An Act To Provide Safety Net Funds
Maine Legislature, Session 122, LD 1314
Committee: Taxation
Sponsors: PINGREE, CRAVEN, DUDLEY, FAIRCLOTH, LERMAN, PERRY, WEBSTER
Amends: 36 MRSA §4365, 36 MRSA §4365-E

Legislative Document 
No. 1314 
H.P.912 
House of Representatives, March 15,2005 
An Act To Provide Safety Net Funds 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative PINGREE of North Haven. 
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frl.11!d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: CRAVEN of Lewiston, DUDLEY of Portland, FAIRCLOTH 
of Bangor, LERMAN of Augusta, PERRY of Calais, WEBSTER of Freeport. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as f('lIows: 
Sec. 1. 36 MRSA §4365, as amended by PL 2003, c. 705, §6, is 
further amended to read: 
§4365. Rate of tax 
A tax is imposed on all 
or held in this State by any 
mills for each cigarette. 
the affixing of stamps to the 
cigarettes imported into this State 
person for sale at the rate of -4~­
Payment of the tax is evidenced by 
packages containing the cigarettes. 
Sec. 2. 36 MRSA §4365-E, as enacted by PL 2001, c. 439, Pt. 
SSSS, §2, is amended to read: 
§4365-E. 
Application of cigarette tax rate increase effective 
November 1. 2005 
The following provisions apply to cigarettes held for resale 
on Qe~egeF-*T-aQQ* November 1. 2005. 
1. 
Stamped rate. 
Cigarettes stamped at the rate of ;n 
~I 
mills per cigarette and held [or resale a[te~ Sep~em~eF-iQr-~Qg* 
October 31. 2005 are subject to tax at the rate of -4~ 49 mills 
per cigarette. 
2. 
Liability. 
A person possessing cigarettes for resale is 
liable for the difference between the tax rate of -4~ .4.2 mills 
per cigarette and the tax rate of ;n !! 7 mills per cigarette in 
effect 
before 
Qe~egeF---±-r--6gQ}' 
November 
I, 
2005. 
Stamps 
indicating payment of the tax imposed by this section must be 
affixed to all packages of cigarettes held for resale as of 
Qe~ege!'--*r-~QQ* N.QYgm:QgJ"_lL-~QJ)5, except that cigarettes held in 
vending machines as of that date do not require that stamp. 
3. 
Vending machines. 
Notwithstanding any other provision 
of this chapter, 
it is 
presumed that all cigarette vending 
machines are filled to capacity on 
Qe~e~eE-.-±-r-aQQ* November 1, 
2005 and that the tax imposed by this section must be reported on 
that basis. 
A credit against this inventory tax must be allowed 
for cigarettes stamped at the rate of -4~ ~~ mills per cigarette 
placed in· vending machines before 
Qe~egeF-..;L-,--aQQ* November 1, 
2005. 
4. 
Payment. 
Payment of the tax 
impo~ed by this 
must be made to the State Tax Assessor by Ja~HaFY-*T-~QQa 
15. 2006, accompanied by forms prescribed by the assessor. 
section 
January 
Sec. 
3. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
HEALTH AND HUMAN SERVICES, DEPAR"l"MENT OF 
Bureau of Health 0143 
Initiative: 
Appropriates funds to provide grants to federally 
qualified 
health 
centers 
and 
federal 
Indian 
Health 
Service-supported 
centers 
to 
provide 
primary health 
care 
to 
low-income, uninsured and underinsured individuals. 
GENERAL FUND 
2005-06 
2006-07 
All Other 
$1,750,000 
$3,000,000 
GENERAL FUND TOTAL 
$1,750,000 
$3,000,000 
Sec. 4. Effective date. 
That section of this Act that amends 
the Maine Revised Statutes, Title 36, section 4365 takes effect 
November 1, 2005. 
SUMMARY 
This bill increases the cigarette tax by 4¢ and appropriates 
funds for the Department of Health and Human Services, Bureau of 
Health to provide grants to federally qualified health centers 
and federal Indian Health Service-supported centers.