An Act Concerning Technical Changes to the Tax Laws LR 1977{02)
Maine Legislature, Session 121, LD 1571
Committee Amendment CA_A_S175 (Senate)
Amends: 36 MRSA §191, 36 MRSA §5122

COMMITTEE AMENDMENT .. A.. to S . P • 530, L. D . 
Act Concerning Technical Changes to the Tax Laws" 
1571, Bill, "An 
Amend the bill by striking out all of sections 1 to 3. 
Further amend the bill by inserting after section 7 
the 
following: 
'Sec. 8. 36 MRSA §191, sub-§3-A is enacted to read: 
3-A. 
Additional restrictions for proprietar.y information 
provided to assessor. 
Information and materials provided in 
confidence to the assessor and used by the bureau for the purpose 
of preparing legislation or legislative analysis, including the 
preparation of fiscal estimates for the Office of Fiscal and 
Program Review, are to be accorded the same confidentiality as 
established by this section for tax information.' 
Further amend the bill by inserting after section 11 the 
following: 
'Sec. 12. 36 MRS A §1760, sub-§23-C, 1IA, as enacted by PL 1999, 
c. 759, §2 and affected by §5, is amended to read: 
A. 
Motor vehicles, except automobiles rented for a period 
of less than one year, all-terrain vehicles as defined in 
Title 12, section 7851 and snowmobiles as defined in Title 
12, section 7821;' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A 
.. to S.P. 530, L.D. 1571 
Further amend the bill by striking out all of section 13. 
Further amend the bill by striking out all of sections 24 to 
26. 
Further amend the bill by inserting after section 32 the 
following: 
'Sec. 33. 36 MRSA §5122, sub-§l, 1JD, as amended by PL 1983, c. 
855, §15, is further amended to read: 
D. -.!l'.l:J.e-
For income tax years beginning before January 1, 
2002, the amount of any net operating loss in the taxable 
year whi.eh .!J:!gt has been carried back to previous years 
pursuant to the YBi.~ea-S~a~es-~B~e~Bal-ReveBae Code, Section 
172; , 
Further amend the bill by inserting after section 35 the 
following: 
'Sec. 36. 36 MRSA §5122, sub-§2, 1JH, as amended by PL 2001, c. 
559, Pt. J, §2, is further amended to read: 
H. 
For each taxable year subsequent to the year of the 
loss, an amount equal to the absolute value of the net 
operating loss arising from tax years beginning on or after 
January 1, 
1989, 
but before 
January 1, 
1993, 
and 
the 
absolute value of the amount of any net operating loss 
arising from tax years beginning on or after January 1, 
2002, for which federal adjusted gross income was increased 
in accordance 
with subsection 1, 
paragraph 
H 
and that 
pursuant to the Code, 
Section 172 was carried back for 
federal income tax purposes, less the absolute value of loss 
used in the taxable year of loss to offset any addition 
modification reguired by subsection 1, 
but only to the 
extent that: 
(1) 
Maine taxable income is not reduced below zero; 
(2) 
The taxable year is wi thin the allowable federal 
period for carry-over; and 
(3) 
The 
amount has not been previously used as a 
modification pursuant to this subsection;' 
Further amend the bill by striking out all of sections 37 
and 38. 
Further amend the bill by striking out all of section 40. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A 
.. to S.P. 530, L.D. 1571 
Further amend the bill by inserting after section 43 the 
following: 
'Sec. 44. 36 MRSA §S200-A, sub-§l, 1(B, as amended by PL 1987, 
c. 504, §18, is further amended to read: 
B. 
-~he-
For income tax years beginning before January 1, 
2002, the amount of any net operating loss in the taxable 
year whieh .th.a1. has been carried back to previous taxable 
years pursuant to the Code, Section 172;' 
Further amend the bill by striking out all of sections 49 
and 50 and inserting in their place the following: 
'Sec. 49. 36 MRSA §S200-A, sub-§2, 1(H, as amended by PL 2001, 
c. 559, Pt. J, §4, is further amended to read: 
H. 
For each taxable year subsequent to the year of the 
loss, 
an amount equal to the absolute value of the net 
operating loss arising from tax years beginning on or after 
January 1, 1989 but before January 1, 1993 and the absolute 
value of the amount of any net operating loss arising from 
tax years beginning on or after January 1, 
2002 
that, 
pursuant to the Code, Section 172, was carried back for 
federal income tax purposes, less the absolute value of loss 
used in the taxable year of loss to offset any addition 
modification required by subsection 1, 
but only to the 
extent that: 
(I) 
Maine taxable income is not reduced below zero; 
(2) 
The taxable year is within the allowable federal 
period for carry-over; and 
(3) 
The 
amount has not been previously used as 
a 
modification pursuant to this subsection; 
Sec. SO. 36 MRSA §S200-A, sub-§2, 1(J, as amended by PL 2001, c. 
559, Pt. GG, §16 and affected by §26, is further amended to read: 
J. 
An amount equal to an income tax refund to the taxpayer 
by this State or another state of the United States that is 
included in that taxpayer's federal taxable income for the 
taxable year under the Code, but only to the extent that: 
(1) Maine net income is not reduced below zero; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 
(2) 
The 
another 
s.p. 530, L.D. 1571 
amount to be 
state 
of 
the 
refunded from 
United 
States 
this 
has 
State or 
not 
been 
previously used as 
a modification pursuant to this 
subsection. 
If this modification affieaB~ results in Maine net income that 
is less than zero for the taxable year, the excess negative 
modification amount may be carried saeJr-er forward in the 
same manner as a net operating loss deduction ea!'Fy-sae~-eF 
ea!'!'y-~e!'warQ to a taxable year that is within the allowable 
federal period for 
a--Gai:'-r~-~--ea!'!'y-~e!'wa!,Q carrying 
forward 
net 
operating 
losses, 
subject 
to 
the 
above 
limitations;' 
Further amend the bill by striking out all of section 57. 
Further amend the bill by inserting after section 58 the 
following: 
'Sec. 59. Application. 
Those sections of this Act that amend 
the Maine Revised Statutes, Title 36, section 5122, subsection 1, 
paragraph D and subsection 2, paragraph H and section 5200-11., 
subsection 1, paragraph B and subsection 2, paragraphs Hand J 
apply to tax years beginning on or after January 1, 2002.' 
Further amend the 
nonconsecutive 
consecutively. 
Part 
bill by relettering 
letter 
or 
section 
or renumbering any 
number 
to 
read 
SUMMARY 
This amendment makes the following changes to the bill. 
1. 
It removes 
the 
provision 
statutory authority and procedures for 
accept protective claims for refund. 
that established specific 
the State Tax Assessor to 
2. 
It removes the provision that clarified that a taxpayer 
who fails to file a timely request for administrative review of a 
denial of a tax refund claim forfeits the right to seek review of 
the denial in Superior Court and that the taxpayer can not submit 
reiterative claims for the same refund. 
3. 
It provides confidentiality 
provided 
to 
the State 
Tax 
Assessor 
legislation or legislative analysis. 
protection 
and 
used 
to information 
for 
preparing 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A" to S.P. 530, L.D. 1571 
4. 
It clarifies that the sales tax exemption for motor 
vehicles leased to nonresidents does not apply to short-term 
rentals of automobiles to nonresidents. 
This change corrects an 
apparent oversight in the drafting of statutory changes enacted 
in 2002. 
5. 
It removes a 
prov~s~on designed to correct a conflict 
between the Maine Revised Statutes, Title 36, sections 1861-A and 
1951-A regarding an individual' s use tax responsibility to the 
State because the correction is being made in another bill. 
6. 
It 
removes 
a 
provision 
regarding 
administrative 
requirements pertaining to the sale of a controlling interest in 
real property in the real estate transfer tax law. 
7. 
It limits the requirement to add back net operating 
losses that have been carried back to previous years for federal 
income tax purposes to tax years beginning before January 1, 
2002, consistent with other recent changes in Maine' s treatment 
of federal net operating loss deductions. 
8. 
It 
eliminates 
the 
prov~s~on 
allowing 
a 
negative 
modification amount attributable to subtraction of a state income 
tax refund to be carried back to prior years. 
The negative 
modification will still be available in carry-forward years. 
This change is consistent with statutory changes made in 2002 
disallowing the use of federal net operating loss carry-backs. 
9. 
It removes 
a 
definition of 
"primary recipient" for 
purposes of the pension income deduction. 
10. 
It removes provisions designed to clarify the language 
of Title 36, section 5124-A because they are no longer needed. 
11. 
It removes a provision designed to clarify that the 
credit for income tax paid to another taxing jurisdiction is 
limited to tax paid with respect to income that Maine recognizes 
as being derived from sources in the other taxing jurisdiction. 
The changes conformed to current agency practice. 
12. 
It 
removes 
a 
provision 
designed 
to 
clarify 
the 
calculation of the credit for child care expenses by part-year 
residents. 
The changes conformed to current agency practice. 
13. 
equipment 
equipment 
It 
tax 
tax 
removes 
a 
provision 
that 
amends 
reimbursement statutes to provide 
reimbursement is available, 
and 
the 
business 
that business 
limited to, 
a 
COMM/rrEE AMENDMENT 
COMMITTEE AMENDMENT ,,~, to S.P. 530, L.D. 1571 
successor in interest that owns eligible business property on 
August 1st of the year in which a claim may be made. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
llpproved: 05/15/03 ~~~ 
Office of Fiscal and Program Review 
LD 1571 
An Act Concerning Technical Changes to the Tax Laws 
LR 1977{02) 
Fiscal Note for Bill as Amended by Committee Amendment ,A, /75 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
LR1977(2) - Fiscal Note - Page 1 of 1