An Act To Shift Tax Burdens from Wages to Nonrenewable Power Sources
Maine Legislature, Session 121, LD 1147
Committee: Taxation
Sponsors: MILLS

12lst MAINE LEGISLATURE 
Legislative Document 
No. 1147 
H.P.850 
House of Representatives, March 4, 2003 
An Act To Shift Tax Burdens from Wages to Nonrenewable Power 
Sources 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative MILLS of Cornville. 
Printed on recycled paper 
11/~ 
1?7.11!m:~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 35-A MRS A §3203, sub-§2, 1[F, as enacted by PL 1999, c. 
398, Pt. J, §2, is amended to read: 
F. Evidence that the applicant is registered with the State 
Tax 
Assessor 
as 
a 
seller of tangible personal property 
pursuant 
to Title 
36, 
section 
l754-B, 
together with 
a 
statement that the applicant agrees to be responsible for 
the collection and remission of taxes in accordance with 
Title 36, Part 3 and Title 36, chapter 721 on all taxable 
sales of electricity made 
by the applicant to consumers 
located in this State. 
Sec. 2. 36 MRSA c. 721 is enacted to read: 
CHAPTER 721 
ELECTRIC ENERGY TAX 
§4901. Energy tax 
1. Tax imposed. 
Beginning January 1, 2004, a tax is imposed 
on the retail sale by 
a 
competitive electricity provider of 
electricity generated using coal, oil or natural gas. 
The tax is: 
A. 
Three-tenths 
of 
one 
cent 
per 
kilowatt 
hour 
on 
electricity generated using coal; 
B. 
Two-tenths of one cent per kilowatt hour on electricity 
generated using oil; and 
C. 
One-tenth of one cent per kilowatt hour on electricity 
generated using natural gas. 
• 
Def initions • 
For the purposes of this chapter, unless 
the context otherwise indicates, the following terms have the 
following meanings. 
A. 
"Competitive electricity provider" has the same meaning 
as under Title 35-A, section 3201, subsection 5. 
B. 
"Retail sale" has the same meaning as under section 
1752, subsection 11. 
§490Z. P~nt of tax: report to State Tax Assessor 
1. 
Monthly report. 
Each competitive electricity provider 
selling electricity at retail in this State shall file with the 
State Tax Assessor, by the 15th day of each month, a report that 
Page l-LR0841(1) 
states the amount of all sales subject to tax under this chapter 
made 
during 
the 
preceding 
calendar 
month 
and 
any 
other 
information the State Tax Assessor 
requires. 
The 
State Tax 
Assessor may permit the filing of returns other than monthly. 
2. Payment of tax. 
The tax imposed under this chapter must 
be paid at the same time as the report of sales is required under 
subsection 1. 
3. 
Personal Exemption Reduction Fund. 
After deducting the 
cost of administering this chapter, the State Tax Assessor shall 
deposit all revenue received under this chapter in the Personal 
Exemption Reduction Fund, which is created for the purpose of 
reducing the personal exemption provided by section 5126. 
By 
September 15th annually, the State Tax Assessor shall identify 
the amount of money in the fund and determine the amount by which 
the personal exemption can be raised, rounded to the nearest $10, 
without 
exceeding 
the 
amount 
available 
in 
the 
fund. 
The 
increased 
personal 
exemption 
determined 
under 
this 
section 
applies 
to 
tax 
years 
beginning 
in 
the 
year 
in 
which 
the 
determination is made. 
The amount in the fund that is determined 
to 
be 
necessary to increase 
the personal 
exemption must 
be 
transferred to the General Fund by September 30th annually. 
§4903. Rules 
The State Tax Assessor , 
in cQnsultation with the Public 
Utilities Commission , may adopt rules necessary to implement this 
cha:gter. 
Rules 
ago:gted pur§uant 
tQ this §ection are rQytine 
technical rules as defined in Title 
~l chapter 375 , 
§ul!chapter 
2-A. 
Sec. 3. 36 MRS A §5126, as amended by PL 2001, c. 583, §16, is 
further amended to read: 
§5l26- Personal exemptions 
For income tax years beginning on or after January 1, 1998 
but before January 1, 
1999, 
a 
resident individual is allowed 
$2,400 for each exemption that the individual properly claims for 
the taxable year for federal income tax purposes, 
unless the 
taxpayer is claimed as a dependent on another return. 
For income 
tax years beginning on or after January 1, 
1999 but before 
January 1, 2000, a resident individual is allowed $2,750 for each 
exemption that the individual properly claims for the taxable 
year for federal income tax purposes, 
unless the taxpayer is 
claimed as a dependent on another return. 
For income tax years 
beginning on or after January 1, 2000, a resident individual is 
allowed $2,850 for each exemption that the individual properly 
claims for the taxable year for federal 
income tax purposes, 
unless the taxpayer is claimed as a dependent on another return. 
For income tax years beginning on or after January 1, 2004, the 
amount of the personal exemption must be adjusted as provided by 
chapter 721. 
Sec. 4. Application. 
That section of this Act that amends the 
Maine Revised Statutes, Title 36, section 5126 applies to tax 
years beginning on or after January 1, 2004. 
SUMMARY 
This bill establishes, beginning January 1, 2004, a tax on 
the retail sale of electricity generated by the use of coal, oil 
or natural gas. 
Revenue from the tax is used to raise the amount 
of the income tax personal exemption.