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An Act To Amend the Definition of "Retail Sale" for Purposes of the Sales and Use Tax Law
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §1752, sub-§11, ¶B, as repealed and replaced by PL 2009, c. 434, §22, is amended to read:
 
B. "Retail sale" does not include:
 
(1) Any casual sale;
 
(2) Any sale by a personal representative in the settlement of an estate unless the sale is made through a retailer or the sale is made in the continuation or operation of a business;
 
(3) The sale, to a person engaged in the business of renting automobiles, of automobiles, integral parts of automobiles or accessories to automobiles, for rental or for use in an automobile rented on a short-term basis;
 
(4) The sale, to a person engaged in the business of renting video media and video equipment, of video media or video equipment for rental;
 
(5) The sale, to a person engaged in the business of renting or leasing automobiles, of automobiles for rental or lease for one year or more;
 
(6) The sale, to a person engaged in the business of providing cable or satellite television services, of associated equipment for rental or lease to subscribers in conjunction with a sale of extended cable or extended satellite television services;
 
(7) The sale, to a person engaged in the business of renting furniture or audio media and audio equipment, of furniture, audio media or audio equipment for rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 11-105;
 
(8) The sale of loaner vehicles to a new vehicle dealer licensed as such pursuant to Title 29-A, section 953;
 
(9) The sale of automobile repair parts used in the performance of repair services on an automobile that has a gross vehicle weight of 10,000 pounds or less pursuant to an extended service contract sold on or after September 20, 2007 that entitles the purchaser to specific benefits in the service of thethat automobile for a specific duration;
 
(10) The sale, to a retailer that has been issued a resale certificate pursuant to section 1754-B, subsection 2-B or 2-C, of tangible personal property for resale in the form of tangible personal property, except resale as a casual sale;
 
(11) The sale, to a retailer that has been issued a resale certificate pursuant to section 1754-B, subsection 2-B or 2-C, of a taxable service for resale, except resale as a casual sale;
 
(12) The sale, to a retailer that is not required to register under section 1754-B, of tangible personal property for resale outside the State in the form of tangible personal property, except resale as a casual sale;
 
(13) The sale, to a retailer that is not required to register under section 1754-B, of a taxable service for resale outside the State, except resale as a casual sale; or
 
(14) The sale of repair parts used in the performance of repair services on telecommunications equipment as defined in section 2551, subsection 19 pursuant to an extended service contract that entitles the purchaser to specific benefits in the service of the telecommunications equipment for a specific duration.
 
SUMMARY
Under the Sales and Use Tax Law, "retail sale" does not include the sale of automobile parts used in the performance of repair services on an automobile pursuant to an extended service contract. This bill specifies that this exclusion applies only to repair parts used in repair services on automobiles weighing 10,000 pounds or less.