Sec. 1. 36 MRSA §1752, sub-§1-H is enacted to read:

1-H.__Commercial agricultural production.__"Commercial agricultural production" means commercial production of crops and livestock for human and animal use, including the commercial production of sod, fruits, seeds, seedlings, cut flowers, herbs, nursery stock as defined in Title 7, section 2211, subsection 4, poultry, field crops, cultivated or pasture hay and farm woodlot products, including Christmas trees and maple syrup production.__ "Commercial agricultural production" includes the raising and keeping of equines and bees.

Sec. 2. 36 MRSA §1760, sub-§7, as amended by PL 1997, c. 550, §1, is further amended to read:

7. Products used in commercial agricultural and aquacultural production, and bait. Sales of seed, feed, hormones, fertilizer, pesticides, insecticides, fungicides, antibiotics, weed killers, defoliants, litter and medicines used in commercial agricultural and aquacultural production and sales of bait to commercial fishermen. Agricultural Commercial agricultural production includes the raising and keeping of equines and bees.

Sec. 3. 36 MRSA §2013, sub-§1, ķA, as amended by PL 1993, c. 151, §1, is repealed.

SUMMARY

This bill makes the following changes to the tax laws with respect to commercial agriculture.

1. It enacts a definition of "commercial agricultural production" for purposes of the laws governing sales tax.

2. It specifies that the existing sales tax exemption contained in the Maine Revised Statutes, Title 36, section 1760, subsection 7 applies to products used in commercial agricultural production.