Sec. 1. 36 MRSA c. 919-A is enacted to read:

CHAPTER 919-A

PASSAMAQUODDY INDIAN TERRITORY

TAX-FREE ZONE

§6901.__Passamaquoddy Indian territory

1.__Exempt.__Notwithstanding any other provision of law, the Passamaquoddy Indian territory, as defined in Title 30, section 6205, constitutes a tax-free zone.__Any taxes or payments in lieu of taxes imposed under the laws of the State do not apply to any:

A.__Real property situated inside the Passamaquoddy Indian territory;

B.__Personal property ordinarily kept inside the Passamaquoddy Indian territory;

C.__Activity, event, transaction or occurrence that takes place inside the Passamaquoddy Indian territory;

D.__Income received by a person or entity that was derived directly from the natural resources of the Passamaquoddy Indian territory; or

E.__Income derived from activities conducted within the Passamaquoddy Indian territory.

2.__Use tax; exempt.__A person or entity that purchases property inside the Passamaquoddy Indian territory is exempt from the use tax on the property purchased.

3.__Taxable transaction.__Any transfer of title to real property made inside the Passamaquoddy Indian territory with respect to property located outside the Passamaquoddy Indian territory is subject to tax.

Sec. 2. Effective date; certification. This Act does not take effect unless, within 60 days after the adjournment of the Legislature, the Secretary of State receives written certification by the Joint Tribal Council of the Passamaquoddy Tribe that the tribe has agreed to the provisions of this Act pursuant to 25 United States Code, Section 1725(e)(1), copies of which must be submitted by the Secretary of State to the Secretary of the Senate and the Clerk of the House of Representatives and the