131, LD 2279
Committee: Agriculture, Conservation and Forestry
Sponsors: JACKSON
Amends: 36 MRSA §2013

Legislative Document
No. 2279
S.P. 994
In Senate, March 25, 2024
An Act to Promote Equity in the Forest Products Industry by 
Allowing Commercial Wood Haulers to Be Eligible for Certain Sales 
Tax Exemptions and Refunds
(AFTER DEADLINE)
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205.
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President JACKSON of Aroostook.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §2013, sub-§1, ¶B-1, as enacted by PL 2011, c. 657, Pt. N, §2 
and affected by §3, is amended to read:
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.  "Commercial wood harvesting" includes the commercial hauling of trees, 
logs, pulpwood, bolt wood, wood chips, stud wood, poles, pilings, biomass or fuel 
wood or other products commonly known as forest products to a facility that processes 
or uses trees, logs, pulpwood, bolt wood, wood chips, stud wood, poles, pilings, 
biomass or fuel wood or other products commonly known as forest products.
Sec. 2.  36 MRSA §2013, sub-§1, ¶C, as amended by PL 2019, c. 7, §2, is further 
amended by amending subparagraph (4) to read:
(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, trucks as 
defined in Title 29-A, section 101, subsection 88, truck tractors as defined in Title 
29-A, section 101, subsection 90 and trailers.
Sec. 3.  36 MRSA §2013, sub-§1, ¶C, as amended by PL 2019, c. 7, §2, is further 
amended by amending the first blocked paragraph to read:
"Depreciable Except as provided in subparagraph (4), "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. 4.  36 MRSA §2013, sub-§2, as amended by PL 2015, c. 481, Pt. B, §1 and 
affected by §2, is further amended to read:
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, or 
commercial aquacultural production or commercial wood harvesting 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.
Any person, employer or employing unit as defined in Title 26, section 1043, subsection 
that makes contributions or is eligible to receive benefits under Title 26, chapter 13, 
subchapter 7 or 6, respectively, and that purchases electricity or fuel, or that purchases or 
leases depreciable machinery or equipment, for use in commercial wood harvesting 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 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. 5.  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 or 
commercial wood harvesting 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 or 
commercial wood harvesting.  In order to qualify for this exemption, the electricity or fuel 
must be used in qualifying activities, including support operations.  In order to qualify for 
this exemption for a purchaser engaged in commercial wood harvesting, the purchaser must 
be a person, employer or employing unit as defined in Title 26, section 1043, subsection 
that makes contributions or is eligible to receive benefits under Title 26, chapter 13, 
subchapter 7 or 6, respectively.
SUMMARY
This bill provides that commercial haulers of forest products are eligible for the sales 
tax exemption for purchases of electricity, fuel and depreciable machinery and equipment, 
including trucks, truck tractors and trailers.  It also provides that to be eligible for the sales 
tax exemption for purchases of electricity, fuel and depreciable machinery and equipment 
for use in commercial wood harvesting, a person, employer or employing unit must make 
contributions or be eligible to receive benefits under the laws governing unemployment 
compensation.