Maine – Exemption for Commercial Uses of Electricity

SALT Report 1859 – Maine Revenue Services updated their fuels and utilities publication to include a new exemption for certain commercial uses of electricity.

36 MRSA § 2013 provides that “electricity used by commercial farmers, commercial fishermen and commercial aqua-culture businesses in their respective commercial activities or support operations may be purchased exempt from sales tax.”

The statute defines “support activities” as storage operations, maintenance operations, and related administrative activities. However, support activities does not include any activities conducted by a separate business, wood harvesting and/or processing activities, construction activities, reselling products procured or produced by someone else, or unrelated administrative activities.

This exemption is applied on a meter-by-meter basis. Therefore, if a single meter is used to supply electricity that will be used for both qualifying and non-qualifying activities, tax should be paid to the utility provider and the taxpayer should apply directly to Maine Revenue Services for a refund of the portion of electricity that is used in the qualifying activity.

For Further Information:

Maine Revenue Services – Instructional Bulletin #13