Sec. 1. 36 MRSA §198, sub-§2, ¶D, as enacted by PL 1985, c. 430, §3, is repealed.

Sec. 2. 36 MRSA §1863, as enacted by PL 1981, c. 503, is repealed.

Sec. 3. 36 MRSA §1864 is enacted to read:

§1864.__No use tax on merchandise donated to charity

A use tax may not be imposed on merchandise that a retailer or distributor donates to an organization exempt from taxation under the Code, Section 501(c)(3), as amended.

SUMMARY

This bill exempts from the use tax merchandise that a retailer or distributor donates to a nonprofit organization.