An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2006 and June 30, 2007
Maine Legislature, Session 122, LD 0468
Committee Amendment CA_A-SA_T_S53 (Senate)
Amends: 36 MRSA §17, 36 MRSA §1752, 36 MRSA §1811-C, 36 MRSA §5111, 36 MRSA §5122, 36 MRSA §5403, 7 MRSA §2954

SENATE 
AMENDMENT :T" to COMMITTEE 
AMENDMENT 
"A" to H. P. 
343, L.D. 468, Bill, "An Act Making Unified Appropriations and 
Allocations for the Expenditures of State Government, 
General 
Fund and Other Funds, and Changing Certain Provisions of the Law 
Necessary to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2006 and June 30, 2007" 
Amend the amendment in Part C in section 2 in the last line 
(page 197, line 26 in amendment) by striking out the following: 
"$13,425,799" 
and 
inserting 
in 
its 
place 
the 
following: 
'$14,109,980' 
Further amend the amendment in Part C in section 3 in the 
last line (page 198, line 1 in amendment) by striking out the 
following: 
"$837,453,898" 
and 
inserting 
in 
its 
place 
the 
following: 
'$838,138,079' 
Further 
amend the amendment in Part L in section 1 
in 
paragraph V in the last line (page 206, line 5 in amendment) by 
striking out the following: 
"aaa" and inserting in its place the 
following: 
'and' 
Further amend the amendment in Part L by striking out all of 
sections 2, 3 and 4. 
Further amend the amendment in Part P by striking out all of 
sections 2, 3 and 7. 
Further amend the amendment in Part P in section 10 by 
striking out all of the 2nd sentence (page 215, lines 11 to 14 in 
amendment) 
SENATE AMENDMENT 
~~. 
~~.~ 
.. 
SENATE AMENDMENT ,T.. to COMMITTEE 
AMENDMENT "A" to H. P. 
L.D. 468 
343, 
Further amend the amendment by striking out all of Part R. 
Further amend the amendment in Part UU in section 3 by 
striking out all of subsection 3 and inserting in its place the 
following: 
'3. 
Transportation costs. 
For fiscal year 2005-06, 
the 
commissioner, using information provided by a statewide education 
policy 
research 
institute, 
shall 
establish 
a 
per-pupil 
transportation cost for each school administrative unit based on 
an analysis of the most recent year's reported transportation 
expenditures and a predicted per-pupil transportation cost based 
on the number of resident pupils, the number of miles of Class 1 
to Class 
roads in the school administrative unit and any 
approved adjustments. 
In fiscal year 
2005-06 
the established 
per-pupil transportation cost for each school administrative unit 
is the most recent year's reported transportation expenditures or 
predicted per-pupil transportation cost, plus 10'%" 
whichever is 
lower. Beginning in fiscal year 2006-07, and for each subsequent 
fiscal year, the per-pupil transportation costs for each school 
administrative unit are its established costs for the most recent 
year adjusted by the Consumer Price Index or other comparable 
index. For fiscal years 2005-06 and 2006-07, in no case may the 
per-pupil transportation costs for a school administrative unit 
be less than 75'%, of the established costs for the most recent 
fiscal 
year, 
except that 
for 
fiscal year 
2005-06 
only the 
per-pupil 
transportation 
costs 
for 
a 
school 
administrative 
district or a community school district that has more than 1,250 
resident pupils in the school district may not be less than 90'%, 
of the established costs for the most recent fiscal year and any 
resulting 
increase 
in 
the 
total 
allocation 
for 
the 
school 
district must be added to the state share for the district in 
addition to 
any transition adjustment that the district is 
entitled to receive pursuant to section 15686, 
subsection 1. 
Every 3 years, the commissioner, using information provided by a 
statewide education policy research institute, shall examine and 
may adjust reported transportation expenditures 
and predicted 
transportation costs. The commissioner shall develop an appeals 
procedure 
for 
established per-pupil 
transportation costs 
for 
school administrative units;' 
Further amend the amendment in Part UU by inserting after 
section 12 the following: 
'Sec. UU-13. Appropriations and allocations. 
appropriations and allocations are made. 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 
0308 
The 
following 
SENATE AMENDMENT 
, 
~~e:r 
-,. 
SENATE AMENDMENT T" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
L.D. 468 
343, 
Initiative: 
Provides funds so that the cost associated with the 
requirement that the increase in allocation received by certain 
school districts as a result of 
per-pupil transportation costs 
for 
school 
administrative 
districts 
and 
community 
school 
districts that have more than 1, 250 resident pupils not be less 
than 90~ of the established costs for the most recent fisca.l year 
is in addition to any transition adjustment that the district is 
entitled to receive. 
GENERAL FOND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$684,181 
$684,181 
2006-01 
$0 
$0' 
Further amend the amendment in Part PPPP in section 1 in 
that part designated "§6042." by striking out all of the first 
paragraph (page 391, lines 28 to 33 in amendment) and inserting 
in its place the following: 
'Notwithstanding any other prov~s~on of law. no later than 
January I. 
2006. 
the bank may issue up to $140.000.000 plus 
financing costs. excluding bonds to refund bonds for the purpose 
of obtaining the economic benefit of reducing the debt service on 
the outstanding bonds. of pension cost reduction bonds. to be 
repaid solely from funds provided in this subchapter.' 
Further amend the amendment in Part PPPP in section 1 in 
that part designated "§6043." in subsection 5 in the 6th and 7th 
lines (page 394, lines 1 and 2 in amendment) by striking out the 
following: 
"Title 8. section 1036. subsection 2. paragraphs at 
C, D, H and Ii" 
Further amend the amendment in Part PPPP in section 1 in 
that part designated "§6043." in subsection 7 in the 8th line 
(page 394, line 44 in amendment) by striking out the following: 
"Title 8. section 1036. subsection 2. paragraphs a. c. D. Hand 
!..t" 
Further amend the amendment in Part PPPP by striking out all 
of sections 2 to 5 and inserting in their place the following: 
'Sec. PPPP-2. Prepayment of teacher retirement contribution within 
each fiscal year. 
The 
State Controller shall 
make 
the 
total 
payments for the normal cost and unfunded actuarial liability 
contributions 
for 
teachers' 
retirement 
for 
each fiscal 
year 
during the 2006-2007 biennium on or before July 15th of each 
fiscal year. 
SENATE AMENDMENT 
~ ~f::, 
\ .... 
SENATE 
AMENDMENT :-[:', to COMMITTEE 
AMENDMENT 
"A" to H.P. 
L.D. 468 
343, 
Sec. PPPP-3. Appropriations and allocations. 
appropriations and allocations are made. 
EDUCA'l'ION, DEPAlr.I:MEII'r OF 
Teacher Retirement 
0170 
The 
following 
Initiative: 
Deappropriates funds resulting from savings within 
each fiscal year of payments made at the beginning of the fiscal 
year for the normal cost and unfunded actuarial liability of 
teachers' retirement rather than being made monthly. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Teacher Retirement 
0170 
2005-06 
($10,776,929) 
($10,776,929) 
2006-07 
($11,369,647) 
($11,369,647) 
Initiative: 
Deappropriates 
funds 
due 
to 
prefunding 
of 
the 
unfunded 
actuarial 
liability 
of 
teachers' 
retirement 
with 
proceeds 
from the Pension Cost Reduction Bond, 
including the 
estimated savings from the prepayment of fiscal year 2006-07 
amounts in the beginning of fiscal year 2005-06. 
GENERAL FUND 
2005-06 
2006-07 
All Other 
($20,000,000) ($128,553,337) 
GENERAL FUND TOTAL 
($20,000,000) ($128,553,337) 
EDUCA'l'ION, DEPAlr.I:MEII'r OF 
DEPAlr.I:MEII'r 'l'O'rALS 
2005-06 
2006-07 
GENERAL FUND 
($30,776,929) 
($139,922,984) 
DEPAlr.I:MEII'r 'l'O'I'AL -
ALL FUNDS 
($30,776,929) ($139,922,984)' 
Further amend the amendment by adding after Part PPPP the 
following: 
'PARTQQQQ 
Sec. QQQQ-l. 36 MRSA §17S2, sub-§16-A is enacted to read: 
A. 
Support 
services. 
"Support 
seryices" 
means 
contracted services provided to 
a 
business, 
including office 
administrative services; facilities support; employment staffing; 
business 
support 
and 
transcription; 
travel 
arrangements 
and 
reservations; 
investigation and security services; maintenance 
and 
other 
services 
to 
commercial 
buildings 
and 
apartment 
SENATE AMENDMENT 
i'" 
. ~~"§ • 
. -'- ~ 
SENATE AMENDMENT ,T" to COMMITTEE 
AMENDMENT "A" to H.P. 
L.D. 468 
343, 
dwellings: and collection, management and remediation of waste. 
For purposes of this subsection, "contracted services" does not 
include services provided under a direct employment relationship 
by an employee of the person receiving the services. 
Sec. QQQQ-2. 36 MRSA §1752, sub-§17-B, as enacted by PL 
2003, c. 673, Pt. V, §19 and affected by §29, is amended to read: 
I7-B. 
Taxable service. 
"Taxable service" means the rental 
of living quarters in a hotel, rooming house, tourist or trailer 
camp: 
the 
transmission 
and distribution of electricity: 
the 
rental or lease of an automobile: support services: and the sale 
of prepaid calling service. 
Sec. QQQQ-3. 36 MRSA §1811-C is enacted to read: 
SI8Il-C. 
Temporaxy surcharge for prqperty tax relief 
Beginning July 1, 
2005 
and ending November 1, 
2006, 
in 
addition to 
the 
tax 
imposed 
pursuant 
to 
section 
1811. 
an 
additional 
1% 
tax is 
imposed on 
the value of all tangible 
personal property and taxable services sold at retail in this 
State and subject to the tax specified in section 1811. 
Notwithstanding 
Title 
30-A, 
section 
5681. 
the 
entire 
surcharge imposed pursuant to this section must be deposited in 
the General Fund. 
The State Controller shall transfer from the 
General Fund to the Tourism Marketing Promotion Fund established 
in Title 5, section 13090-K, subsection 1 an amount, as certified 
by the State Tax Assessor, that is equivalent to 
5% of the 
surcharge that is imposed pursuant to this section on the value 
of liquor sold in licensed establishments, as defined in Title 
28-A, section 2, subsection 15, in accordance with Title 28-A, 
chapter 43 and on the value of rental of living quarters in any 
hoteL rooming house or tourist or trailer camp pursuant to the 
following schedule: 
1. 
First transfer. 
The 
first transfer must 
occur 
by 
October 1. 
2006 and encompass the amount of revenue from the 
fiscal year ending June 30, 2006: and 
2. 
Final traD§fer. 
The 
final 
transfer must 
occur 
by 
October 1, 
2007 and encompass the amount of revenue from the 
fiscal year ending June 30, 2007. 
Sec. QQQQ-4. Appropriations and allocations. 
appropriations and allocations are made. 
The 
following 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPAR"l'MENT OF 
SENATE AMENDMENT 
... ~. 
':I-", 
~~~~'~ 
SENATE AMENDMENT :T.. to COMMITTEE 
AMENDMENT 
.. A" to H. P . 
L.D. 468 
343, 
Maine Revenue Services 
0002 
Initiative: 
Provides 
funds 
for 
the 
administrative 
costs 
associated with the changes to the sales tax including funds for 
one Management Analyst II position effective July 1, 2005, 
Revenue Agent positions effective January 1, 2006 and funds for 
computer programming and notification costs. 
GERERAL FOND 
2004-05 
2005-06 
2006-07 
POSITIONS -
LEGISLATIVE COUNT 
0.000 
3.000 
3.000 
Personal Services 
$0 
$146,474 
$220,080 
All Other 
$90,000 
$31,606 
$113,316 
GENERAL FUND TOTAL 
$90,000 
$178,080 
$333,396 
Sec. QQQQ-5. Effective date. 
Those sections of this Part that 
enact 
the 
Maine 
Revised 
Statutes, 
Title 
36, 
section 
1752, 
subsection 16-A and amend Title 36, section 1752, subsection 17-B 
take effect October 1, 2005. 
That section of this Part that 
enacts Title 36, section 1811-C takes effect July 1, 2005. 
PARTRRRR 
Sec. RRRR-l. 36 MRSA §5111, sub-§l-B, as enacted by PL 1999, 
c. 731, Pt. T, §3, is amended to read: 
1-B. 
Sinq1e individuaIs and married persons fi1inq separate 
returns; tax years beqinninq 2002 and unti1 2006. 
For tax years 
beginning on or after January 1, 2002 but before January I. 2006, 
for 
single 
individuals 
and 
married 
persons 
filing 
separate 
returns: 
If Maine Taxable income is: 
Less than $4,200 
At least $4,200 but 
less than $8,350 
At least $8,350 but 
less than $16,700 
$16,700 or more 
The tax is: 
2% -of the Maine 
taxable income 
$84 plus 4.5% of 
the excess over 
$4,200 
$271 plus 7~o of 
the excess over 
$8,350 
$856 plUS 8. 5~o 
SENATE AMENDMENT 
.~~ 
.. 
";)-
SENATE 
AMENDMENT ~ 
to COMMITTEE 
AMENDMENT "A" to H.P. 
L.D. 468 
343, 
of the excess 
over $16,700 
Sec. RRRR-2. 36 MRSA §5111, sub-§l-C is enacted to read: 
1-C. 
Sing1e individuals and married persons fi1ing sgparate 
returns; tax rears beginning 2006. 
For tax years beginning on or 
after January I. 2006. for single individuals and married persons 
filing separate returns: 
If Maine Taxable income is: 
Less than $4.450 
At least $4,450 but 
less than $8,850 
At least $8,850 but 
less than $17,700 
$17,700 or more 
The tax is: 
2°-& of the Maine 
taxable income 
$89 plus 4.5% of 
the excess over 
$4,450 
$287 plus 7"'0 of 
the excess over 
$8,850 
$907 plus 8"'0 
of the excess 
oyer $17,700 
Sec. RRRR-3. 36 MRSA §5111, sub-§2-B, as enacted by PL 1999, 
c. 731, Pt. T, §5, is amended to read: 
2-B. 
Heads of househo1ds; tax years beqinninq 2002 
and 
unti1 2006. 
For tax years beginning on or after January 1, 2002 
but before January 1, 2006, for unmarried individuals or legally 
separated individuals who qualify as heads of households: 
If Maine Taxable income is: 
Less than $6,300 
At least $6,300 but 
less than $12,500 
At least $12,500 but 
less than $25,050 
$25,050 or more 
The tax is: 
2% of the Maine 
taxable income 
$126 plus 4.5"'0 
of the excess 
over $6,300 
$405 plus 7"'0 of 
the excess over 
$12,500 
$1,284 plus 8.5% 
of the excess 
SENATE AMENDMENT 
II"> 
~~~. 
~'~~'\ ::...~ 
SENATE AMENDMENT :-f" to COMMITTEE 
AMENDMENT 
"A" to H.P. 
L.D. 468 
343, 
over $25,050 
Sec. RRRR-4. 36 MRSA §5111, sub-§2-C is enacted to read: 
2-C. 
Beads of households: tax years beginning 2006. 
For 
tax years beginning on or after January 1. 2006, for unmarried 
individuals or legally separated individuals who qualify as heads 
of households: 
If Maine Taxable income is: 
Less than $6,650 
At least $6,650 but 
less than $13,250 
At least $13,250 but 
less than $26,600 
$26,600 or more 
The tax is: 
2% of the Maine 
taxable income 
$133 plus 4.5°'1> 
of the excess 
oyer $6,650 
$430 plus 7% of 
the excess over 
$13,250 
$1. 365 plus 8% 
of the excess 
over $26,600 
Sec. RRRR-5. 36 MRSA §5111, sub-§3-B, as enacted by PL 1999, 
c. 731, Pt. T, §7, is amended to read: 
3-B. 
Individuals· filing married joint return or surviving 
spouses; tax years beginning 2002 and until 2006. 
For tax years 
beginning on or after January 1, 2002 but before January 1, 2006, 
for individuals filing married joint returns or surviving spouses 
permitted to file a joint return: 
If Maine Taxable income is: 
Less than $8,400 
At least $8,400 but 
less than $16,700 
At least $16,700 but 
less than $33,400 
$33,400 or more 
The tax is: 
2% of the Maine 
taxable income 
$168 plus 4.5% 
of the excess 
over $8,400 
$542 plus 7°'1> of 
the excess over 
$16,700 
$1,711 plus 8.5% 
of the excess 
SENATE AMENDMENT 
~ 
~ "§" 
?~ 
-:~\~';:2;~ 
SENATE 
AMENDMENT :-r.. to COMMITTEE 
AMENDMENT 
"A" to H. P . 
L.D. 468 
343, 
over $33,400 
Sec. RRRR-6. 36 MRSA §Slll, sub-§3-C is enacted to read: 
3-C. 
Individuals filing married joint return or surviving 
spouses; tax years beginning 2006. 
For tax years beginning on or 
after January 1, 
2006, 
for 
individuals filing married joint 
returns or surviving spouses permitted to file a joint return: 
If Maine Taxable income is: 
Less than $8,900 
At least $8,900 but 
less than $17,700 
At least $17,700 but 
less than $35,450 
$35,450 or more 
The tax is: 
2% of the Maine 
taxable income 
$574 plus 4.5°~ 
of the excess 
over $8,900 
$574 plus 7~o of 
the excess over 
$17,700 
$1, 817 plus 8~o 
of the excess 
over $35,450 
Sec. RRRR-7. 36 MRSA §5122, sub-§l, 1fW, as enacted by PL 
2003, c. 705, §9, is repealed. 
Sec. RRRR-S. 36 MRSA §S126, 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 but before January 1, 2006, 
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 tax years beginning on or after 
January 1, 2006, a resident individual is allowed an amount egual 
SENATE AMENDMENT 
".. 
, ... h~e 
1,,\'''' 
--:~~~..:!. 
SENATE AMENDMENT :T. to COMMITTEE 
AMENDMENT 
"A" to H. P . 
L.D. 468 
343, 
to the personal exemption amount determined under the Code, 
Section 151 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. 
Sec. RRRR·9. 36 MRSA §5403, as repealed and replaced by PL 
1999, c. 731, Pt. T, §10 and affected by §ll, is amended to read: 
§5403. Annua1 adjustments for inflation 
Beginning 
in 
2002, 
and 
each 
subseque.nt 
calendar 
year 
thereafter, on or about September 15th, the State Tax Assessor 
shall multiply the cost-of-living adjustment for taxable years 
beginning in the succeeding calendar year by the dollar amounts 
of the tax rate tables specified in section 5111, subsections 
I-B r -6-S-aBe-i-B l-C, 2-C and 3-C. 
If the dollar amounts of each 
rate bracket, 
adjusted by application of 
the 
cost-of-living 
adjustment, 
are not multiples of $50, 
any increase must be 
rounded 
to 
the 
next 
lowest 
multiple 
of 
$50. 
If 
the 
cost-of-living adjustment for any taxable year is 1.000 or less, 
no adjustment may be made for that taxable year in the dollar 
bracket amounts of the tax rate tables. 
The assessor shall 
incorporate such changes into the income tax forms, instructions 
and withholding tables for the taxable year. 
Sec. RRRR·I0. Application. 
This Part applies to tax years 
beginning on or after January 1, 2006. 
PARTSSSS 
Sec. SSSS·l. Expansion of application of sales tax. 
The Joint 
Standing Committee on Taxation, no later than May 2, 2005, shall 
review the exemptions and exclusions from the state sales and use 
tax and the fee imposed pursuant to the Maine Revised Statutes, 
Title 36, section 4902, subsection 1 and hold public hearings to 
determine which exemptions and exclusions should be repealed or 
what services or goods should be taxed to balance the loss of 
revenue due to the decrease in the top income rate from 8.5% to 
8% 
in Part 
RRRR. 
The 
committee 
shall 
make 
an 
affirmative 
decision whether to retain the expansion of the sales and use tax 
to support services proposed in Part QQQQ and the fee imposed 
pursuant to Title 36, section 4902, subsection 1. 
1. 
Legislation. 
The Joint Standing Committee on Taxation 
shall 
report out 
a 
bill 
no 
later 
than 
May 
10, 
2005 
that 
implements the recommendations of the committee. 
The committee 
may retain the expansion of the sales and use tax to support 
services or replace any of the items defined as support services 
pursuant to the Maine Revised Statutes, Title 36, section 1752, 
SENATE AMENDMENT 
".. 
/:"~~.Jb 
'-/'. ... ·,2 
SENATE AMENDMENT 
L.D. 468 
to COMMITTEE 
AMENDMENT 
"A" to H.P. 343, 
subsection l6-A with the expansion of the sales and use tax to 
other goods or services as long as the stream of revenue from the 
expansion or exemption repeal is reasonably equivalent to the 
annual revenue lost from the income tax changes proposed in Part 
RRRR. 
The changes in the application of the sales and use tax 
must take effect no later than October 1, 2005. 
2. 
Possible 
services 
and 
qoods. 
The 
expansions 
from 
current sales and use tax law that the Joint Standing Committee 
on Taxation may consider include: 
A. 
Separately charged labor service fees; 
B. 
Grocery staples; 
C. 
Coal, oil, gas, electricity and water for home use; 
D. 
Funeral services; 
E. 
Vending machine sales; 
F. 
Trade-in credits; 
G. 
Personal 
care 
services 
by 
barbers, 
beauticians, 
manicurists, 
tattoo 
artists, 
body 
piercers, 
massage 
therapists, 
reflexologists, 
tanning salons, 
exercise 
and 
fitness centers and dance instructors; 
H. 
Escort and personal introduction services; 
I. 
Flower 
and balloon delivery 
and other 
services 
to 
demonstrate personal appreciation; 
J. 
Amusements, 
including 
sports 
and 
recreational 
activities, rental of recreational equipment and facilities, 
cable and satellite television services, theaters and public 
entertainment, commercial amusements, commercial participant 
amusements, 
sightseeing, 
spectator 
sports 
and 
arcades; 
tickets for movies, 
plays, theaters, concerts, fairs and 
sporting events; 
and fees 
for arcades, 
amusement rides, 
water slides, golf courses, 
bowling alleys, 
pool halls, 
skating rinks, ski lifts, rafting and boat trips and guide 
service; 
K. 
Taxidermy services; 
L. 
Flight and driving instruction; 
M. 
Rentals for recreational purposes of boat moorings, boat 
slips and docks; 
Page ll-LR2149(6) 
SENATE AMENDMENT 
~~"':.. 
..... 
ro.: .. _. 
<;:' ~,... 
~~\'" 
SENATE 
AMENDMENT 
L.D. 468 
,T, to COMMITTEE AMENDMENT "A" to H.P. 343, 
N. 
Cleaning, repair, moving, rental, storage, maintenance 
and 
improvement 
of 
personal 
property, 
including 
motor 
vehicles, 
watercraft, 
boat 
moorings, 
snowmobiles, 
all-terrain 
vehicles, 
appliances, 
bicycles, 
jewelry, 
cameras, 
timepieces, 
firearms, 
musical 
instruments, 
electronic and electrical goods, furniture, rugs, upholstery 
and antiques; 
O. 
Pet grooming and kennel services; 
P. 
Home services, including painting, papering and interior 
decorating; swimming pool installation, repair, cleaning and 
maintenance; 
locksmith, 
alarm and security services; 
and 
disinfection and pest extermination or control; 
Q. 
Cable and satellite television fees and Internet service 
fees; 
R. 
Contracted services for business administrative support; 
facilities 
support; 
employment 
staffing; 
transcription; 
travel 
arrangement 
and 
reservations; 
investigation 
and 
security; maintenance, management and repair to commercial 
buildings 
and dwellings; 
and collection, 
management 
and 
remediation of waste; 
S. 
Advertising services in intrastate media; 
T. 
Sales of equipment to broadcasters; and 
U. 
Sales of newspapers, books and magazines. 
3. 
Criteria for repeal or expansion. 
In determining which 
exemptions to repeal or which goods or services to apply the 
sales and use tax to, the Joint Standing Committee on Taxation 
shall consider the following criteria: 
A. 
Reducing the volatility of the sales and use tax revenue 
stream; 
B. 
Minimizing the regressive impact of the sales and use 
tax on the poor; 
C. 
Avoiding the loss of sales, services or businesses to 
other jurisdictions; 
D. 
Allocating appropriate tax burdens to sales and use tax 
payers from out of state; 
E. 
Clarity and ease of administration; 
SENATE AMENDMENT 
SENATE AMENDMENT T. to COMMITTEE 
AMENDMENT "A" 
L.D. 468 
F. 
Fairness and parity among taxpayers; 
to H.P. 
G. 
Avoidance of pyramiding and duplication of taxation; 
H. 
Conserving energy; and 
I. 
Counteracting sprawl. 
PARTTTTT 
343, 
Sec. TTTT·l. 7 MRSA §2954, sub·§l, as amended by PL 1999, c. 
679, Pt. B, §3 and affected by §14, is further amended to read: 
1. 
Coumission 
empowered 
to 
establish 
prices; 
public 
hearinq. 
The commission is vested with the power to establish 
and change, after investigation and public hearing, the minimum 
wholesale and retail prices to be paid to producers, dealers and 
stores 
for 
milk 
received, 
purchased, 
stored, 
manufactured, 
processed, distributed or otherwise handled within the State. 
The 
commission 
shall 
hold 
a 
public 
hearing 
prior 
to 
the 
establishing or changing of such minimum prices. The commission 
may proceed, however, under the emergency rule-making provisions 
of Title 5, section 8054 without making findings of emergency 
when the only changes to be made in the minimum prices are to 
conform with the orders of any federal or other agency duly 
authorized by law to establish or negotiate producer prices 9F ..... 
are to respond to other conditions affecting prevailing Class I, 
Class II and Class III prices in southern New England or are to 
reflect the milk handling fee levied and imposed by Title 36, 
chapter 721. 
Title 5, 
section 8054, 
subsection 
3, 
the 
2nd 
sentence, does not apply to minimum prices adopted under the 
FFeV~9QS--Sea~eaee this subsection. 
Due notice of the public 
hearing must be given by publishing notice as provided in Title 
5, chapter 375. 
The commission shall hold such a public hearing 
not less frequently than once every 12 
months 
to determine 
whether the minimum wholesale and retail prices then established 
should be changed. In addition to the data received through the 
implementation of the information gathering procedures of its 
rules as a basis for its determinations, the commission shall 
solicit and 
seek 
to 
receive oral 
and written testimony at 
hearings to determine whether the minimum wholesale and retail 
prices 
then 
established 
should 
be 
changed 
and 
whether 
the 
proposed 
m~n~mum wholesale 
and 
retail 
prices 
are 
just 
and 
reasonable. 
Sec. TTTT·2. 7 MRSA §2954, sub·§2,~, as amended by PL 1995, 
c. 2, §2, is further amended to read: 
SENATE AMENDMENT 
""~<>. . 
. .... 
e: ,?~'. 
',' 
SENATE 
AMENDMENT :-r: to COMMITTEE 
AMENDMENT "A" 
L.D. 468 
to H.P. 
343, 
B. 
The minimum wholesale prices paid to dealers must be 
established to reflect the lowest prices at which milk 
purchased from producers in this State at minimum prices in 
the 
State 
can 
be 
received, 
processed, 
packaged 
and 
distributed within the 
State at 
a 
just and 
reasonable 
return, and in addition must include the amount of any 
~aH 
Qe~el'HliBeQ fee levied and imposed by Title 36, chapter H9 
721. 
Sec. TTTT-3. 7 MRSA §2954, sub-§13, as amended by PL 1995, c. 
2, §3, is further amended to read: 
13. 
Report 
to 
State 
Tax 
Assessor. 
The 
Maine 
Milk 
Commission shall report before the first of each month to the 
State Tax Assessor the basic price of milk established for that 
month as defined in Title 36, chapter +~9 721. 
Sec. TTTT-4. 36 MRSA c. 721 is enacted to read: 
CHAPTER 721 
MILK BARDLIBG FEE 
§4901. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Fee period. 
"Fee period" means the period beginning on 
the Sunday closest to the first day of the month and continuing 
through the Saturday prior to the Sunday closest to the first day 
of the subseguent month. 
2. 
Band1er. 
"Handler," 
with 
respect 
to 
a 
particular 
container of packaged milk, means the wholesale handler or, if 
none, the retail handler. 
3. 
Milk. 
"Milk" has the 
same meaning as in Title 7, 
section 2951, subsection 6. 
4. 
Packaged milk. 
"Packaged milk" means milk that has been 
processed and placed in containers for ultimate sale to consumers. 
5. 
Person. 
"Person" 
means 
an 
individuaL 
partnership, 
firm, corporation, association or other unit and the State and 
all political subdivisions or agencies of the State. 
6. 
Retail handler. 
"Retail handler" means 
a person who 
handles packaged milk in this State that is next sold in this 
SENATE AMENDMENT 
~~.:::~. 
"'< ,'\ 
0;:\> 
SENATE AMENDMENT ~. to COMMITTEE 
AMENDMENT 
"A" to H.P. 
L.D. 468 
343, 
State subject to the minimum retail prices established pursuant 
to Title 7, chapter 603. 
7. 
Wholesale handler. 
"Wholesale handler" means a person 
who handles packaged milk in this State that is next sold in this 
State subject to the minimum wholesale prices paid to dealers 
established pursuant to Title 7. chapter 603. 
§4902. 
Milk handling fee 
1. 
Fee. 
A 
fee 
is 
levied 
and 
imposed 
at 
the 
rate 
established in subsection 2 
on the handling in this State of 
packaged milk for sale in this State. 
With respect to the 
handling in this State of a particular container of packaged milk 
for sale in this State. the fee must be paid by the handler. 
There is no fee on the handling in this State of packaged milk 
for sale in containers of less than one quart or 20 or more 
quarts in volume, or packaged milk that is sold to an institution 
that is owned and operated by the State or the Federal Government. 
2. 
Rate per gpart. 
The fee levied under this chapter is 5¢ 
per quart. 
For a container other than a quart. the fee is computed on a 
quart-equivalent basis. 
3. 
Fee calculation. 
Handlers shall pay the fee for each 
fee period on all milk subject to the fee sold during the fee 
period; 
A. 
Subject to the m1n1mum wholesale prices paid to dealers 
established by the Maine Milk Commission pursuant to Title 
7, chapter 603: or 
B. 
Not subject to minimum wholesale prices paid to dealers 
but subject to minimum retail prices established by the 
Maine Milk Commission pursuant to Title 7. chapter 603. 
In calculating the amount of packaged milk handled for sale in 
this State during each fee period, the handler shall deduct from 
that amount any packaged milk returned to the handler during that 
fee period. 
4. 
Fee: additional. 
The fee imposed and collected under 
this chapter is in addition to any taxes imposed or collected 
under any other law of the State. 
5. 
Records, 
reports 
and administration. 
Every 
handler 
subject to the fee imposed under subsection 1 shall register with 
the assessor within 5 business days of becoming subject to the 
SENATE AMENDMENT 
~ 
.~~~ 
,"' i11 
~" 
SENATE AMENDMENT .'T. to COMMITTEE 
AMENDMENT 
"A" to H. P • 
L.D. 468 
343, 
fee and annua11y thereafter on forms provided by the assessor. 
The list of registered handlers must be available to the public. 
By the 25th dgy of each calendar month. every handler subject to 
the fee imposed under subsection 1 sha11 report to the assessor 
the quantity of packaged milk handled in this State for sale in 
this State during the preceding fee period. 
the quantity of 
packaged milk handled that was subject to the milk handling fee 
and any other information the assessor determines necessary or 
useful in the administration of this chapter and enforcement of 
the milk handling fee. 
6. 
Due dates. 
Handlers sha11 pay to the assessor the fee 
due for the preceding fee period not later than the 25th dgy of 
each calendar month and submit the information required by the 
assessor on the forms provided. 
7. 
Presumption. 
In a proceeding against a retail handler 
for collection of the fee with respect to a particular container 
of packaged milk. there is a rebuttable presumption that that 
retail handler did not purchase that container in a transaction 
subject 
to 
the 
m~n~mum wholesale 
prices 
paid 
to 
dealers 
established pursuant to Title 7. chapter 603. 
The burden is on 
the retail handler to show that the retail handler purchased that 
container of packaged milk in a transaction subject to minimum 
wholesale prices paid to dealers established pursuant to Title 7. 
chapter 603. 
8. 
General Fund. 
The assessor sha11 immediately pay a11 
funds received from the milk handling fee to the Treasurer of 
State to be deposited in the General Fund. 
The funds may not be 
dedicated to 
a 
particular purpose 
and 
may be 
used for all 
purposes of State Government. 
Sec. TTTI -5. 
Appropriations and allocations. 
appropriations and allocations are made. 
ADMIBISTRATIVE AND FINANCIAL 
SERVICES, DEPAR'DIERT OF 
Bureau of Revenue Services 
The 
following 
Initiative: 
Provides funds to cover the initial costs of the 
Bureau of Revenue Services to administer the milk handling fee. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$10,000 
$10,000 
2006-07 
$0 
$0 
SENATE AMENDMENT 
-
q'~'~>' 
's' 
~':'\i<" 
SENATE AMENDMENT ,T" to COMMITTEE 
AMENDMENT "A" to H.P. 
L.D. 468 
343, 
Sec. TTTT·6. Effective date. 
This Part takes effect January 1, 
2006. 
PARTUUUU 
Sec. UUUU·l. Appropriations and allocations. 
appropriations and allocations are made. 
PUBLIC SAFETY, DEPAJr.L'MENT OF 
STATE POLICE 
0291 
The 
following 
Initiative: 
Appropriates 
and deallocates 
funds 
to achieve 
a 
funding ratio for the State Police program of 40% 
from the 
General 
Fund and 
60% 
from 
the 
Highway 
Fund by fiscal year 
2006-07. 
The unallocated amounts must be distributed through the 
use 
of 
financial 
orders 
by 
line 
category to proportionally 
reflect the new funding ratios. 
GENERAL FUND 
Unallocated 
GENERAL FUND TOTAL 
HIGHWAY FUND 
Unallocated 
HIGHWAY FUND TOTAL 
Further amend the amendment by 
any 
nonconsecutive 
Part 
letter 
or 
consecutively. 
SUMMARY 
2005-06 
2006-07 
$2,871,000 
$2,250,000 
$2,871,000 
$2,250,000 
2005-06 
2006-07 
($2,871,000) 
($2,250,000) 
($2,871,000) 
($2,250,000) , 
relettering or renumbering 
section 
number 
to 
read 
This amendment decreases the 
through the Maine Municipal Bond 
amount 
Bank by 
of the bonds 
$270,000,138. 
issued 
This 
amendment removes the transfer of funds to the debt service fund 
from the fund to supplement harness racing purses, 
the Sire 
Stakes Fund, the Agricultural Fair Support Fund, 
the Fund to 
Encourage Racing at Maine's Commercial Tracks and the Fund to 
Stabilize Off-Track Betting Facilities. 
Committee Amendment "A" amends the essential programs and 
services funding formula for school administrative districts and 
community school districts that have more than 1, 250 resident 
pupils in the school district by requiring that the per-pupil 
transportation costs for these school districts may not be less 
SENATE AMENDMENT 
~ 
1~\:<~~ 
"\ 
\:~~~; 
-
SENATE AMENDMENT 
" J" to COMMITTEE 
AMENDMENT 
"A" to H.P. 343, 
L.D. 468 
than 90'%. of the established costs for the most recent fiscal 
year. 
This 
amendment 
further 
provides 
that 
such 
a 
school 
district must receive the full transition adjustment specified in 
Public Law 2005, chapter 2. 
The amendment removes language in Committee Amendment "A" 
that extends the nonconformity with federal law of Section 179 of 
the United States Internal Revenue Code of 1986 until tax years 
beginning on or after January 1, 2008, thus bringing Maine tax 
law into conformity with federal law beginning with tax year 2006. 
The amendment removes language in Committee Amendment "A" 
that 
extends 
the 
nonconformity 
with 
federal 
law 
of 
the 
deductibility of the child and dependent care expenses, 
thus 
bringing Maine tax law into conformity with federal law beginning 
with tax year 2006. 
The amendment adds a Part QQQQ, which imposes a temporary 1~ 
increase in the state sales and use tax, beginning July 1, 2005 
and ending November 1, 2006. 
Part QQQQ also expands the sales 
and use tax to apply to support services for businesses such as 
administrative and cleaning services. 
The expansion of the sales 
and use tax to support services takes effect October 1, 2005. 
Except for 5'%. of the surcharge imposed on liquor sold in licensed 
establishments and on the rental of living quarters in a hotel, 
rooming house or tourist camp, the entire amount of revenue from 
the surcharge is deposited in the General Fund. 
The amendment adds 
a Part RRRR, 
which changes the Maine 
Income Tax Law in the following ways. 
1. 
It decreases the top 
beginning with tax year 2006. 
State Tax Assessor is required 
years of indexing. 
income tax rate from 8. 5~ to 8°-& 
Due to inflation indexing, the 
to adjust the tax brackets for 2 
2. 
It increases the personal exemption to match the federal 
personal exemption. 
The amendment adds a Part SSSS, which requires the Joint 
Standing Committee on Taxation to study the current statutory 
exemptions from the sales and use tax and hold public hearings to 
determine which exemptions should be eliminated or which goods 
and services should be subject to the sales and use tax to offset 
the decrease in revenue from the lowering of the top income tax 
rate provided for in this amendment. 
The committee is required 
to submit a bill by May 10, 2005 with changes effective October 
1, 
2005 
for 
any 
recommended 
sales 
and 
use 
tax 
exemption 
eliminations or expansions. 
SENATE AMENDMENT 
".... 
.~\ ,~~\,~~ .. 
·f , .... 
) 
SENATE AMENDMENT T 
to COMMITTEE 
AMENDMENT "A" to H. P • 
L.D. 468 
343, 
The amendment adds a Part TTTT, which reestablishes the milk 
handling fee, which was in effect in 1995 and 1996, at the rate 
of 5¢ per quart on milk handled for retail sale in Maine. 
The 
fee is paid on a monthly basis by the wholesale handler or, if 
there is none, by the retail handler. 
Proceeds of the fee are 
paid to the General Fund for general purposes of State Government 
and are not dedicated to any particular purpose. 
The 
amendment 
adds 
a 
Part UUUU, 
which appropriates 
and 
deal locates funds to achieve a funding ratio for the State Police 
program of 40'1& from the General Fund and 60'lt) from the Highway 
Fund by fiscal year 2006-07 and to offset the loss of Highway 
Fund savings from maintaining the shortened amortization schedule 
for the unfunded liability of the Maine State Retirement System. 
FISCAL NOTE REQUIRED 
See attached) 
SPONSORED BY: 
(Senator P. MIL 
COUNTY: 
Somerset 
SENATE AMENDMENT 
Approved: 03/29/05 ~ac:. 
LD468 
LR2149(06) 
An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, 
General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper 
Operations of State Government for the Fiscal Years Ending June 30, 2006 and June 30, 2007 
Fiscal Note for Senate Amendmen;:t: to Committee Amendment A 
Net Cost (Savings) 
General Fund 
Highway Fund 
Appropriations/Allocations 
General Fund 
Highway Fund 
Revenue 
General Fund 
Transfers 
General Fund 
Fiscal Detail and Notes 
Sponsor: Sen. Mills 
Fiscal Note Required: Yes 
Fiscal Note 
2004-05 
$90,000 
$90,000 
2005-06 
($9,022,884) 
($2,871,000) 
$213,651,906 
($2,871,000) 
$183,491,153 
$39,183,637 
2006-07 
($372,791) 
($2,250,000) 
$116,600,774 
($2,250,000) 
$53,195,970 
$63,777,595 
This amendment will increase the General Fund cost of the bill by $90,000 in fiscal year 2004-05, but will decrease the 
General Fund cost of the bill by $9,022,884 in fiscal year 2005-06 and $372,791 in fiscal year 2006-07. Based on the 
estimated year-end balances, this amendment maintains a balanced budget for the 2006-2007 biennium. 
This amendment will decrease the Highway Fund cost of the bill by $2,871,000 in fiscal year 2005-06 and $2,250,000 
in fiscal year 2006-07. 
LR2149(6) - Fiscal Note - Page 1 of 1