An Act to Amend the Laws Regarding the Mining Excise Tax
Maine Legislature, Session 132, LD 0936
Sponsors: HASENFUS
Amends: 14 MRSA §6662, 36 MRSA §271, 36 MRSA §603, 36 MRSA §655, 36 MRSA §656, 36 MRSA §2013, 36 MRSA §2854, 36 MRSA §2855, 36 MRSA §2856, 36 MRSA §2857, 36 MRSA §2858, 36 MRSA §2861, 36 MRSA §2862, 36 MRSA §2862-A, 36 MRSA §2863, 36 MRSA §2865, 36 MRSA §2866

Legislative Document
No. 936
H.P. 601
House of Representatives, March 11, 2025
An Act to Amend the Laws Regarding the Mining Excise Tax
Received by the Clerk of the House on March 5, 2025.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative HASENFUS of Readfield.
Cosponsored by Representatives: CROCKETT of Portland, LAVIGNE of Berwick, QUINT of 
Hodgdon.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  1 MRSA c. 31, as amended, is repealed.
Sec. 2.  14 MRSA §6662, sub-§1, ¶C, as enacted by PL 1983, c. 189, is amended 
by amending subparagraph (2) to read:
(2)  Payment of any the excise tax under Title 36, sections 2851 to 2865 section 
2856;
Sec. 3.  36 MRSA §271, sub-§2, ¶A, as amended by PL 2019, c. 401, Pt. A, §4, is 
further amended by repealing subparagraph (6).
Sec. 4.  36 MRSA §271, sub-§10, ¶A, as enacted by PL 2009, c. 571, Pt. WWW, 
§7, is amended to read:
A.  The filing fee for a petition for an appeal of current use valuation under the tree 
growth tax law, chapter 105, subchapter 2‑A, the farm and open space tax law, chapter 
105, subchapter 10, or the working waterfront land law, chapter 105, subchapter 10‑A 
or a petition for an appeal relating to section 2865 is $75.
Sec. 5.  36 MRSA §603, sub-§10, as amended by PL 1983, c. 776, §2, is further 
amended to read:
10.  Tax situs.  The tax situs of tangible personal property shall be is at the mine mining 
site if that property is:
A.  Owned, leased or otherwise subject to possessory control of a mining company; 
and
B.  On route to or from, being transported to or from or destined to or from a mine 
mining site.
Except as otherwise provided in this subsection, the tax situs of tangible personal property 
leased to a mining company shall be is in the place where the property is situated.
For the purposes of this subsection, the definitions of section 2855 shall apply.
Sec. 6.  36 MRSA §655, sub-§1, ¶S, as amended by PL 2019, c. 440, §1, is repealed.
Sec. 7.  36 MRSA §655, sub-§1, ¶S-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. 8.  36 MRSA §656, sub-§1, ¶I, as enacted by PL 1983, c. 555, §3, is repealed.
Sec. 9.  36 MRSA §656, sub-§1, ¶I-1 is enacted to read:
I-1.  Unextracted minerals. For purposes of this paragraph, "minerals" has the same 
meaning as in section 2855, subsection 9.
Sec. 10.  36 MRSA §2013, sub-§1, ¶B-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;
(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, dimension stone or other construction materials 
from a quarry.
As used in this paragraph, "advanced exploration," "beneficiation," "cement," 
"exploration" and "metallic mineral" have the same meanings as in Title 38, section 
490-MM.
Sec. 11.  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; 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.; 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. 12.  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, commercial 
aquacultural production or, commercial wood harvesting or commercial mining must be 
refunded the amount of sales tax paid upon presenting to the State Tax Assessor 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 
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 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. 13.  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 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 or, 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.
Sec. 14.  36 MRSA §2854, as enacted by PL 1981, c. 711, §10, is repealed and the 
following enacted in its place:
§2854.  Excise tax
An annual excise tax is imposed on a mining company for the privilege of conducting 
mining in the State and is in addition to any other tax imposed by this Title.
Sec. 15.  36 MRSA §2855, sub-§2, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 16.  36 MRSA §2855, sub-§3, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 17.  36 MRSA §2855, sub-§4, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 18.  36 MRSA §2855, sub-§5, as enacted by PL 1981, c. 711, §10, is amended 
to read:
5.  Gross proceeds.  "Gross proceeds" means a mining company's federal gross income 
from mining with respect to a mine site, as defined in Section 613 of the code Code, in the 
State.
Sec. 19.  36 MRSA §2855, sub-§6, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 20.  36 MRSA §2855, sub-§7, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 21.  36 MRSA §2855, sub-§8, as amended by PL 1983, c. 776, §4, is repealed.
Sec. 22.  36 MRSA §2855, sub-§9, as enacted by PL 1981, c. 711, §10, is amended 
to read:
9.  Minerals.  "Minerals" means all naturally-occurring naturally occurring metallic 
minerals as defined in Title 38, section 490-MM, subsection 8.
Sec. 23.  36 MRSA §2855, sub-§10, as enacted by PL 1981, c. 711, §10, is repealed 
and the following enacted in its place:
10.  Mining.  "Mining" has the same meaning as in Title 38, section 490-MM, 
subsection 11, except that activity described in Title 38, section 490-MM, subsection 11, 
paragraph D is mining regardless of any exclusion by the Department of Environmental 
Protection pursuant to Title 38, section 490-NN, subsection 4.
Sec. 24.  36 MRSA §2855, sub-§12, as amended by PL 1983, c. 776, §5, is repealed.
Sec. 25.  36 MRSA §2855, sub-§13, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 26.  36 MRSA §2855, sub-§14, as amended by PL 1993, c. 395, §18, is 
repealed.
Sec. 27.  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.
Sec. 28.  36 MRSA §2855, sub-§16, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 29.  36 MRSA §2855, sub-§17, as enacted by PL 1981, c. 711, §10, is repealed.
Sec. 30.  36 MRSA §2856, as corrected by RR 2013, c. 2, §45, is repealed and the 
following enacted in its place:
§2856.  Amount of annual excise tax
The amount of the annual excise tax on a mining company is the mining company's 
gross proceeds multiplied by 0.05.
Sec. 31.  36 MRSA §2857, as enacted by PL 1981, c. 711, §10, is amended to read:
§2857.  Returns
1.  Annual return.  A mining company shall file, on or before the date the mining 
company's state income tax return is due to be filed, an annual return on a form specified 
by the State Tax Assessor assessor for each tax year.
2.  Form and contents.  The return shall must indicate:
A.  The tax due;
B.  The estimated tax payments made; and
C.  Credits provided under section 2858; and
D.  Information relating to the value of facilities and equipment, gross proceeds, net 
proceeds or other relevant information as the State Tax Assessor assessor may by rule 
require.
3.  Payments.  A mining company shall pay the tax due, less estimated tax payments 
and credits, at the time its annual return is due without extensions.
4.  Extensions.  The State Tax Assessor assessor may grant a reasonable extension of 
time for filing a return, declaration, statement or other document or payment of tax or 
estimated tax required by this chapter on such terms and conditions as he the assessor may 
require.  The extension may not exceed 8 months.
5.  Computation.  In computing a mining company's tax, gross proceeds and net 
proceeds shall be computed as if each mine site were a separate taxpayer. The State Tax 
Assessor assessor may distribute, apportion or allocate on a reasonable basis gross 
proceeds, deductions, credits or allowances between or among mining companies or mine 
sites, if such distribution, apportionment or allocation is necessary to prevent evasion of 
taxes imposed by this chapter, or to reflect clearly the gross or net proceeds of any mining 
company or mine site.
Sec. 32.  36 MRSA §2858, as amended by PL 1987, c. 772, §26, is repealed.
Sec. 33.  36 MRSA §2861, as amended by PL 2011, c. 653, §4 and affected by §33 
and amended by c. 682, §38, is repealed.
Sec. 34.  36 MRSA §2862, as amended by PL 2011, c. 653, §5 and affected by §33, 
is repealed.
Sec. 35.  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.  The 
revenue deposited in the Mining Excise Tax Trust Fund is subject to the provisions of the 
Constitution of Maine, Article IX, Section 20; and
2.  General Fund.  Twenty-five percent of the revenue must be deposited in the 
General Fund.
Sec. 36.  36 MRSA §2863, as amended by PL 2017, c. 211, Pt. E, §7, is repealed.
Sec. 37.  36 MRSA §2865, as amended by PL 2007, c. 627, §76, is repealed.
Sec. 38.  36 MRSA §2866, as amended by PL 2011, c. 653, §6 and affected by §33 
and amended by c. 682, §38, is repealed.
Sec. 39.  Application. This Act applies to tax years beginning on or after January 1, 
2026, except that those sections of this Act that enact the Maine Revised Statutes, Title 36, 
section 2013, subsection 1, paragraph B-2 and amend Title 36, section 2013, subsection 1, 
paragraph C and subsections 2 and 3 apply to purchases made on or after January 1, 2026.
SUMMARY
In Resolve 2023, chapter 83, the Department of Administrative and Financial Services, 
Bureau of Revenue Services, Office of Tax Policy was required to review the State's 
taxation of metallic mineral mining and submit a report to the Joint Standing Committee 
on Taxation in the Second Regular Session of the 131st Legislature.  
1.  This bill implements the changes proposed in the legislation accompanying the 
report, including providing for the refund of sales tax on depreciable machinery and 
equipment purchases and also:
A. Exempting unextracted minerals from the property tax;
B.  Simplifying the excise tax imposed on a mining company by establishing a formula 
of the gross proceeds of that mining company multiplied by 0.05; repealing the 
definition of "mineral products" and other definitions no longer needed; clarifying the 
definition of "tax year" for purposes of the mining excise tax; incorporating various 
administrative provisions; and eliminating credits for payment of certain property taxes 
and prepayment of taxes; and 
C.  Eliminating the Mining Impact Assistance Fund and related provisions. The fund 
is used to provide grants to municipalities, counties and the unorganized territory to 
offset the loss of property tax revenue and to provide necessary new or additional 
public facilities and services related to mining.
2.  The bill also makes the following changes not included in the Office of Tax Policy's 
original report:
A. It clarifies the imposition and calculation of the mining excise tax; and
B.  It eliminates the Mining Oversight Fund and requires that, of the mining excise tax 
revenue, 75% is deposited in the Mining Excise Tax Trust Fund and 25% is deposited 
in the General Fund.