Sec. 1. 36 MRSA §1760, sub-§12-A, as amended by PL 1995, c. 634, §1 and affected by §2, is further amended to read:

12-A. Packaging, catalogs and shipping materials. Sales of containers, boxes, crates, bags, cores, twines, tapes, bindings, wrappings, labels, fliers, bulletins, catalogs and other packing, packaging and shipping and promotional materials to:

A. Persons engaged in the business of packing, packaging, shipping and transporting tangible personal property; or

B. Persons for use in packing, packaging or, shipping, promoting or selling tangible personal property sold by them or on which they have performed the service of cleaning, pressing, dyeing, washing, repairing or reconditioning in their regular course of business that are transferred without separate charge to the possession of the purchaser or prospective purchaser of that tangible personal property;

SUMMARY

This bill clarifies that sales catalogs and fliers are exempt from sales tax when purchased for redistribution at no charge.