H.P. 252 - L.D. 356
An Act Relating to the Sales Tax Treatment of Certain Rentals and Leases
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §1752, sub-§3-D is enacted to read:
3-D. Furniture. "Furniture" means the following movable items that are intended to make a room or establishment useful for human habitation.
A. "Furniture" includes:
(1) Living room furniture, including, but not limited to, sofas, love seats, loungers, recliners, chairs, end tables, coffee tables, curio cabinets, home entertainment centers, book shelves and floor and table lamps;
(2) Bedroom furniture, including, but not limited to, headboards, footboards, bed frames, mattresses, box springs, dressers, chests of drawers, mirrors, armoires, nightstands, bunk beds, roll-away beds and chests;
(3) Baby furniture, including, but not limited to, cribs, dressers and changing tables;
(4) Dining room furniture, including, but not limited to, tables, chairs, dinette sets, hutches and dry sinks;
(5) Patio and outdoor furniture, including, but not limited to, tables, chairs, umbrellas, porch swings and gliders;
(6) Office furniture including, but not limited to, desks, chairs, tables, workstations, movable partitions, shelving, file cabinets, coat racks and couches; and
(7) Home electronic devices including home appliances, home computers, televisions, stereos and radios.
B. "Furniture" does not include:
(1) Items that are affixed to real property such as sinks, toilets, built-in cabinets or light fixtures; or
(2) Furnishings such as carpeting, artwork, draperies or blinds.
Sec. 2. 36 MRSA §1752, sub-§11, ¶B, as repealed and replaced by PL 1995, c. 281, §12 and affected by §42, is amended to read:
B. "Retail sale" does not include:
(1) Any casual sale;
(2) Any sale by a personal representative in the settlement of an estate, unless the sale is made through a retailer, or unless the sale is made in the continuation or operation of a business;
(3) The sale, to a person engaged in the business of renting automobiles, of automobiles, integral parts of automobiles or accessories to automobiles, for rental or for use in an automobile rented on a short-term basis;
(4) The sale, to a person engaged in the business of renting audio or video tapes and audio or video equipment, of audio or video tapes or audio or video equipment for rental; or
(5) The sale, to a person engaged in the business of renting or leasing automobiles, of automobiles for rental or lease for one year or more.; or
(6) The sale, to a person engaged in the business of renting furniture, of furniture for rental.
Sec. 3. 36 MRSA §1752, sub-§17-A, ¶G, as amended by PL 1993, c. 701, §4, is further amended to read:
G. Rental of audio and video tapes and audio and video equipment; and
Sec. 4. 36 MRSA §1752, sub-§17-A, ¶H, as amended by PL 1995, c. 281, §14 and affected by §42, is further amended to read:
H. Rental or lease of an automobile.; and
Sec. 5. 36 MRSA §1752, sub-§17-A, ¶I is enacted to read:
I. Rental of furniture.
Sec. 6. 36 MRSA §1760, sub-§31, as amended by PL 1989, c. 501, Pt. V, §§4 and 5, is repealed and the following enacted in its place:
31. Machinery and equipment. Sales of machinery and equipment:
A. For use by the purchaser directly and primarily in either the production of tangible personal property intended to be sold or leased ultimately for final use or consumption, or in the production of tangible personal property pursuant to a contract with the United States Government or any agency thereof. This exemption applies even if the purchaser sells the machinery or equipment and leases it back in a sale and leaseback transaction. This exemption also applies whether the purchaser agrees before or after the purchase of the machinery or equipment to enter into the sale and leaseback transaction and whether the purchaser's use of the machinery or equipment in production commences before or after the sale and leaseback transaction occurs; and
B. To a bank, leasing company or other person as part of a sale and leaseback transaction, by a person that uses the machinery or equipment as described in paragraph A, whether the original purchaser's use of the machinery or equipment in production commences before or after the sale and leaseback transaction occurs.
Sec. 7. Application. The portions of this Act relating to the rental of furniture and audio equipment apply to rental-purchase agreements, as defined by the Maine Revised Statutes, Title 9-A, section 11-105, subsection 7, entered into on or after October 1, 1999. Those portions do not apply to rental-purchase agreements entered into before October 1, 1999.
Effective September 18, 1999, unless otherwise indicated.
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