An Act To Protect Maine's Natural Resources Jobs by Exempting from Sales Tax Petroleum Products Used in Commercial Farming, Fishing and Forestry
Sec. 1. 36 MRSA §2013, as corrected by RR 2011, c. 2, §41 and amended by PL 2011, c. 657, Pt. N, §2 and affected by §3, is further amended to read:
§ 2013. Refund of sales tax on depreciable machinery and equipment purchases and petroleum products
(1) All cultivating activities occurring at hatcheries or nurseries, from the egg, larval or spore stages to the transfer of the product to a growing site; and
(2) All cultivating activities occurring on water, from the receipt of fish, shellfish, seaweed or other marine plants from onshore facilities to the delivery of harvested products to onshore facilities for processing.
(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, 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.
"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.
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 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 for a commercial fishing vessel petroleum products 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.
summary
Current law exempts from sales tax depreciable machinery or equipment used in commercial agricultural production, commercial fishing, commercial aquacultural production or commercial wood harvesting; fuel used in commercial fishing is also exempt from sales tax. A person seeking the exemption may apply for a refund of the sales tax paid or obtain an exemption at the point of sale.
This bill exempts from sales tax all petroleum products used in commercial agricultural production, commercial fishing, commercial aquacultural production or commercial wood harvesting. "Petroleum products" is defined as any substance or combination of substances that is intended to be or is capable of being used for the purpose of propelling or running by combustion any internal combustion engine that is sold or used for that purpose and includes fuel and any lubricating oil or other lubricant that is classified for use in an internal combustion engine or the transmission, gear box, hydraulic system, compressor or differential for a motor vehicle or vessel.