Form App-154 - Commercial Wood Harvesting Application Form (Page 3 of 3) in pdf

GENERAL REQUIRMENTS AND RESTRICTIONS

REQUIREMENTS

Applicant must be engaged in commercial wood harvesting. A copy of the most recent applicable tax

return and related schedules shall serve as the basis for evaluating if the purchaser is in fact engaged in commercial

wood harvesting. “Commercial wood harvesting” means the commercial severance and yarding of trees for sale or

for processing into logs, pulpwood, bolt wood, wood chips, stud wood, poles, pilings, biomass or fuel wood or other

products commonly known as forest products. 36 MRSA §2013, sub-1.B-1.

The exemption certificate can only be issued when the above information is available, first year applicants

shall not be issued an exemption certificate until such time that the appropriate schedules can be produced. Dual

purpose harvesters, meaning those who are engaged in multiple activities using similar machinery and equipment

who are not primarily (more than 50% of the time) engaged in commercial wood harvesting shall not be

issued exemption certificates.

Those qualifying for commercial wood harvesting activities, but not qualifying for an exemption card are eligible

for a sales tax refund for any sales tax paid on any qualifying depreciable machinery and equipment and electricity.

The depreciable machinery equipment, (1) must be used directly in commercial wood harvesting (2) must be used

primarily in commercial wood harvesting and (3) must be depreciable for federal income tax purposes. A refund

application available by contacting Maine Revenue Services or it can be obtain from our web site at:

RESTRICTIONS

The exemption certificate may be used to purchase depreciable machinery and equipment, including repair

parts for such machinery and equipment, used directly and primarily in commercial wood harvesting production,

exempt from tax.

The exemption certificate CAN NOT be used for the purchase of motor vehicles (including trailers, all-

terrain vehicles and snowmobiles) and attachments or accessories to motor vehicles, materials incorporated into real

property such as lumber and building supplies, consumable items, machinery and equipment not 100% depreciable

for Federal Income Tax purposes and for items not commonly used in commercial wood harvesting.

For a more complete listing of items that do or do not meet qualification requirements, please see

Instructional Bulletin 58 at:

ADDITIONAL INFORMATION

Requests for more information on specific situations should be in writing, contain full details as to the situation in

question and should be directed to:

Maine Revenue Services

Sales Tax Division

P. O. Box 1060

Augusta, Maine 04332-1060

Assistance is also available by calling (207) 624-9693 weekdays, between the hours of 8AM and 5 PM.

Phone: (207) 624-9693

Fax: (207) 287-6628

V/TTY: 7-1-1

E-mail: sales.tax@maine.gov

Form App-154 - Commercial Wood Harvesting Application Form Page 3