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An Act To Remove the Sales Tax on Watercraft
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §1760, sub-§25, as amended by PL 2007, c. 438, §39, is further amended to read:
 
25. Watercraft. Sales of watercraft to a person that is not a resident of this State, when the watercraft is intended to be sailed or transported outside the State immediately upon delivery by the seller; sales to a person that is not a resident of this State, under contractscontract for the construction of a watercraft intended to be sailed or transported outside the State immediately upon delivery by the seller, of materials to be incorporated in the watercraft; and sales to a person that is not a resident of this State for the repair, alteration, refitting, reconstruction, overhaul or restoration of a watercraft intended to be sailed or transported outside the State immediately upon delivery by the seller, of materials to be incorporated in the watercraft. Unless the watercraft is present in the State, for a purpose other than temporary storage, for more than 30 days during the 12-month period following its date of purchase or is registered in Maine without also being registered in another state or documented with a location in this State, within 12 months of the date of purchase, the purchaser is exempt from the use tax.
 
SUMMARY
Current law exempts from tax the sale of watercraft, the sale of materials for watercraft construction and the sale of materials for watercraft repair, alteration, refitting, reconstruction, overhaul and restoration only if the sale is made to a nonresident and the watercraft is intended to be transported outside the State. This bill amends the law to extend the sales tax exemption to all persons and without regard to whether the watercraft will remain in the State.