Maine – Publication for Items Used in Agricultural and Aquacultural Production Updated

SALT Report 3029 – Maine Revenue Services updated a sales and use tax bulletin that addresses sales of seed, feed, fertilizer and other items used in agricultural and aquacultural production to include recent legislative changes.  Specifically, the bulletin addresses the exemption for products used in commercial agricultural production.

Under the provisions of 36 MRSA §1760(7-B) sales of seed, fertilizer, defoliants, pesticides, insecticides, fungicides, and weed killers for use in commercial agricultural production are exempt from sales and use tax.  However, sales of plant seedlings are not exempt, unless they are used in commercial forestry, or they are purchased for resale.  In addition, the exemption does not apply to sales of items that are not purchased for use in commercial agricultural production. For example, items purchased for use in a home garden or other noncommercial use, are subject to tax.

Also, the section that discusses medicines for animals has been revised to reflect that medicine includes any “substance or preparation used in the prevention, diagnosis, or treatment of disease or injury,” and includes:

  • antiseptics
  • electrolytes
  • propylene glycol
  • Banamine
  • Enrofloxin
  • Resorb
  • Calcium
  • Gentamycin
  • Silver sulfadiazine cream
  • Carbocaine
  • Keto-gel
  • Torbugesic
  • Chap-shield and Chap-guard
  • Lactated ringers
  • Vitamin B – when used to prevent metabolic disorders
  • Chlorhexidine solution
  • Metronidazole
  • CMPK gel
  • Neo/polyB/Bact Ophth ointment
  • Detomidine, and
  • Penicillin G

Finally, the sections that discussed the taxability of bait sold to commercial fisherman and silvicultural crop production have been removed from the bulletin.

For Further Information

Maine Revenue Services – Sales and Use Tax Instructional Bulletin #14