An Act To Encourage the Payment of Delinquent Taxes
Maine Legislature, Session 121, LD 0966
Sponsors: ROTUNDO, O'BRIEN, TURNER

Legislative Document 
No. 966 
H.P.723 
House of Representatives, February 25, 2003 
An Act To Encourage the Payment of Delinquent Taxes 
Reference to the CommIttee on Taxation suggested and ordered printed. 
Presented by Representati ve MILLETT of Waterford. 
'7f/~ 1/7. 71Id£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Senator ROTUNDO of Androscoggin and 
Representative: O'BRIEN of Augusta, Senator: TURNER of Cumberland. 
Printed on recyc1et.1 paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA c. 913-A is enacted to read: 
CHAPTER 913-A 
TAX AMNESTY 
§6561. 
Maine Tu ADmesty Program 
There is established the Maine Tax Amnesty Program, referred 
to in this chapter as "the program." 
This program is intended to 
encourage delinguent taxpayers to comply with the State's tax 
laws to enable the assessor to identify and collect previously 
unreported taxes or accelerate collection of certain delinguent 
tax liabilities. 
The 
long-term goal 
of this program is to 
improve taxpayer compliance with the State's tax laws. 
§6562. 
Administration 
The 
assessor shall administer the program. 
The 
program 
applies to tax liabilities delinguent as of April 15, 
2003, 
including tax on returns not filed, tax liabilities according to 
the 
records 
of 
the 
bureau 
as 
of 
April 
15, 
2003 
and 
tax 
liabilities not reported or established but delinguent as of 
April 
15, 
2003. 
A taxpayer 
may participate in the 
program 
whether or not the taxpayer is under audit and without regard to 
whether the amount due is subject to a pending administrative or 
judicial proceeding, except that this does not include pending 
criminal action. 
A taxpayer may participate in the program to 
the extent of the uncontested portion of an assessed liability. 
Participation in the program is conditioned upon the taxpayer's 
agreement that the right to protest or pursue an administrative 
or judicial proceeding with regard to returns filed under the 
program or to claim any refund of money paid under the program is 
barred. 
Notwithstanding sections 184, 184-A, 186 and 187-B, 
a 
taxpayer with a 
tax liability within the limitations of this 
chapter is absolved from criminal or civil prosecution or civil 
penalties 
ar1s1ng 
from 
that liability and 
from 
1/2 
of 
the 
interest associated with any such liability if the taxpayer: 
1. 
Return filed. 
Properly completes and files an amnesty 
tax return as reguired by the assessor; 
2. 
Tax and interest paid. 
Pays all tax and interest as 
determined on the amnesty tax return before the end of the 
amnesty period or enters into a payment plan approved by the 
assessor; 
3. 
No criminal action pending. 
Is not currently charged 
with or under active investigation for a criminal offense arising 
from a violation of the state tax laws as provided in this Title 
or Title l7-Aj and 
4. 
Illegal activities. 
Is not reporting taxes arising from 
illegal activities. 
§6563. 
Exemption; leased vehicles in interstate commerce 
Notwithstanding section 6563, 
a 
taxpayer participating in 
the program due to a tax liability arising from the use in the 
State of a vehicle that fails or failed to qualify for the 
exemption under section 1760, subsection 41 because the vehicle 
is leased is absolved from criminal or civil prosecution or civil 
penalties and from all of the interest associated with any such 
liability. 
§6564. 
Undisclosed liabilities 
This chapter may not be 
from 
instituting civil 
or 
taxpayer with respect to any 
on the amnesty tax return. 
§6565. 
Amnesty period 
construed to prohibit the assessor 
criminal 
proceedings 
against 
any 
amount of tax that is not disclosed 
The time period during which an amnesty tax return may be 
filed is November 1, 2003 to December 31, 2003. 
§6566. 
Amnesty tax return 
The assessor shall prepare and make available the amnesty 
tax return. 
The return and associated guidelines prepared by the 
assessor, which govern participation in the program, are exempt 
from the Maine Administrative Procedure Act. 
The application 
requires the approval of the assessor. 
The assessor may deny any 
application not consistent with the program. 
§6567. 
Payment plan 
The assessor may enter into an installment agreement in 
cases of severe hardship in lieu of the complete payment of all 
taxes and interest as determined on the amnesty tax return. 
In 
such cases, 
25qb 
of the total liability must be paid with the 
return and the balance must be paid in not more than 6 monthly 
installments. 
Failure 
of 
the 
taxpayer 
to 
make 
the 
agreed 
payments in a timely fashion voids the application of the program 
to that taxpayer. 
All such agreements and payments must include 
interest at the rate of 12% per annum on the tax outstanding. 
§6568. 
Amnesty receipts 
Notwithstanding any other provision of law, funds obtained 
through the program established by this chapter accrue in their: 
entirety directly to the General Fund. 
§6569. 
Repeal 
This chapter is repealed January 1, 2007. 
Sec. 2. Amnesty report. 
The State Tax Assessor shall analyze 
and report on the effectiveness of the Maine Tax Amnesty Program 
established by the Maine Revised Statutes, Title 36, 
chapter 
913-A. 
This 
report 
must 
include 
at 
least 
the 
following 
information: 
1. 
The number of taxpayers who participated in the Maine 
Tax Amnesty Program; 
2. 
The amount of money generated by the program; 
3. 
The 
amnesty-related 
expenses 
of 
the 
Department 
of 
Administrative and Financial Services, Bureau of Revenue Services 
for 6 months before the amnesty period, during the amnesty period 
and immediately following the amnesty period until June 30, 2004; 
4. 
The effectiveness in collecting tax receivables during 
the period January 1, 2004, to December 1, 2004; 
5. 
Recommendations for changes, improvements or additions 
to tax compliance enforcement procedures; and 
6. 
Any other information the assessor chooses to include. 
This 
report 
must 
be 
presented 
to 
the 
joint 
standing 
committee of the Legislature having jurisdiction over taxation 
matters during the First Regular Session of the 122nd Legislature 
by February 1, 2005. 
The committee shall review the report and 
submit its own report, together with any necessary implementing 
legislation, recommending continuation or changes in enforcement 
procedures. 
This report must be 
made 
to the Second Regular 
Session of the 122nd Legislature by December 1, 2005. 
SUMMARY 
This bill establishes the Maine Tax Amnesty Program. 
The 
program is intended to encourage delinquent taxpayers, those that 
are delinquent in paying taxes due on or before April 15, 2003, 
• 
to 
comply 
with 
the 
law. 
Incentives 
provided 
to 
encourage 
compliance are a waiver of criminal or civil prosecution and 
civil penalties, plus a 50% reduction of the interest owed. 
All 
funds obtained through the operation of this program go directly 
to the General Fund. 
This bill is modeled on a similar program that was in effect 
in 1990.