Sec. 1. 36 MRSA §1760, sub-§80 is enacted to read:

80.__Digital broadcast equipment.__Sales of machinery or equipment that enables a broadcast radio or television station to originate, transmit and broadcast or to receive, transmit and rebroadcast digital signals and that was purchased on or after October 1, 1998 to facilitate compliance with the Telecommunications Act of 1996, 47 United States Code, Section 336 and the Federal Communications Commission rule, 47 Code of Federal Regulations, Section 73.624, or any other law, regulation or order mandating the broadcasting of over-the-air digital signals.__This paragraph does not exempt any of the following:

A.__Machinery or equipment purchased to repair or replace machinery or equipment for which an exemption was previously claimed and taken under this paragraph; or

B.__Any machinery or equipment purchased after the broadcast station has ceased analog broadcasting.

SUMMARY

This bill exempts from sales and use tax the initial purchase of equipment needed for digital over-the-air broadcasting. This exemption would apply only to the initial capital investments for digital broadcasting equipment, and would not apply to the purchase of repair or replacement equipment or parts once the transition to digital broadcasting has been completed.