18- 125 C.M.R. ch. 318, § 2 - Qualifying and Non-qualifying Use
A.
Generally.Property is placed in use as an instrumentality of interstate
or foreign commerce (1) by its carrying of, or providing the motive power for
the carrying of, a bona fide payload in interstate or foreign commerce; or (2)
by being dispatched to a specific location at which it will be loaded with, or
will be used as the motive power for the carrying of, a bona fide payload in
interstate or foreign commerce.
B.
Leased property; equipment interchange agreements.Personal
property is not used as an instrumentality of interstate or foreign commerce by
a person who leases that property to another person who in turn uses that
property as an instrumentality of interstate of foreign commerce. However, when
a trailer, semitrailer, or tow dolly (as those terms are defined in 29-A
M.R.S§ 101 ) is used by an authorized motor carrier in interstate or
foreign commerce pursuant to, and is specifically described in, a written
interchange agreement pursuant to 49 Code of Federal Regulations, Section
376.31, or successor regulation, between that carrier and the purchaser of the
property, it is treated for purposes of the sales tax exemption as being used
by the purchaser in interstate or foreign commerce. Use of property other than
a trailer, semitrailer, or tow dolly pursuant to such an agreement does not
qualify for such treatment.
C.
Cargo originating and terminating in Maine; certain buses.Personal
property is not used as an instrumentality of interstate or foreign commerce
for the purposes of the sales tax exemption when it is carrying, providing the
motive power for carrying, or being dispatched to carry only cargo that both
originates and terminates within the State of Maine. However, the statute also
provides an exemption for certain buses. Specifically, when the personal
property in question is a bus with a capacity of at least 47 passengers that is
engaged in transporting within the State a bona fide payload of travelers on an
interstate or foreign cruise that originates outside the State and terminates
outside the State and the transportation is provided pursuant to a contract
between the interstate or foreign cruise provider and the person providing the
transportation, the bus is considered to be used in interstate or foreign
commerce for the purpose of the sales tax exemption.
Notes
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