An Act To Clarify the Taxable Status of Parts Provided under a Service Contract
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §1760, sub-§31-A is enacted to read:
31-A. Machinery and equipment repair parts.
Parts provided to a nonprofit entity for the repair of machinery and equipment pursuant to a service contract.
SUMMARY
This bill clarifies that parts provided to a nonprofit entity for the repair of equipment pursuant to a service contract are exempt from sales tax.