Sec. 21. 36 MRSA §5311, sub-§3, as enacted by P&SL 1969, c. 154, §F, is repealed.

Sec. 22. 36 MRSA §5311, sub-§4, as enacted by PL 1977, c. 165, §7, is repealed.

SUMMARY

This bill makes the following changes to the laws governing taxation.

The bill clarifies that the Department of Administrative and Financial Services, Bureau of Revenue Services must preserve electronically transmitted tax returns for at least 3 years, and that returns may be preserved in the form of digital images rather than microfilm reproductions.

The bill adds definitions of "rural community health center" and "school" to the sales and use tax law, repeals language that is definitional in nature from the statute exempting these types of entities and repeals cross-references to the repealed language.

The bill clarifies that the sales tax exemption for sales to contractors of materials that will be incorporated into real estate of an exempt entity includes sales to subcontractors.

The bill replaces outdated references to federal laws and regulations governing air carriers from the sales tax exemption for parts used by scheduled airlines. The existing statute refers to regulations of the Civil Aeronautics Board, which no longer exists, and cites a federal law that has been repealed.

The bill clarifies the application of the exemption provisions in the gasoline tax law.

The bill expands the special fuel tax exemption for kerosene delivered to a separate tank for retail sale to include kerosene prepackaged for home use. The Bureau of Revenue Services is currently applying this interpretation administratively.