Senate Republican Office
Press Release: Law Exempting Sales Tax on Petroleum Products for Natural Resources Industries Takes Effect
As of January 1, petroleum products used in commercial farming, fishing and forestry are no longer subject to the state sales tax.
In 2011, the 125th Legislature provided commercial fisherman with an exemption for fuel used in a commercial fishing vessel to make our fishing industry more competitive and protect Maine jobs. Last session, Senator Paul Davis (R-Piscataquis) sponsored LD 1481 to extend this same protection to commercial farming and forestry. The language from Senator Davis’s bill was rolled into LD 1606, a Governor’s Bill sponsored by Senator James Hamper (R-Oxford).
Prior to January 1, Maine loggers were disadvantaged in a competitive global forest products economy because of this tax break that the industry had in other states, including New Hampshire, Massachusetts and Vermont.
“Many folks in Maine make their living through agriculture, fishing and forestry. It only makes sense for the State of Maine to level the playing field, whenever possible, to keep our industries competitive, our mills running and our citizens at work,” said Sen. Davis. “The logging industry in Maine has entered into crisis status. This month alone, Maine will lose 190 additional good paying paper mill jobs. Any break we can give this group of individuals will go a long way to ensuring that this historically-important industry continues to survive.”
By lowering the tax burden that businesses pay for fuel products, more money will now be available for investment elsewhere including expanding businesses or employing more Mainers.