Sales/excise Tax Division Instructional Bulletin No. 17 - Maine Revenue Services (Page 8 of 9) in pdf

2-A. Directly. "Directly," when used in relation to production of tangible personal

property, refers to those activities or operations which constitute an integral and essential part of

production, as contrasted with and distinguished from those activities or operations which are

simply incidental, convenient or remote to production.

7-B. Machinery and equipment. "Machinery and equipment" means machinery,

equipment and parts and attachments for machinery and equipment, but excludes foundations for

machinery and equipment and special purpose buildings used to house or support machinery and

equipment.

9-A. Primarily. "Primarily," when used in relation to production, means more than 50%

of the time.

9-B. Production. "Production" means an operation or integrated series of operations

engaged in as a business or segment of a business that transforms or converts personal property

by physical, chemical or other means into a different form, composition or character from that in

which it originally existed.

"Production" includes manufacturing, processing, assembling and fabricating operations

that meet the definitional requisites, including biological processes that are part of an integrated

process of manufacturing organisms or microorganic materials through the application of

biotechnology.

"Production" does not include biological processes except as otherwise provided by this

subsection, wood harvesting operations, the severance of sand, gravel, oil, gas or other natural

resources produced or severed from the soil or water, or activities such as cooking or preparing

drinks, meals, food or food products by a retailer for retail sale. The foregoing are examples of

activities that are not included within the term "production."

11. Retail sale. "Retail sale" means any sale of tangible personal property in the ordinary course

of business for any purpose other than for resale, except resale as a casual sale, in the form of

tangible personal property. "Retail sale" also means any sale of a taxable service in the ordinary

course of business for any purpose other than for resale, except resale as a casual sale.

13. Sale. "Sale" means any transfer, exchange or barter, in any manner or by any means

whatsoever, for a consideration and includes leases and contracts payable by rental or license fees

for the right of possession and use, buy only when such leases and contracts are deemed by the

State Tax Assessor to be in lieu of purchase.

17. Tangible personal property. "Tangible personal property" means personal property

that may be seen, weighed, measured, felt, touched or in any other manner perceived by the

senses, but does not include rights and credits, insurance policies, bills of exchange, stocks and

bonds and similar evidences of indebtedness or ownership. "Tangible personal property" includes

electricity. "Tangible personal property" includes any computer software that is not a custom

computer software program. PL 1997, c. 557, Pt. B, '2 (amd); '14 (aff); Pt. G, '1 (aff).

Page 8

Sales/excise Tax Division Instructional Bulletin No. 17 - Maine Revenue Services Page 8