An Act To Amend The Laws Regarding The Mining Excise Tax

132nd Legislature (2025-2026) Introduced by Tavis Hasenfus and 2 co-sponsors

The bill changes mining taxes and adds a sales tax exemption for inputs used in commercial mining, with increased excise revenue later split 75% to the Mining Excise Tax Trust Fund

Signed by Governor

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Purpose / Intent

LD 936 makes statutory changes related to Maine’s mining excise tax and associated sales tax treatment for mining activity. The stated intent is to adjust how mining activity is taxed and how revenues are allocated between state trust and general funds, while creating a sales tax exemption for certain inputs used in commercial mining.

Key provisions (summary of changes reflected in fiscal notes)

Establishes a sales tax exemption for products used in commercial mining. The exemption reduces sales tax collected on qualifying purchases by mining operators.

Modifies the mining excise tax regime or its application in a way that “may result in an increase in mining excise tax revenue.” The fiscal notes do not provide the precise statutory formula or rate change text, but indicate the net effect could raise excise receipts.

Directs the distribution of any increased mining excise tax revenue: 75% to the Mining Excise Tax Trust Fund and 25% to the General Fund (as reflected in fiscal analyses).

Note: The exact statutory language/amendments (specific formulas, definitions, or thresholds) are not provided in the fiscal-note excerpts; the above reflects the fiscal consequences described by the Legislature.

Fiscal impact

Short-term (current biennium): A potential net revenue decrease is expected primarily because the sales tax exemption is likely to take effect before any increase in excise tax revenue. The fiscal notes label the sales tax loss as “minor.”

Medium/long-term (future biennium starting FY 2026–27): Potential net increase in state revenue once changes to the excise tax take effect and generate additional receipts. Any increased excise revenue would be split 75% to the Mining Excise Tax Trust Fund and 25% to the General Fund.

Magnitude and timing: Uncertain. The fiscal notes explicitly state a more precise estimate cannot be determined at the time of analysis.

Who is affected

Commercial mining operators: benefit from sales tax exemption on qualifying products (lower operating costs).

State finances: temporary reduction in sales tax receipts; possible later increase in excise tax receipts with specified allocation between trust and general funds.

Mining Excise Tax Trust Fund: expected to receive the majority (75%) of any increased excise revenue.

Procedural/timeline notes

Referred to Taxation Committee (3/5/2025), reported Out‑to‑Pass as Amended (OTP‑AM) and adopted Committee Amendment “A” (H‑755) (6/17/2025).

Passed both chambers and sent for concurrence; placed on Special Appropriations Table pending enactment; signed by the Governor on 7/1/2025.

Fiscal notes approved/revised 6/16–6/17/2025.

Additional notes / uncertainty

The fiscal notes describe impacts but do not include exact dollar estimates or the specific statutory text changes that produce the effects. For precise operational or compliance details (definitions of “products used in commercial mining,” excise tax formula changes, effective dates), consult the final enrolled bill text and subsequent agency guidance.

Bill