(5) On a farm operated for profit if such service is not in the course of the employer's trade or business.

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

A. "Commercial agricultural production" means commercial production of crops for human and animal consumption, including the commercial production of sod, agricultural composting as defined in Title 17, section 2805, the commercial production of seed to be used primarily to raise crops for nourishment of humans or animals and production of livestock.

Sec. 4. Retroactivity. This Act applies retroactively to January 1, 1994. Notwithstanding the 36-month limitations on applications for refunds under the Maine Revised Statutes, Title 36, section 2013, subsection 1, the State Tax Assessor shall refund taxes paid when a person produces the evidence required under Title 36, section 2013, subsection 2 for eligible purchases relating to agricultural composting made on or after January 1, 1994.

An employer who, after January 1, 1994, has paid into the Unemployment Compensation Fund for workers engaged in agricultural composting is entitled to reimbursement for payments paid into the fund less the amount paid out of the fund for any claims against that employer by workers engaged in agricultural composting. The Commissioner of Labor shall develop a process by which a person can apply for and receive reimbursement under this section.

SUMMARY

This bill enacts a definition of "agricultural composting." It clarifies that agricultural composting operations qualify for certain sales tax exemptions. It also specifically includes work in connection with "agricultural composting" in the definition of "agricultural labor" as that term is used in Maine's unemployment compensation statutes.