Sec. 1. 36 MRSA §1760, sub-§8, ¶D is enacted to read:

D.__Motor fuel purchased and used for the purpose of powering railroad locomotives.

Sec. 2. 36 MRSA §1760, sub-§41, as amended by PL 1999, c. 759, §3 and affected by §4, is further amended to read:

41. Certain instrumentalities of interstate or foreign commerce. The sale of a vehicle, railroad rolling stock, aircraft or watercraft that is placed in use by the purchaser as an instrumentality of interstate or foreign commerce within 30 days after that sale and that is used by the purchaser not less than 80% of the time for the next 2 years as an instrumentality of interstate or foreign commerce. The State Tax Assessor may for good cause extend for not more than 60 days the time for placing the instrumentality in use in interstate or foreign commerce. For purposes of this subsection, property is "placed in use as an instrumentality of interstate or foreign commerce" by its carrying of, or providing the motive power for the carrying of, a bona fide payload in interstate or foreign commerce, or by being dispatched to a specific location at which it will be loaded upon arrival with, or will be used as motive power for the carrying of, a payload in interstate or foreign commerce. For purposes of this subsection, "bona fide payload" means a cargo of persons or property transported by a contract or common carrier for compensation that exceeds the direct cost of carrying that cargo or pursuant to a legal obligation to provide service as a public utility or a cargo of property transported in the reasonable conduct of the purchaser's own nontransportation business in interstate commerce.

Sec. 3. 36 MRSA §1760, sub-§41-A is enacted to read:

41-A.__Certain railroad rolling stock used in interstate or foreign commerce.__The sale of:

A.__Railroad rolling stock that is placed in use by the purchaser, or by a lessee, as an instrumentality of interstate or foreign commerce within 30 days after that sale, or within 30 days after the commencement of the lease, and that is used by the purchaser or by the lessee not less than 80% of the time for the next 2 years as an instrumentality of interstate or foreign commerce.__The State Tax Assessor may for good cause extend for not more than 60 days the time for placing the instrumentality in use in interstate or foreign commerce.__For purposes of this subsection, property is "placed in use as an instrumentality