Sec. 1. 36 MRSA §1752, sub-§1-H is enacted to read:

1-H.__Commercial agricultural production.__"Commercial agricultural production" means commercial production of crops and livestock for human and animal use, including, but not limited to, the commercial production of sod; fruits; seeds; all greenhouse crops and perennials; cut flowers; herbs; nursery stock as defined in Title 7, section 2211, subsection 4; poultry; field crops; cultivated or pasture hay; and farm woodlot products, including Christmas trees and maple syrup.__"Commercial agricultural production" includes the raising and keeping of equines and bees.

Sec. 2. 36 MRSA §1752, sub-§17-B, as enacted by PL 2003, c. 673, Pt. V, §19 and affected by §29, is amended to read:

17-B. Taxable service. "Taxable service" means the rental of living quarters in a hotel, rooming house, tourist or trailer camp; the transmission and distribution of electricity; the rental or lease of an automobile; and the sale of prepaid calling service; and the sale of an automobile extended warranty.

Sec. 3. 36 MRSA §1760, sub-§7, as amended by PL 1997, c. 550, §1, is further amended to read:

7. Products used in aquacultural and commercial agricultural production, and bait. Sales of seed, feed, hormones, fertilizer, pesticides, insecticides, fungicides, antibiotics, weed killers, defoliants, litter and medicines used in agricultural and aquacultural and commercial agricultural production and sales of bait to commercial fishermen. Agricultural production includes the raising and keeping of equines.

Sec. 4. 36 MRSA §2013, sub-§1, ķA, as amended by PL 1993, c. 151, §1, is repealed.

SUMMARY

This bill makes the following changes to the Sales and Use Tax Law with respect to commercial agriculture.

1. It enacts a definition of "commercial agricultural production" for purposes of the laws governing sales tax.