Maine Legislature, Session 122, LD 1546
Committee Amendment CA_A_H391 (House)
Amends: 36 MRSA §1752, 36 MRSA §1754-B, 36 MRSA §1764, 36 MRSA §2513, 36 MRSA §2521-A, 36 MRSA §4064, 36 MRSA §4068, 36 MRSA §5200-A

COMMITTEE AMENDMENT "A" to H.P. 1087, L.D. 1546, Bill, "An 
Act Concerning Technical Changes to the Tax Laws" 
Amend the bill in section 13 in subsection 7-C in the 3rd 
line (page 4, line 46 in L.D.) by striking out the following: 
"~" and inserting in its place the following: 
'Service' 
Further amend the bill by striking out all of section 15 and 
inserting in its place the following: 
'Sec. 15. 36 MRSA §1752, sub-§II, 1(B, as amended by PL 2005, 
Pt. TTT, §1 and affected by §4, is further amended to read: 
B. 
"Retail sale" does not include: 
(1) 
Any casual sale; 
(2) 
Any 
settlement 
sale 
of 
by 
an 
a 
personal representative 
estate, 
unless 
the sale 
in the 
is 
made 
through a retailer, or unless the sale is made in the 
continuation or operation of a business; 
(3) 
The sale, to a person engaged in the business of 
renting automobiles, of automobiles, integral parts of 
automobiles or accessories to automobiles, for rental 
or for use in an automobile rented on a short-term 
basis; 
Page l-LR0533(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1087, L.D. 1546 
(4) 
The sale, to a person engaged in the business of 
renting 
aQai&--e~ video 
media 
and 
aQaie--e~ video 
equipment, of 
a1:iQiG--e~ video media eF-.a,-Qaie or video 
equipment for rental; 
(5) 
The sale, to a person engaged in the business of 
renting or 
leasing automobiles, 
of 
automobiles 
for 
rental or lease for one year or more; 
(6) 
The sale, to a person engaged in the business of 
providing cable or satellite television services, of 
associated equipment for rental or lease to subscribers 
in conjunction with 
a 
sale 
of 
extended 
cable 
or 
extended satellite television services; or 
(7) 
The sale, to a person engaged in the business of 
renting furniture, or audio media and audio equipment 
of furniture, audio media or audio equipment for rental 
pursuant to a rental-purchase agreement as defined in 
Title 9-A. section 11-105.' 
Further amend the bill by striking out all of section 18 and 
inserting in its place the following: 
'Sec. 18. 36 MRSA § 17 54-B, sub-§ 1, 1fD, as enac ted by PL 1995, 
c. 640, §3, is amended to read: 
D. 
Every eeBs~~BeeT-~-~-&a~e&pe~&eB person that makes 
retail sales in this State of tangible personal property or 
taxable services on behalf of a principal that is outside of 
this State if the principal is not the holder of a valid 
registration certificate; 
Sec. 19. 36 MRSA §1754-B, sub-§I, 1(F, as amended by PL 2005, c. 
12, Pt. 0, §2 and affected by §5, is further amended to read: 
F. 
Every person that manages or operates in the 
course of business or on a casual basis a hotel, 
house or tourist or trailer camp in this State 
regular 
rooming 
or that 
collects or receives rents from a hotel, rooming house or 
tourist or trailer camp in this State; aBa' 
Further amend the bill by striking out all of section 21. 
Further amend the bill in section 22 in subsection 25 in the 
3rd line from the end (page 8, line 29 in L.D.) by striking out 
the following: 
"aelRe&t;.ie-e~-~&~ei~B" and inserting in its place 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT A" to H.P. 1087, L.D. 1546 . 
the following: 
'domestic or foreign' and in the next to last 
line (page 8, line 30 in L.D.) by striking out the following: 
"EieJRes~4.e-~--~e!'e~a" and inserting in its place the following: 
'domestic or foreign' 
Further amend the bill by inserting after section 24 the 
following: 
'Sec. 25. 36 MRSA §1764, as amended by PL 2005, c. 12, Pte 0, 
§3 and affected by §5, is further amended to read: 
§17fi4. Taz aqainst certain casual sales 
The tax imposed by chapters 211 to 225 must be levied upon 
all casual rentals of living quarters in a hotel, rooming house 
or tourist or trailer camp and upon all casual sales involving 
the sale of camper trailers, 
truck campers, 
motor vehicles, 
special 
mobile 
equipment 
except 
farm 
tractors 
and 
lumber 
harvesting vehicles or loaders, livestock trailers, watercraft or 
aircraft except those sold for resale at retail sale or to a 
corporation, partnership, limited liability company or limited 
liability partnership when the seller is the owner of a majority 
of the 
common stock of the corporation or of the ownership 
interests 
in 
the 
partnership, 
limited liability 
company 
or 
limited liability partnership. 
This section does not apply to 
the rental of living quarters 
wRea-~.£l:a.t.--:r;.en.t-a-l--is rented for 
~ 
total of fewer than 15 days eaeR in the calendar year, except 
that a 
person who 
owns 
and offers for rental more than one 
property in the State during the calendar year is liable for 
collecting sales tax with respect to the rental of each unit 
regardless of the number of days for which it is rented.' 
Further amend the bill by inserting after section 28 the 
following: 
'Sec. 29. 36 MRSA §2513, first" as amended by PL 2003, c. 20, 
Pt. CC, §l and affected by §3, is further amended to read: 
Every insurance company or association that does business or 
collects premiums or assessments including annuity considerations 
in the State, 
eHeep~-~~~&~~&e4-4.£-~-~-aS.+T including 
surety companies and companies engaged in the business of credit 
insurance or title insurance, shall, for the privilege of doing 
business in this State, 
and in addition to any other taxes 
imposed for such privilege pay a 
tax upon all gross direct 
premiums including annuity considerations, whether in cash or 
otherwise, on contracts written on risks located or resident in 
the State for insurance of life, annuity, fire, casualty and 
other risks at the rate of 
2~ a year. 
Every surplus lines 
insurer that does business or co;I.lects premiums in the State 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~" to H.P. 1087, L.D. 1546 
shall, for the privilege of doing business in this State, and in 
addition to any other taxes imposed for such privilege, pay a tax 
upon all gross direct premiums, whether in cash or otherwise, on 
contracts written on risks located or resident in the State at 
the rate of 3"& a year. 
The tax must be paid by the insurer's 
licensed producer with surplus lines authority pursuant to Title 
24-A, 
section 2016. 
For purposes of this section, 
the term 
"annuity considerations" includes amounts paid to an insurance 
company when received for the purchase of a contract that may 
result in an annuity, even when the annuitization never occurs or 
does not occur until some time in the future and the amounts are 
in the meantime applied to an investment vehicle other than an 
annuity. 
This section does not a,pply to mutual fire insura,nce 
l4 
companies under section 2517 or to captive insurance companies 
incorporated under the la,ws of another state. 
Sec. 30. 36 MRSA §2521-A, first 1[, as amended by PL 1997, c. 
435, §5, is further amended to read: 
Every 
insurance 
company, 
captive 
insurance 
company, 
association, producer or attorney-in-fact of a reciprocal insurer 
subject to tax as imposed by this chapter shall on or before the 
last day of each April, the 25th day of each June and the last 
day of each October file with the State Tax Assessor on forms 
prescribed by the State Tax Assessor a return for the quarter 
ending the last day of the preceding month, except for the month 
of June, which is for the quarter ending June 30th. These returns 
may be on an estimated basis, as long as each April and June 
installment equals at least 35"& of the total tax paid for the 
preceding calendar year or 35"& of the total tax to be paid for 
the current calendar year. The remaining installments must equal 
l5"-t. of the total tax to be paid for the preceding calendar year 
or 15"& of the total tax to be paid for the current year. 
An 
authorized 
company 
official 
shall 
affirm 
which elective is 
selected. Such elective can not be changed during the current 
calendar year. The final return must be filed on or before March 
15th covering the prior calendar year.' 
Further amend the bill by striking out all of sections 39 
and 40 and inserting in their place the following: 
'Sec. 39. 36 MRSA §4064, first 1r, as amended by PL 2005, c. 12, 
Pt. M, §l and affected by §2, is further amended to read: 
A tax is imposed upon the transfer of real property and 
tangible personal property situated in this State and held by an 
individual who dies prior to January 1, 2002 or after December 
31, 2002 and who at the time of death was not a resident of this 
State. 
When 
real 
or 
tangible 
personal 
property 
has 
been 
transferred into a trust or a limited liability company or other 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 'A" to H.P. 1087, L.D. 1546 
pass-through entity, the tax imposed by this section applies as 
if the trust or limited liability company or other pass-through 
entity did not exist and the property was personally owned by the 
decedent. 
Maine property is subject to the tax imposed by this 
section to the extent that such property is included in the 
decedent's federal gross estate. 
The amount of this tax is a sum 
equal to that proportion of the federal credit that the value of 
the decedent's Maine real and tangible personal property eaRed in 
this State 
eaa~-,,!~i.fie6--f-()i:--eAe--e~ed:ie bears to the value of 
the decedent's federal gross estate. All property values under 
this section are as finally determined for federal estate tax 
purposes, 
except that for estates of 
decedents 
dying after 
December 31, 2002 that do not incur a federal estate tax, all 
property values are as finally determined by the assessor in 
accordance with the Code as if the estate had incurred a federal 
estate tax. 
The share of the federal credit used to determine 
the amount of a nonresident individual's estate tax under this 
section is computed without regard to whether the specific real 
or tangible personal property located in the State is marital 
deduction property. 
Sec. 40. 36 MRSA §4068, as amended by PL 2005, c. 12, Pt. N, 
§3 and affected by §4, is further amended to read: 
§4068. TiD: due date; filing of return and payment of tiD: 
1. 
Date due. 
~Re--t-aH--i~e4--&y"-~-hi-&--eRapee!' Except as 
otherwise provided by this chapter. 
a return refl[uired by this 
section is due 9 months after the date of the decedent's death 
and any tax due under this chapter is due at the same time. 
Interest 
sRaJ:.J:.-aee~\le accrues on any amount of tax not paid by 
eRae the due date. 
2. 
Return required. 
IR--aJ.-l--&ase-&-~.e--eAe-!'e--i6--a--:Ma:iRe 
eseaee-~-aK--l-iab-i-l-i-t~r-eRe The personal representative shall pay 
eRe--t-aH---i~-By-~i-s--~l>:apt~--aRd file a 
Maine estate tax 
return wiehiR--9--Rl9ReRs--af~~--~ae-~-'-&--deaeRT--.!l'~-!'eel:1!'R 
mQse-~~-~-'e!'m-~e6e~~geQ-~-~-Seaee-~aK-Assess~-~aG-ie 
Rll:1se-~~-&y"-a-~~-eae-.feQe~a~-~~~-~~-!'eel:1!'RT 
i~-~7-~~~-&l:1pp9~e~~-QgeQmeR~a~i9R-~~--t~-a&se-&~~-Rlay 
!'e~l:1i!'eT whenever: 
A. 
The Code reQuires that a federal estate tax return be 
filed: or 
B. 
The federal gross estate. increased by the amount of 
adj usted taxable gifts made by the decedent after December 
31. 1976 and by the aggregate amount of any specific gift 
tax exemption under former Code. Section 2521 used by the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~" to H.P. 1087, L.n. 1546 
decedent after September 8. 1976 exceed the exclusion and 
related unified credit amounts specified in section 4062. 
subsection I-A. 
The return must be in the form prescribed by the State Tax 
Assessor and it must be accompanied by a copy of the federal 
estate tax return. if any. and by other supporting documentation 
that the assessor may reguire. 
3. 
Bo tax liability. In all cases where ~AeFe-~s-R9 A Maine 
estate tax lia9ili~y return is not reguired to be filed: 
A. If the personal representative makes no election pursuant 
to 
section 
4062, 
subsection 
2-B, 
the 
personal 
representative, surviving joint tenant of real estate or any 
other person whose real estate might be subject to a lien 
for taxes pursuant to this chapter may at any time file with 
the assessor in the 
form prescribed by the assessor 
a 
statement of the value of the federal gross estate; and 
B. If the personal representative makes an election pursuant 
to section 4062, subsection 2-B, the personal representative 
shall make such election on a timely filed return. 
The 
return must be in the form prescribed by the assessor and it 
must be accompanied by a 
copy of the federal estate tax 
return, if any, and other supporting documentation that the 
assessor may require, including documentation related to an 
election made pursuant to section 4062, subsection 2-B.' 
Further amend the bill by striking out all of section 48 and 
inserting in its place the following: 
'Sec. 48. 36 MRS A §5122, sub-§l, 1JN, as amended by PL 2005, c. 
12, Pt. P, §2 and affected by §10, is further amended to read: 
N. 
With respect to property placed in service during the 
taxable year, 
an 
amount 
equal 
to 
the net 
increase in 
depreciation or expensing attributable to: 
(1) For taxable years beginning on or after January 1, 
2002 
but prior 
to 
January 
1, 
2006, 
a 
30% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 101 of the federal Job Creation and Worker 
Assistance Act of 2002, Public Law 107-147 with respect 
to property placed in service during the taxable year; 
(2) For taxable years beginning on or after January 1, 
2002 
but prior 
to 
January 
1, 
2006, 
a 
50% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 201 of the federal Jobs 
and Growth Tax 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A" to H.P. 1087, L.D. 1546 
Relief Reconciliation Act of 2003, Public Law 108-27 
with respect to property placed in service during the 
taxable year; and 
(3) For taxable years beginning on or after January 1, 
2003 but prior to January 1, 
2008, 
the increase in 
aggregate cost e;baiJReEl .Y..S..e.d under Section 179 of the 
Code pursuant to Section 202 of the federal Jobs and 
Growth Tax Relief Reconciliation Act of 2003, Public 
Law 108-27 or pursuant to Section 201 of the federal 
American Jobs Creation Act of 2004, Public Law 108-357;' 
Further amend the bill by striking out all of section 51 and 
inserting in its place the following: 
'Sec. 51. 36 MRSA §5200-A, sub-§I, ,N, as amended by PL 2005, 
c. 12, Pt. P, §7 and affected by §10, is further amended to read: 
N. 
Wi th respect to property placed in service during the 
taxable year, 
an 
amount 
equal 
to 
the net increase in 
depreciation or expensing attributable to: 
(1) For taxable years beginning on or after January 1, 
2002 
but prior 
to 
January 
1, 
2006, 
a 
30% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 101 of the federal Job Creation and Worker 
Assistance Act of 2002, Public Law 107-147 with respect 
to property placed in service during the taxable year; 
(2) For taxable years beginning on or after January 1, 
2002 
but prior 
to 
January 
1, 
2006, 
a 
50% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 201 of the federal Jobs 
and Growth Tax 
Relief Reconciliation Act of 2003, Public Law 108-27 
with respect to property placed in service during the 
taxable year; and 
(3) For taxable years beginning on or after January 1, 
2003 but prior to January 1, 
2008, the increase in 
aggregate cost e;baiJReEl ~ 
under Section 179 of the 
Code pursuant to Section 202 of the federal Jobs and 
Growth Tax Relief Reconciliation Act of 2003, Public 
Law 108-27 or pursuant to Section 201 of the federal 
American Jobs Creation Act of 2004, Public Law 108-357;' 
Further amend the bill by striking out all of sections 59 
and 60 and inserting in its place the following: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1087, L.D. 1546 
• Sec. 59. P&SL 1999, c.39, §1 is repealed.' 
Further amend the bill by relettering or renumbering any 
nonconsecutive 
Part 
letter 
or 
section 
number 
to 
read 
consecutively. 
SUMMARY 
This amendment corrects provisions in the bill, adds new 
technical 
changes identified after the bill was 
printed and 
removes provisions considered unnecessary or not technical in 
nature. 
COMMITTEE AMENDMENT