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IMPORTANT NOTICE
FOR THOSE ENGAGED IN THE FOREST PRODUCTS INDUSTRY

TAX REFUNDS/EXEMPTIONS ARE AVAILABLE FOR A LIMITED TIME

Three pieces of legislation were introduced this spring to provide tax relief to those engaged in the forest products industry.

LD 2225 - An Act to Provide Tax Relief to Maine’s Forest Products Industry was enacted (Chapter 658). Provides for a limited duration sales tax refund for certain parts and supplies. See below for details.

LD 2222 - Resolve, To Assist Maine's Forest Products Industry was enacted (Resolve 218). Provides for an accelerated BETR program tax reimbursement for eligible property taxes paid in 2007. Eligible taxpayers are persons engaged in the forestry and logging industry whose business code under the North American Industry Classification System is 113110, 113210 or 113310.  Email Maine Revenue Services for more information on how you can submit a claim for reimbursement  now.

LD 2228 - Resolve, To Provide a Rebate of Diesel Fuel Taxes Paid by Maine’s Forest Products Industry was NOT enacted.

The following provides an overview of the sales tax exemption passed under LD 2225 that is now in effect.

A person who is engaged directly and primarily (more than 50% of the time) in the harvest-related transport of forest products (as defined below) is eligible for a sales tax refund for parts and supplies for use in the repair and maintenance of motor vehicles and trailers that are used in transporting forest products. This refund only applies on purchases made on or after April 1, 2008 but before October 1, 2008. The refund application must be filed within 36 months of the date of purchase.

"Harvest-related transport of forest products" means the transportation of forest products from the forestland where they were harvested to their initial destination involving production or use.

“Forest products” are defined as logs, pulpwood, bolt wood, wood chips, stud wood, poles, pilings, biomass or fuel wood or other products commonly known as forest products, but does not include Christmas trees, maple syrup, nursery products used for ornamental purposes, wreaths, bough material, cones, or other seed crops.

As an alternative to the refund process, a qualifying person may apply for an exemption certificate in order to be able to purchase qualifying parts and supplies exempt from sales tax during the period of April 1, 2008 through September 30, 2008.

Please note the following:

• This refund/exemption is for a limited duration; April 1 through September 30, 2008.
• It only applies to
  • parts and supplies
    • not fuel
  • used in motor vehicles and trailers
    • not other logging equipment such as skidders and delimbers
  • that are used for hauling forest products
    • not finished goods
  • from the forest land where they were harvested to their initial destination
    • not away from their initial destination
• Motor vehicles and trailers that are used partly to haul forest products from the forest land to their initial destination and partly to haul other goods or finished goods away from their initial destination, must be used more than 50% of the time in the harvest-related transport of forest products in order to qualify for refund/exemption.
• More than 50% of the time means during the period of April 1, 2008 through September 30, 2008.
• Persons applying for refund/exemption must provide proof that they are engaged in the harvest-related transport of forest products. The most common form of proof is the person’s most recently filed Federal Income Tax return with related schedules. Other forms of proof may be considered.

Application forms for both the sales tax refund and exemption certificate can be found on our web site at http://www.maine.gov/revenue/forms/sales/salesforms.htm. For more information on the exemption certificate and the refund provision, please call (207) 624-9693 or email us at sales.tax@maine.gov.