An Act To Rebalance Maine's Tax Code
Maine Legislature, Session 122, LD 1595
Committee Amendment CA_A_H698 (House)
Amends: 36 MRSA §5219-N, 36 MRSA §5124-A, 36 MRSA §5126, 36 MRSA §5111, 36 MRSA §5111-C, 36 MRSA §5122, 36 MRSA §683, 36 MRSA §620, 36 MRSA §6207, 36 MRSA §1752, 36 MRSA §1760, 36 MRSA §1812, 36 MRSA §2015, 36 MRSA §2551, 36 MRSA §2552, 5 MRSA §13090-K, 36 MRSA §1811, 28-A MRSA §1652, 36 MRSA §4641-A, 36 MRSA §4641, 20-A MRSA §15671, 20-A MRSA §15671-A, 20-A MRSA §15689

COMMITTEE AMENDMENT A" to H.P. 1131, L.D. 1595, Bill, "An 
Act To Rebalance Maine's Tax Code" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'PART A 
Sec. A-I. 36 MRSA §5219-N, sub-§l, as amended by PL 2003, c. 
390, §48, is repealed and the following enacted in its place: 
1. 
Generally. 
Except 
as 
provided in subsection 2, 
an 
individual in a category described in this subsection is allowed 
a credit egual to the tax otherwise imposed orl that individual by 
this Part. 
In no case may this credit reduce the Maine income 
tax to less than zero. 
An individual gualifies for the credit 
described in this section if: 
A. 
The individual is filing as a single individual or is 
married and filing separately and the individual's Maine 
taxable 
income 
determined 
as if the 
individual 
were 
a 
resident individual for the entire year is $4,000 or less: 
B. 
The individual is filing a return as a head of household 
and the taxable income on the return determined as if the 
individual were a resident individual for the entire year is 
$6,000 or less: or 
C. 
The individual is filing a married joint return and the 
taxable 
income 
on 
the 
return 
determined 
as 
if 
the 
individuals were resident individuals for the entire year is 
$8,000 or less. 
Page l-LR2080(2) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT H" to H.P. 1131, L.D. 1595 
Sec. A-2. 
Application. 
This 
Part 
applies 
to 
tax 
years 
beginning on or after January 1, 2006. 
PARTB 
Sec. B-1. 36 MRSA §5124-A, first 11, as amended by PL 2005, c. 
12, Pt. P, §5, is further amended to read: 
The standard deduction of a resident individual is equal to 
the standard deduction as determined in accordance with the Code, 
Section 63, except that for tax years beginning after 2002 but 
before 2006, the Code, Section 63(c)(2) must be applied as if the 
basic standard deduction is $5,000 in the case of a joint return 
and a 
surviving spouse and $2,500 in the case of 
a 
married 
individual filing a separate return. 
PARTe 
Sec. C-l. 36 MRSA §5126, first 11, as amended by PL 2001, c. 
583, §16, is further amended to read: 
~eF-~~~~~-yeaFS-Be~4BB4B~-~~F-af~e~-~~-~r-~gg8 
g~~-~~~-~~-lT--~r-~-~e6iaeB~--~~~~-~~-a±±ewea 
$6T4QQ-~e~-e~€a-~~~~~~-~~-~~~~-~~p&F~~-e~a1ms-Ee~ 
~ae--t~~~-~--fe~--~~~-~~-~aH-~~r-~~-~ae 
~aHpayeF-46-€~~4~Q-~-~~-~~~F-Fe~~F~r--~eF-iBeeme 
~aH--y&&F&-~~~-~-e~--af~e~-~&~aFY-~r-~~-~~~--gefete 
JaB~aFY-*T--2.Q.Q.Q..,--a--l"-e&i~--i-nd4~--i-s--a-~J:G.we.d.-$-6-r1-~-~eF-eaea 
eHemp~ieR-~~-~a~-1B41¥1eaal-~~~~-€Ja4m6--~F-~~-~aHag±e 
yea~--~--~~~--iBeeme-~~-~~~€£~--aR±e&&-~~-~~~--is 
e±aimeQ-~-a--aepeReeR~-~~~-te~~FBT For income tax years 
beginning on or after January 1, 2000 but befQre January I. 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 
Jgnuary I. 2006. a resident individual is allowed the Same amount 
allowed under Section 151 of the Code for each exemption that the 
individual properly claims 
for 
the 
tgxable year for 
federal 
income 
tax 
purposes. 
unless 
the 
taxpayer 
is 
claimed 
as 
a 
dependent on another return. 
PARTD 
Sec. D-l. 36 MRSA §5111, first 11, as amended by PL 1999, c. 
731, Pt. T, §1, is further amended to read: 
A tax is imposed Eet-ea€a--t:-cHt·ab·le-~--beg-i-nn-ing--G-&-e-F-aEEet 
JaR~aFY-+r-6QQQT on the Maine taxable income of every resident 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "!:;' to H.P. 1131, L.D. 1595 
individual of this State. 
The amount of the tax is determined as 
provided in this section, except that the rates provided in this 
section for tax years beginning on or after January 1, 2006 must 
be adjusted as provided by section 5ll1-C. 
Sec. D-2. 36 MRSA §5111-C is enacted to read: 
§Slll-C. 
Reductions in individual income tax rates 
1. 
Riilte reduction in 2006. 
For tax years beginning in 
2006, the 8. 5C!-o tax rates contained in section 5111, subsections 
S, 2-S and 3-S are reduced to 8.25%. 
..,~ 
2. 
Materials. 
The State Tax Assessor shall incorporate the 
changes arising from this section into the forms, instructions 
and withholding tables for the ~ppropriate tax years. 
PARTE 
Sec. E-l. 36 MRSA §5122, sub.§l, fW, as amended by PL 2005, c. 
12, Pt. P, §3, is repealed. 
Sec. E·2. 
Application. 
This 
Part 
applies 
to 
tax 
years 
beginning on or after January 1, 2006. 
PARTF 
Sec. F·l. 36 MRSA §683, sub·§§3 and 4, as amended by PL 2005, 
c. 2, Pt. F, §3 and affected by §5, are further amended to read: 
3. 
Effect on state valuation. 
Fi:€t:y-~~-.e-f--sae The 
just value of homesteads exempt under this subchapter must be 
included in the annual determination of state valuation under 
sections 208 and 305. 
4. 
Property tax rate. 
FHsY--pe-£-€-e.nt.--o-f.-t:ae The value of 
homestead exemptions under this subchapter must be included in 
the total municipal valuation used to determine the municipal tax 
rate. 
The municipal tax rate as finally 
determined may 
be 
applied to only the taxable portion of each homestead qualified 
for that tax year. 
Sec. F ·2. 36 MRS A §685, sub·§2, as amended by PL 2005, c. 2, 
Pt. F, §4 and affected by §5, is further amended to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A" to H.P. 1131, L.D. 1595 
2. 
Entitlement to reimbursement by State; calculation. 
A 
municipality that has approved homestead exemptions under this 
subchapter may recover from the State §G% 100% of the taxes lost 
by reason of the exemptions upon proof in a form satisfactory to 
the bureau. 
The bureau shall reimburse the Unorganized Territory 
Education and Services Fund for §G% 100% of taxes lost by reason 
of the exemption. 
Sec. F-3. Application. 
This Part applies to property tax 
valuations determined on or after April 1, 2006. 
PARTG 
ill' 
Sec. G-I. 36 MRSA §620I, sub-§I, as amended by PL 2005, c. 2, 
Pt. E, §l and affected by §§7 and 8, is further amended to read: 
1. 
Benefit base. 
"Benefit base" 
means 
property 
taxes 
accrued or rent constituting property taxes accrued. 
In the case 
of 
a 
claimant 
paying 
both 
rent 
and 
property 
taxes 
for 
a 
homestead, benefit base means both property taxes accrued and 
rent constituting property taxes accrued. 
The benefit base may 
not exceed 
$6TGGG--*l:'---6-i~~--he\o1sehe:lEls--an:d---$4-,.Q..Q.Q--fel' 
he\o1sehe:lEls-w~th-6-el'-~el'e-~e~gel'S $5,000. 
Sec. G·2. 36 MRSA §6207, sub-§I, 'lrA·I, as amended by PL 2005, 
c. 2, Pt. E, §4 and affected by §§7 and 8, is further amended to 
read: 
A-1. 
Fifty percent of that portion of the benefit base that 
exceeds 4% but does not exceed 8% of income plus 100% of 
that portion of the benefit base that exceeds 8% of income 
to a maximum payment of $6TGGG $3,000. 
Sec. G·3. Application. 
This Part applies tro applications for 
benefits filed on or after August 1, 2006. 
PARTH 
Sec. H-I. 36 MRSA §I7S2, sub-§I-H is enacted to read: 
I-B. 
Amusement and recreational services. 
"Amusement and 
recreational services" means: 
A. 
All services provided by health clubs, fitness clubs, 
athletic clubs and personal fitness trainers and coaches, 
other than the sale of meals 
and the rental of living 
g;uarters; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A· to H.P. 1131, L.D. 1595 
B. 
Admission to fairs, including state fairs, county fairs, 
agricultural fairs and book fairs; 
C. 
Admission to sporting events, including horse races; 
D. 
Admission to exhibition shows that are open to the 
general public, including flower and garden shows , 
animal 
shows; and auto and watercraft shows; 
E. 
Admission to motion pictures, concerts. plays. musicals. 
ballets. operas. 
comedy shows. puppet shows. magic shows, 
carnivals. circuses and theatrical productions; 
~ 
F. 
Admission to dance halls. amusement parks. theme parks, 
miniature golf courses. snow parks and water parks; 
G. 
All services. 
including lessons. 
provided by flight 
centers. 
marinas. 
golf courses. 
driving ranges, 
shooting 
ranges. alpine ski areas. cross-country ski touring centers, 
ice skating rinks. roller skating rinks. 
dance halls and 
centers. 
bowling 
centers. 
swimming 
pools. 
racetracks. 
billiard parlors. riding stables. whitewater rafting centers 
and recreational athletic facilities of any kind. other than 
the sale of meals and the rental of living guartersi 
H. 
Services provided by. 
and the charging of fees 
for 
admission 
to 
or 
membership 
in. 
commercial 
recreational 
membership 
organizations. 
including 
health 
and 
fitness 
clubs. golf clubs. tennis clubs and country clubs. whether 
payable by annual fee or otherwise; 
I. 
Admission 
to privately 
owned 
and 
operated museums, 
planetariums. historical sites. zoological parks. zoological 
gardens. wild animal parks. petting zoos. botanical gardens 
and aguariumsi and 
J. 
Airplane. 
helicopter. 
balloon. 
dirigible. 
blimp. 
watercraft. railroad. bus and wagon rides for amusement or 
sightseeing purposes. 
Sec. H-2. 36 MRSA §1752, sub-§3-B, as amended by PL 1999, c. 
698, §1 and affected by §3, is further amended to read: 
3-B. 
Grocery 
staples. 
"Grocery 
staples" 
means 
food 
products ordinarily consumed for human nourishment. 
"Grocery staples" does not include spirituous, malt or vinous 
liquors; soft drinks, iced tea, sodas or beverages such as are 
ordinarily dispensed at bars or soda fountains or in connection 
COMMITTEE AMENDMENT 
c,.. 
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COMMITTEE AMENDMENT ·A· to H. P. 1131. L. D. 1595 
with bars or soda fountains; medicines, 
tonics, vitamins 
and 
preparations 
in liquid, 
powdered, 
granular, 
tablet, 
capsule, 
lozenge or pill form, sold as dietary supplements or adjuncts, 
except when sold on the prescription of a 
physician; water, 
including mineral bottled and carbonated waters and ice; dietary 
substitutes; candy and confections; snack food and prepared food. 
Sec. H-3. 36 MRSA §1752, sub-§§8-C and 8-D are enacted to read: 
a C. 
Personal 
property 
services. 
"Personal 
property 
services" means the alteration, cleaning, installation, repair. 
rentaL moving, restoration, storage, appraisal and maintenance 
of 
personal 
property, 
including motor 
vehicles, 
watercraft, 
snowmobiles, all terrain vehicles, appliances, bicycles, jewelry, 
cameras, 
timepieces, 
firearms, 
musical 
instruments, 
electronic 
and 
electrical 
goods, 
clothing, 
footwear, 
leather 
goods, 
furniture, 
rugs 
and 
carpets. 
"Personal 
property 
services" 
includes, but is not limited to: 
A. 
The upholstery and reupholstery of furniture: 
B. 
Same-day courier and delivery services: 
c. 
The rental of moorings, slips and docks, but only for 
noncommercial watercraft; 
D. 
Dry cleaning, laundry and clothing storage services; 
E. 
Photograph restoration and photographic film development; 
F. 
Art restoration and conservation; and 
G. 
Picture framing. 
"Personal property seryices" does not include the rental of items 
subject to a tax under chapter 358 or the interstate moving of 
furniture and other household goods. 
a-D. 
Personal services. 
"Personal services" means: 
A. 
All services provided by tanning salons, tattoo parlors, 
massage therapists and massage parlors; 
B. 
Ear and body piercing services; 
C. 
Dance instruction: 
D. 
Driving instruction; 
COMMITTEE AMENDMENT 
~~. 
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COMMITTEE AMENDMENT .. ~ 
to H.P. 1131, L.D. 1595 
E. 
Escort, dating and social introduction services; 
F. 
Flower, balloon and singing telegram delivery services; 
G. 
Pet grooming and boarding services: 
H. 
Rental of storage lockers and other self-storage space: 
I. 
Laundry and diaper services; 
J. 
Catering services; and 
K. 
Home grocery delivery service and other home delivery 
services. 
Sec. H-4. 36 MRS A §1752, sub-§9-E is enacted to read: 
E. 
Real 
property services. 
"Real 
property services" 
means the following services when provided with regard to real 
property: 
A. 
Interior 
painting, 
wallpapering, 
decorating 
and 
designing: 
B. 
Property cleaning and organizing; 
, 
C. 
Disinfection and pest extermination or control services; 
D. 
Locksmithing. alarm and security services; 
E. 
Swimming 
pool 
installation, 
repair, 
cleaning 
and 
maintenance: 
F. 
Waste management and remediation services: 
G. 
Rug and carpet installation, cleaning and repair: 
H. 
Floor maintenance. including sanding/' polishing, waxing 
and coating: 
I. 
Chimney sweeping and cleaning services: and 
J. 
Hot tub installation, repair, cleaning and maintenance. 
Sec. H-5. 36 MRSA §1752, sub-§11, ,A, as amended by PL 2005, 
c. 218, §14, is further amended to read: 
A. 
"Re tai 1 sal e" inc 1 ude s + 
.\"c""o~n""d!..,!i....l.t,:i~o,""n!..!,a!..,!l~Ji!.s.S!a"",lc.Ee,-,=s~._.=.i~n£!s..!=tcEa!..,!lo..:lo.!.Jm.!5e~n±..!<t 
lease sales and any other transfer of tangible personal 
property when the title is retained as security for the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .(J. to H.P. 1131, L.D. 1595 
payment 
of 
the 
purchase 
price 
and 
is 
intended 
to 
be 
transferred later. 
+~+-~~~~~-~~r-ia&~a~~ffiea~-JeaGe-~~~-aBY 
etae~-~~~~-~~-~~~£J€-~~~-p£epe£~y-~-tae 
t~t~e-~~-~e~aiaee-~-&eG~~i~~-~~-~~-paymeR~-~--tae 
PQ~eaase-p£4€e-a£e-~~-int~~~-&&-~~aa&~e~~ee-~ate~f 
aBe. 
+ 6 + - .s.aJ€-«--p-FG41:lGt,.s. - ~e ~ - ~ofJ.~.fH"ofJ..a.J--human- ~&&~P't-.i,.e.B- - te 
a-~~~-~~--~&&~-ta~eQ§a-¥e£4~ofJ.~-~~~h&B--se~e. 
te-.a-~~~~-t-aa»-9Q%-e~-~~~-~~p~&-~~em 
tae--~eta~~--sale--ef--taB§~Ble--pe~seBal--p~epe~ty--a~e 
e.e~~vee.-~~~-&a~&-~~~~-~~~-ma€R4BeG~---~-taH 
mQst-Be-pa~e.-By-tae-~eta~le~-te-tae-StateT 
Sec. H-6. 36 MRSA §1752, sub-§11, 1(B, as amended by PL 2005, 
c. 218, §15, is further amended to read: 
B. 
"Retail sale" does not include: 
(1) 
Any casual sale: 
(2) 
Any 
sale by 
a 
personal 
representative in the 
settlement of 
an estate, 
unless 
the sale 
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; 
(4) 
The sale, to a person engaged in the business of 
renting video media and video equipment, of video media 
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 
eHteBe.ee. 
cable 
or 
eHteBeee satellite television or radio services: or 
(7) 
The sale, to a person engaged in the business of 
renting furniture, or audio media and audio equipment, 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A .. to H.P. 1131. L.D. 1595 
of furniture, audio media or audio equipment for rental 
pursuant to a rental-purchase agreement as defined in 
Title 9-A, section 11-105. 
Sec. H·7. 36 MRSA §1752, sub·§14, llB, as amended by PL 2003, 
c. 673, Pt. V, 
§16 and affected by §29, is further amended to 
read: 
B. 
"Sale price" does not include: 
(1) 
Discounts allowed and taken on sales; 
(2) 
Allowances in cash or by credit made upon the 
return of merchandise pursuant to warranty: 
(3) 
The price of property returned by customers, when 
the full price is refunded either in cash or by credit; 
(4) 
The price received for labor or services used in 
installing or applying or repairing the property sold, 
if separately charged or stated unless the labor or 
services are taxable services as defined in subsection 
l7-B: 
(5) 
Any 
amount charged or collected, in lieu of 
a 
gratuity or tip, 
as 
a 
specifically stated service 
charge, when that amount is to be disbursed by a hotel, 
motel, restaurant or other eating establishment to its 
employees as wages: 
(6) 
The amount of any tax imposed by the United States 
on or with respect to retail sales, whether imposed 
upon 
the 
retailer 
or 
the 
consumer, 
except 
any 
manufacturers', importers', alcohol or tobacco excise 
tax: 
(7) 
The cost of transportation from the retailer's 
place of business or other point from which shipment is 
made directly to the purchaser, pr.0vided that those 
charges are separately stated and the transportation 
occurs by means of common carrier, contract carrier or 
the United States mail; 
(8) 
The 
fee 
imposed 
by 
Title 
10, 
section 
1169, 
sUbsection II: 
(9) 
The fee imposed by section 4832, subsection 1; or 
(10) 
The lead-acid battery deposit imposed by Title 
38, section 1604, subsection 2-B. 
COMMITTEE AMENDMENT 
~~. 
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COMMITTEE AMENDMENT ~. to H.P. 1131, L.D. 1595 
Sec. H·8. 36 MRSA §1752, sub·§14·F is enacted to read: 
14-F. 
Snack food. 
"Snack food" 
means any item that is 
ordinarily sold for consumption without further preparation or 
that requires no preparation other than combining the item with a 
liquid; that may be stored unopened without refrigeration, except 
that ice cream, ice milk, frozen yogurt and sherbert are snack 
foods; and that is not generally considered a major component of 
a well-balanced meal. 
"Snack food" includes, but is not limited 
to, 
corn chips, 
potato chips, 
processed fruit snacks, 
fruit 
rolls, fruit bars, popped popcorn, pork rinds, pretzels. cheese 
sticks, cheese puffs, granola bars, breakfast bars. bread sticks. 
roasted nuts. 
doughnuts, 
cookies. 
crackers. pastries. 
toaster 
pastries, croissants, cakes. pigs, ice cream cones, marshmallows. 
marshmallow creme, soft drinks, ice cream sauces, ready-to-eat 
pUddings, beef jerky, meat bars and dips. 
Sec. H·9. 36 MRSA §1752, sub·§14·G is enacted to read: 
G. 
Soft 
drinks. 
"Soft 
drinks" 
means 
nonalcoholic 
beverages that contain natural or artificial sweeteners. 
"Soft 
drinks" does not include beverages that contain milk or milk 
products; soy. rice or similar milk substitutes; or more than 50% 
vegetable or fruit juice by volume. 
Sec. H·I0. 36 MRSA §1752, sub.§17.B, as enacted by PL 2003, c. 
673, 
Pt. 
V, 
§19 
and affected by 
§29, 
is repealed 
and 
the 
following enacted in its place: 
17-B. 
Taxable service. 
"Taxable service" means: 
A. 
Rental of living quarters in a hoteL rooming house or 
tourist or trailer camP; 
B. 
Transmission and distribution of electricity; 
C. 
Rental or lease of an automobile; 
D. 
Sale of prepaid calling service; 
E. 
Amusement and recreational services; 
F. 
Personal services; 
G. 
Personal property services; 
H. 
Real property services; 
I. 
Lawn and landscaping services, including tree trimming 
COMMITTEE AMENDMENT 
~~. 
~~ 
, . 
COMMITTEE AMENDMENT .. ff· to H.P. 1131, L.D. 1595 
and removal; 
J. 
Taxi and limousine services; and 
K. 
Safe deposit box rental. 
Sec. H-ll. 36 MRSA §1760, sub-§4, as amended by PL 1967, c. 
89, is repealed. 
Sec. H-12. 36 MRSA §1760, sub-§12-A, as amended by PL 1995, c. 
634, §l and affected by §2, is repealed. 
Sec. H-13. 36 MRSA §1760, sub-§20, as amended by PL 1991, c. 
546, §20, is further amended to read: 
20. 
Continuous 
residence; 
refunds 
and credits. 
Rental 
charged to any person who resides continuously for 68-4ays 100 
~ 
at anyone hotel, rooming house, tourist or trailer camp if: 
A. 
The person does not maintain a primary residence at some 
other location; or 
B. 
The person is residing away from that person' s primary 
residence in connection with employment or education. 
Tax paid by such person to the retailer under section 1812 during 
the 
initial 68-aay 
100-day period must 
be 
refunded 
by 
the 
retailer. Such tax reported and paid to the State by the retailer 
may be taken as a credit by the retailer on the report filed by 
the retailer covering the month in which refund was made to such 
tenant. 
~Ris-~~-~~~-Ee-~~~-~~~~-e{-~-~~~--Feeffiia~ 
ReHse-~-~~-~~~-£Fa4*eF-~~-~~-eeeapaaey-eR-~-~~~~-Ja±y 
IT-l~~l-~e~~4~e~~-~-~~~~~~~~-~~-&a&-Fea&al-is 
ffiaaeT 
Sec. H-14. 36 MRSA §1760, sub-§34, as amended by PL 2005, c. 
218, §23, is repealed. 
Sec. H-15. 36 MRSA §1760, sub-§52, as 
'l 
enacted by PL 1985, c. 
737, Pt. A, §96, is repealed. 
Sec. H-16. 36 MRSA §1812, sub-§l, 1[1[E and F are enacted to 
read: 
E. 
If the tax rate is 8%: 
Amount of Sale Price 
Amount Qf Tax 
Page ll-LR2080(2) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT Pt .. to H.P. 1131, L.D. 1595 
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F. 
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• 9Q tQ 
,22 • ins;;ll.!,sive 
~ 
• 27 tQ 
l,QQ • ins;;lusive 
.1..2t 
Sec. H-17. 36 MRSA §2015, sub-§2, 1[B, as enacted by PL 1993, 
c. 701, §8 and affected by §10, is amended to read: 
B. 
~RFee-~eR~R6 Two-tenths of the amount of tax paid to the 
State by the taxpayer resulting from the tax on the rental 
of automobiles for a period of less than one year during the 
most recently completed period from July 1st to June 30th. 
Sec. H-18. 36 MRSA §2551, sub-§2, as amended by PL 2005, c. 
12, Pt. TTT, §2 and affected by §4, is further amended to read: 
2. 
Cable 
and 
satellite television or 
radio 
services. 
"E*~e:eeee-ea&le ~ 
and satellite television Qr radio services" 
means all cable and satellite television or radiQ service ~Ha~-i6 
i:e-~~~~~~-~~-m4R4m~-~~~~~-ea:e-~-~~-~~-a 
ea&le-~~-~~1~~~~-~e~e¥~£~~£--6applieF, including the use of 
associated equipment for which a charge is made. It does not 
include installation of the associated equipment for which a 
separate charge is levied. 
COMMITTEE AMENDMENT 
~~. 
~.t) 
. 
COMMITTEE AMENDMENT /1" to H.P. 1131, L.D. 1595 
Sec. H·19. 36 MRSA §2551, sub·§20, as enacted by PL 2003, c. 
673, Pt. V, §25 and affected by §29, is amended to read: 
20. 
Telecommunications 
services. 
"Telecommunications 
services" means all telecommunications services as described in 
this subsection. 
A. "Telecommunications services" includes: 
(1) 
The provision of 2-way interactive communications 
through 
the 
use 
of 
telecommunications 
equipment, 
exclusive of mobile telecommunications services; aRa 
(2) 
Two-way 
interacti ve 
mobile 
telecommunications 
services provided by 
a 
home 
service provider to 
a 
customer whose place of primary use is within this 
State, to the extent those services are associated with 
transmissions that originate and ter.minate within this 
State or within any other state. 
For purposes of this 
paragraph, the term "state" includes the District of 
Columbia and any territory or possession of the United 
StatesT; and 
(3) 
Directory advertising services. 
B. 
"Telecommunications services" does not include: 
(1) 
Except as otherwise provided by this subsection, 
service originating or terminating outside this State 
and billed to a business customer; 
(2) 
Access services; 
(4) 
The sale of unbundled network elements for use in 
the provision of telecommunications services; 
(5) 
The lease of telecommunications equipment; 
(6) 
Prepaid calling service; or 
(7) 
Mobile telecommunications services provided by a 
home service provider to 
a 
customer whose place of 
primary use is not within this State. 
Sec. H·20. 36 MRSA §2552, sub·§ 1, .A, as amended by PL 2005, 
c. 12, Pt. TTT, §3 and affected by §4, is further amended to read: 
Page l3-LR2080(2) 
COMMITTEE AMENDMENT 
ilJfO· 
~ 
.. ~ 
COMMITTEE AMENDMENT .. H· to H.P. 1131, L.D. 1595 
A. 
EH1:.eBQe.G.-€asle Cable and satellite television or radio 
services; 
Sec. H-21. Application. 
That section of this Part that amends 
the Maine Revised Statutes, Title 36, section 1760, subsection 20 
applies to all rentals of any hotel, rooming house or tourist or 
trailer 
camp 
for 
occupancy 
on 
or 
after 
January 
1, 
2006, 
regardless of the date on which payment for the rental is made. 
Sec. H-22. Effective date. 
This Part takes effect January 1, 
2006. 
PART I 
Sec. 1-1. 5 MRSA §13090-K, sub-§2, as enacted by PL 2001, c. 
439, Pt. UUUU, §1, is amended to read: 
2. 
Source of fund. 
Beginning July 1, 2003 and every July 
1st thereafter, 
the 
State 
Controller 
shall transfer 
to 
the 
Tourism Marketing Promotion Fund an amount, as certified by the 
State Tax Assessor, that is equivalent to 5°-0 of the 1% 
Sil-o tax 
imposed 
on 
tangible 
personal 
property 
and 
taxable 
services 
pursuant to Title 36, section 1811, for the first 6 months of the 
prior fiscal year after the reduction for the transfer to the 
Local Government Fund as described by Title 30-A, section 5681, 
subsection 5. 
Beginning on October 1, 2003 and every October 1st 
thereafter, the State Controller shall transfer to the Tourism 
Marketing Promotion Fund an amount, as certified by the State Tax 
Assessor, that is equivalent to 5% of the 7% 8% tax imposed on 
tangible personal property and taxable services pursuant to Title 
36, section 1811, for the last 6 months of the prior fiscal year 
after the reduction for the transfer to the Local Government 
Fund. 
The tax amount must be based on actual sales for that 
fiscal 
year 
and may 
not 
consider 
any 
accruals that 
may 
be 
required by law. 
The amount transferred from General Fund sales 
and use tax revenues does not affect the calculation for the 
transfer to the Local Government Fund. 
Sec. 1-2. 36 MRSA §1811, first 11, as amended by PL 2001, c. 439, 
Pt. TTTT, §2 and affected by §3, is further amended to read: 
A tax is imposed on the value of all tangible personal 
property and taxable services sold at retail in this State. 
The 
rate of tax is 1% 
S% 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; 7% 8% on the value 
of rental of living quarters in any hotel, 
rooming house or 
tourist or trailer camp; lQ% 
15°-0 on the value of rental for a 
COMMITTEE AMENDMENT 
~C'6. 
~.~ 
COMMITTEE AMENDMENT .~. to H.P. 1131, L.D. 1595 
period of less than one year of an automobile; 7% 8% on the value 
of prepared food; 
and 
5% on the value of all other tangible 
personal property and taxable services. 
Value is measured by the 
sale price, except as otherwise provided. 
Sec. 1·3. Effective date. 
This Part takes effect October 1, 
2005. 
PARTJ 
Sec. J·l. 28·A MRSA §1652, sub.§I, as repealed and replaced by 
PL 1987, c. 342, §116, is amended to read: 
1. 
Excise tax on ma1t 1iquor. An excise tax is imposed on 
the privilege of manufacturing and selling malt liquor in the 
State. 
The Maine manufacturer or importing wholesale licensee 
shall pay an excise tax of 69¢ QQt per gallon on all malt liquor 
sold in the State. 
Sec. J-2. 28-A MRSA §1652, sub-§2, as amended by PL 1997, c. 
767, §4, is further amended to read: 
2. 
Excise tax on wine; hard cider. 
An 
excise tax 
~s 
imposed on the privilege of manufacturing and selling wine in the 
State. 
The Maine manufacturer or importing wholesale licensee 
shall pay an excise tax of 6Q¢ II per gallon on all wine et:heF 
t:haB 
smQ sparkling wine manufactured in or imported into the 
StateT-~--~eF-~l~~-eB-~~--s~aFkliB~-~~-ffiaBQ~aet:QFeQ-~~-9F 
iffi~9Et:eQ-~~~~~-St:at:e and 69¢ t2 per gallon on all hard cider 
manufactured in or imported into the State. 
Sec. J·3. Effective date. 
This Part takes effect January 1, 
2006. 
PARTK 
Sec. K·l. 36 MRSA c. 721 is enacted to read: 
CBAP"l.'ER 7 21 
soFT DRINK AND SYRUP TAX 
§4851. 
Definitions 
As 
used in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Bott1e. 
"Bottle" means 
any closed or sealed glass, 
metal, paper or plastic container or any other type of container 
regardless of the size or shape of the container. 
Page l5-LR2080(2) 
COMMITTEE AMENDMENT 
,% 
,,_. 
~\'"' 
~. 
COMMITTEE AMENDMENT "ri- to H.P. 1131, L.D. 1595 
2. 
Bottled soft drink. 
"Bottled soft drink" means 
any 
ready-to-consume, 
nonalcoholic 
drink, 
whether 
carbonated 
or 
noncarbonated, commonly referred to as a soft drink and contained 
in a bottle. 
3. 
Distributor. 
manufacturer 
or 
wholesale 
dealer. 
"Distributor, manufacturer or wholesale dealer" means any person 
who receives, stores, manufactures, bottles or sells bottled soft 
drinks, 
syrup, 
simple 
syrup or 
powder or base products for 
mixing, compounding or making soft drinks for sale to retailers, 
other manufacturers, wholesale dealers or distributors for resale 
purposes. 
4. 
Milk. 
"Milk" means natural liquid milk regardless of 
animal source or butterfat content; natural milk concentrate, 
whether or not reconstituted, 
regardless of animal source or 
butterfat content; or dehydrated natural milk, whether or not 
reconstituted. 
5. 
Batural fruit juice. 
"Natural fruit juice" means the 
original liquid resulting from the pressing of fruit, the liquid 
resulting from the reconstitution of fruit juice concentrate or 
the liquid resulting from the restoration of water to dehydrated 
fruit juice. 
6. 
Batural vegetable 
juice. 
"Natural vegetable 
juice" 
means 
the 
original 
liquid 
resulting 
from 
the 
pressing 
of 
vegetables, 
the 
liquid resulting 
from 
the 
reconstitution of 
vegetable juice concentrate or the liquid resulting from the 
restoration of water to dehydrated vegetable juice. 
7. 
Bonalcoholic beverage. 
"Nonalcoholic beverage" means 
any beverage not subject to tax under Title 28-A, Part 4. 
8. 
Place of business. 
"Place of business" means any place 
where 
soft drinks, 
syrups, 
simple 
syrups 
or 
powder 
or base 
products are manufactured or any place where bottled soft drinks, 
syrup, simple syrup, powder or base product or any other item 
taxed under this chapter is received. 
9. 
Powder or base product. 
"Powder or base product" means 
a solid mixture of basic ingredients used in making, mixing or 
compounding soft drinks by mixing the powder or other base with 
water, ice, syrup, simple syrup, fruits, vegetables, fruit juice, 
vegetable juice or any other product suitable to make a soft 
drink. 
10. 
Retailer. 
"Retailer" means any person, other than a 
manufacturer, distributor or wholesaler, 
who 
receives, 
stores, 
COMMITTEE AMENDMENT 
·th· 
"~ 
(". ~ 
",. 
COMMITTEE AMENDMENT 'A" to H.P. 1131, L.D. 1595 
mixes, 
compounds or manufactures any soft drink and sells or 
otherwise dispenses the soft drink to the ultimate consumer. 
11. 
Sale. 
"Sale" means the transfer of title or possession 
for 
a 
valuable 
consideration 
of 
tangible 
personal 
property 
regardless of the manner by which the transfer is accomplished. 
12. 
Simple syrup. 
"Simple syrup" means a mixture of sugar 
and water. 
13. 
Soft 
drink. 
"Soft 
drink" 
means 
any 
nonalcoholic 
beverage, 
whether naturally or artificially flavored, whether 
carbonated 
or 
noncarbonated, 
sold 
for 
human 
consumption, 
including, 
but 
not limited to, 
soda water, 
cola 
and 
other 
flavored drinks, any fruit or vegetable drink containing 10°-0 or 
less of natural fruit juice or natural vegetable juice and all 
other drinks and beverages commonly referred to as soft drinks, 
but not including coffee or tea unless the coffee or tea is 
bottled as a liquid for sale. 
14. 
Syrup. 
"Syrup" 
megn§ 
th~ liquig mixture of ba§ic 
ingr~gient§ ysed in mgking. 
m~x~ng Qr s;;ompoynding soft drinks by 
mixing 
th~ 
§yrl,1,p 
with 
wat~r • 
simpl~ 
§yrl,1,p. 
ic~. 
fruits, 
vegetgbles. 
frl,1,iJ;;, 
jl,1,is;;e. 
v~getat!l~ jl,1,ice Qr gny other product 
suitgl!l~ to make g sQft grink. 
§4852. 
Tax rate 
1. 
Tax 
imposed. 
There 
i§ 
impo§ed 
a 
tgX 
on 
every 
distril!utQr. manufgctl,1,rer or wholesale gealer tQ be calculated as 
follQws: 
A. 
Four dollars per gallon of syrup or simple syrup sQld or 
Qffered fQr §gle; 
B. 
FQrty-two cents per ggllon Qf botUeg sQft grinks sold 
or offered fQr §ale; gnd 
C. 
When g pgckgge or cQntainer of powder Qr l!ase product is 
sQlg Qr offered for sale in the Stgte. the tax on the sale 
Qf each pgs;;kgge Qr cQntginer i§ equgl to 42¢ for each gallon 
of soft drink that may be produced from each packgge or 
cQntginer 
l!y 
follQwing 
the 
manufacturer's 
instructions. 
This tax applies when the PQwder or l!a§e product is sold to 
g retailer fQr sale to the ultimate cons~er after the soft 
drink is prQduced by the retailer. 
2. 
Purchase 
from 
unlicensed 
seller. 
A 
retailer 
who 
purchgses bottled soft drinks. syrup, simple syrup or powder or 
ba§e product 
from 
an unlicen§ed distributor, 
manufacturer or 
COMMITTEE AMENDMENT 
... 
II, "(~. 
~ ~, 
'\. 
COMMITTEE AMENDMENT "A· to H.P. 1131, L.D. 1595 
wholesale dealer is liable for the tax imposed in subsection 1. 
§4853. 
Exemptions 
The following are exempt from the tax imposed by section 
4852: 
1. 
Sales to Federal Government. 
Syrups, 
simple syrups, 
powders or base products or soft drinks sold to the Federal 
Government; 
2. 
Products 
e~orted from State. 
Syrups, 
simple syrups, 
powders or base products or soft drinks exported from the State 
by a distributor, manufacturer or wholesale dealer; 
3. 
Coffee or tea base. 
Any powder or base product used in 
preparing coffee or tea; 
4. 
Juice 
or 
vggetable 
concentrate. 
Any 
frozen, 
freeze-dried or other concentrate to which only water is added to 
produce a soft drink containing more than 10% natural fruit juice 
or natural vegetable juice: 
5. 
Fruit or vggetab1e juice. 
Any soft drink containing 
more than 10% natural fruit juice or natural vegetable juice: 
6. 
Sales to another distributor« manufacturer or wholesale 
dealer. 
Syrups, simple syrups, powders or base products or soft 
drinks sold by a distributor, manufacturer or wholesale dealer to 
a 
distributor, 
manufacturer or wholesale dealer 
who 
holds 
a 
license 
under 
section 
4855 
if 
the 
license 
number 
of 
the 
distributor, manufacturer or wholesale dealer to whom the soft 
drink is sold is clearly shown on the invoice for the sale that 
is claimed to be exempt. 
This exemption does not apply to any 
sale to a retailer; 
7. 
Infant formula. 
Any product, whether sold in liquid or 
powder form, that is intended by its manufacturer for consumption 
by infants and that is commonly referred to as infant formula: 
8. 
Water. 
Water to which no flavoring, whether artificial 
or natural, has been added and which has not been artificially 
carbonated; 
9. 
Dietary aids. 
Any product. whether sold in liqUid or 
powder form that is intended by its manufacturer for use as a 
dietary supplement or for weight reduction; 
10. 
Consumer mix. 
Any powder or other base product that is 
intended by its manufacturer to be sold and used for the purpose 
COMMITTEE AMENDMENT 
c,. 
~<.J 
" 
~, 
-,~. 
COMMITTEE AMENDMENT ·R· to H.P. 1131, L.D. 1595 
of domestically mixing soft drinks by the ultim~te consumer; and 
11. 
Milk products. 
Any product containing milk or milk 
products. 
§4854. 
Reports 
A distributor. 
manufacturer or wholesale dealer and 
any 
retailer subject to the tax imposed by this chapter shall file a 
monthly return with the assessor and pay the tax on or before the 
15th day of the month following the month in which the sale or 
purchase was made. 
The returns must be made on forms prescribed 
by the assessor. 
The return must contain any information the 
assessor requires for the proper administration of this chapter. 
When 
a retailer is also acting as a distributor or wholesale 
dealer. 
the duty to report and pay the tax imposed by this 
chapter arises when the property is transferred to a retail store 
for sale to the ultimate consumer. as reflected by the records of 
the taxpayer. 
§4855. 
Licenses 
1. 
Distributor. 
manufacturer 
or wholesale dealer. 
Any 
distributor. manufacturer or wholesale dealer who sells or offers 
for sale syrups. simple syrups. powders or base products or soft 
drinks for sale to retailers within the State shall obtain from 
the 
bureau 
a 
license 
for 
the privilege of 
conducting 
such 
business within the State. 
2. 
Retailer. 
Any retailer who 
purchases syrups. 
simple 
syrups. 
powders 
or 
base 
products 
or 
soft 
drinks 
from 
an 
unlicensed distributor. manufacturer or wholesale dealer shall 
obtain a license from the bureau for the privilege of conducting 
such business. 
3. 
Location; display. 
Any person required to obtain a 
license under this chapter shall obtain a license for each place 
of business owned or operated by that person. 
The license must 
be conspicuOUSly displayed at the place of business for which it 
was issued. 
§4856. 
Penalties 
1. 
Failure to file. pay. 
A person required to file a 
return and pay tax under this chapter is subject to the same 
penalties as for failure to file and pay sales tax under Part 3. 
2. 
Failure to obtain license. 
A person required to obtain 
a license under section 4855 who fails to do so is subject to the 
Same penalties as for failure to register as a retailer under 
COMMITTEE AMENDMENT 
't~, 
~- ~, 
~'\. 
COMMITTEE AMENDMENT ,~" to H.P. 1131. L.D. 1595 
section 1754-B. 
§4857. 
Rules 
The assessor may adopt rules under the Maine Administrative 
Procedure Act to provide for the administration of this chapter. 
These rules may provide for a fee to cover the cost of issuing 
licenses reguired under section 4855. 
Rules adopted under this 
section are routine technical rules 
as defined in Title 5, 
chapter 375, subchapter 2-A. 
Sec. K-2. Effective date. 
This Part takes effect January 1, 
2006. 
PARTL 
Sec. L-I. 36 MRSA §4641-A, sub-§l, as enacted by PL 2001, c. 
559, Pt. I, §3 and affected by §15, is repealed. 
Sec. L-2. 36 MRSA §4641-A, sub-§l-A is enacted to read: 
I-A. 
Deeds. 
A tax is imposed on the grantor 
and the 
grantee with regard to each deed by which any real property in 
this State is transferred. 
The rate of tax that applies to each 
grantee and grantor of the real property is: 
A. 
For property valued at less than $100,000, the tax is $1 
for each $1,000 or fractional part of $1,000 of the value of 
the property transferred: 
B. 
For property valued at $100,000 or more but less than 
$200,000, the tax is $2 for each $1. 000 or fractional part 
of $1,000 of the value of the property transferred: 
C. 
For property valued at $200,000 or more but less than 
$300,000, the tax is $3 for each $1. 000 or fractional part 
of $1,000 of the value of the property transferred; 
D. 
For property valued at $300,000 or more but less than 
$500,000, the tax is $4 for each $1,000 or fractional part 
of $1,000 of the value of the property transferred: 
E. 
For property valued at $500,000 or more but less than 
$750,000, the tax is $5 for each $1. 000 or fractional part 
of $1,000 of the value of the property transferred; 
F. 
For property valued at $750,000 or more but less than 
$1,000,000, the tax is $6 for each $1,000 or fractional part 
of $1,000 of the value of the property transferred: and 
COMMITTEE AMENDMENT 
~ c:~. 
.. 
~:. 'v 
~\' 
COMMITTEE AMENDMENT ·A.. to H. P • 113 L 
L. D • 1595 
G. 
For property valued at $1,000~000 or more, the tax is $7 
for each $1,000 or fractional part of $1,000 of the value of 
the property transferred. 
Sec. L·3. 36 MRSA §4641·A, sub·§2, 1(A, as enacted by PL 2001, 
c. 
559, Pt. I, 
§3 and affected by §15, is repealed and the 
following enacted in its place: 
A. 
The rates of tax on a transferor and a transferee are 
the sarne as specified under subsection l-A for a grantor and 
a grantee, respectively. 
Sec. L·4. 36 MRS A §4641·A, sub·§2, 1(B, as enacted by PL 2001, 
c. 559, Pt. I, §3 and affected by §15, is amended to read: 
B. 
~Re-~aK-~~~~-~~~-ea-~Re-~~a~~~~~-~-1/~-&a-~Re 
~Faas~eFeeT--b-u-t--i-~-I;Re ~ 
transfer or acquisition is not 
reported to the register of deeds in the county or counties 
in which the property is located and the tax is not paid 
within 
days 
of 
the 
completion 
of 
the 
transfer 
or 
acquisition, the transferor and the transferee are jointly 
and severally liable for ~Re-~~~~-ame~a~ both payments. 
Sec. L·5. 36 MRSA §4641·B, sub·§4, as amended by PL 2005, c. 
12, Pt. H, §1, is further amended to read: 
4. 
Distribution of State's share of proceeds. 
The State 
Tax Assessor shall pay all net receipts received pursuant to this 
section to the Treasurer of State, and shall at the same time 
provide the Treasurer of State with documentation showing the 
amount 
of 
revenues derived 
from 
the tax 
imposed by section 
4641-A, subsection ~ I-A and the amount of revenues derived from 
the tax imposed by section 464l-A, subsection 2. 
The Treasurer 
of State shall credit V·6--e~ 65% the revenues derived from the 
tax imposed by section 4q4l-A, subsection 
~ l-A to the General 
Fund and shall monthly pay the remaining ~~6 ~ 
of such revenues 
to the Maine State Housing Authority, which shall deposit the 
funds in the Housing Opportunities for Maine Fund created in 
Title 30-A, section 4853, except that in fiscal year 2003-04, 
fiscal year 2004-05, fiscal year 2005-06 and fiscal year 2006-07, 
$7,500,000 of the remaining ~~6 portion of those revenues must be 
transferred to the General Fund before any payments are made to 
the Maine State Housing Authority. 
The Treasurer of State shall 
credit to the General Fund all of the revenues derived from the 
tax imposed by section 464l-A, subsection 2. 
PARTM 
Sec. M·l. 20·A MRSA §15671, sub·§l, 1[B, as amended by PL 2005, 
c. 
2, Pt. D, 
§32 and affected by §§72 and 74 and c. 12, Pt. 
COMMITTEE AMENDMENT 
~~' 
~,'5 
COMMITTEE AMENDMENT 'R" to H,P, 1131, L.n. 1595 
ww, §18, is further amended to read: 
B. 
By fiscal year 6GG8-G9 2006-07 the state share of the 
total cost of funding public education from kindergarten to 
grade 12, as described by essential programs and services, 
must be 55%. 
Beginning in fiscal year 2005-06 and in each 
fiscal year until fiscal year 6GQ8-Q9 
2006-07, 
the state 
share of essential programs and services described costs 
must increase toward the 55% level required in fiscal year 
~QQ8-Q9 2006-07. 
Sec. M-2. 20-A MRSA §15671, sub-§7, as amended by PL 2005, c. 
2, Pt. D, §34 and affected by §§72 and 74 and c. 12, Pt. WW, §18, 
/ 
is further amended to read: 
7. 
Transition; annual targets. 
To achieve the system of 
school funding based on essential programs and services required 
by this section, the following annual targets are established. 
A. 
The base total calculated pursuant to section 
15683, 
subsection 2 is subject to the following annual targets. 
(1) 
For fiscal year 2005-06, the target is 84%. 
(2) 
For fiscal year 2006-07, the target is 9G% 100%. 
f4}--¥~-~~~-y&&~-6GGg-G9-a~4-~~-yea~&r-~Re 
t:a!=§et:-is-1QG%T 
B. 
The annual targets for the state share percentage of the 
statewide adjusted total cost of the components of essential 
programs and services are as follows. 
(1) 
For fiscal year 2005-06, the target is 52.6%. 
(2) 
For fiscal year 2006-07, the target is a~T8e% 55%. 
f4}--¥~-~~~-y&&~-6GG8-G9-a~-~~-yea~&r-~Re 
t:a!=§et:-is-aa%T 
Sec. M-3. 20-A MRSA §15671-A, sub-§2, ~B, as amended by PL 
2005, c. 2, Pt. D, §35 and affected by §§72 and 74 and c. 12, Pt. 
WW, §18, is further amended to read: 
B. 
For property tax years beginning on or after April 1, 
2005, 
the 
commissioner 
shall 
calculate 
the 
full-value 
COMMITTEE AMENDMENT 
~€.~. 
(;" 
\., 
COMMITTEE AMENDMENT .. A 
.. to H.P. 1131, L.D. 1595 
education mill rate that is required to raise the statewide 
total local share. 
The full-value education mill rate is 
calculated for each fiscal year by dividing the applicable 
statewide total local share by the applicable statewide 
valuation. 
The full-value education mill rate must decline 
over the period from fiscal year 2005-06 to fiscal year 
6008-09 2006-07 and may not exceed 9.0 mills in fiscal year 
2005-06 and may not exceed 8.0 mills in fiscal year 6008-09 
2006-07. 
The full-value education mill rate must be applied 
according to section 15688, subsection 3-A, paragraph A to 
determine 
a 
municipality's local cost share expectation. 
Full-value education mill rates must be derived according to 
the following schedule. 
(1) 
For the 2005 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 47.4% statewide total local share in fiscal year 
2005-06. 
(2) 
For the 2006 property tax year, the full-value 
education mill rate is the amount necessary to result 
in a 49 ... ;1.4% 45% statewide total local share in fiscal 
year 2006-07. 
+~+--~-~~-6QQ~-~~~~-~a*--~~r-~~-E~~~-va~~e 
eQ~ea~ieR-~~~--~~-46-~~-ame~R~-~~es~a~y-~~-~es~±~ 
iR-a-~-~~~~~-~e~al-le€al-~~-~-~~&Ga~-yea~ 
6001-08 ... 
+4+--~-~~-6QQS-~~~~-~a*--~~r-~~-E~~~-va~~e 
eQ~ea~ieR-~~~--~~-46-~~-ame~R~-~~es~a~y-~~-~es~~~ 
iR-~~~~~-s~a~ewiQe-~~~--~~-saa~e-~~-~~~-yea~ 
6008-09 ... 
Sec. M-4. 20-A MRSA §15689, sub-§l, 1[B, 
as 
repealed 
and 
replaced by PL 2005, c. 2, Pt. D, §58 and affected by §§72 and 74 
and c. 12, Pt. WW, §18, is' amended to read: 
B. 
The school administrative unit's special education costs 
as calculated pursuant to section 15681-A, 
subsection 2 
multiplied by the following transition percentages: 
(1) 
In fiscal year 2005-06, 84%; and 
(2) 
In fiscal year 2006-07, 90%t 100%. 
COMMITTEE AMENDMENT 
~~. 
~~\ 
'\. 
COMMITTEE AMENDMENT .. ~ 
.. to H.P. 1131, L.D. 1595 
Sec. M-S. 20-A MRSA §IS7S2, first 1J, as enacted by PL 2005, c. 
2, Pt. D, §63 and affected by §§72 and 74 and c. 12, Pt. WW, §18, 
is amended to read: 
In accordance with the phase-in schedule provided in chapter 
606-B, beginning in fiscal year 6998-99 2006-07, the Legislature 
each year shall provide at least 55°" of the cost of the total 
allocation for kindergarten to grade 12 education from General 
Fund revenue sources. 
PARTN 
Sec. 
N-l. 
Transfer 
to 
Maine 
Budget 
Stabilization 
Fund. 
Notwithstanding the Maine Revised Statutes, Title 5, 
sections 
1535 and 1536, the State Controller shall no later than June 30, 
2006, 
transfer 
from 
the 
General 
Fund 
to 
the 
Maine 
Budget 
Stabilization Fund, 
established under Title 
5, 
section 1532, 
$52,859,718 prior to any other transfers required by law. 
Sec. N-2. Transfer to General Fund. 
Notwithstanding any other 
provision of law, the State Controller shall transfer from the 
Maine 
Budget Stabilization Fund, 
established under 
the 
Maine 
Revised Statutes, Title 5, section 1532, to the General Fund, 
$45,077,868 no later than June 30, 2007 and $4,497,986 no later 
than June 30, 2008. 
PART 0 
Sec. 
0-1. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Homestead Property Tax Reimbursement 
0886 
following 
Initiative: 
Provides funds to reimburse municipalities for 100'l-o 
of the revenue loss associated with the homestead property tax 
exemption. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Maine Revenue Services 
0002 
2005-06 
$0 
$0 
2006-07 
$36,267,826 
$36,267,826 
Initiative: 
Provides 
funds 
to 
provide 
training, 
media 
advertising, 
educational programs 
and materials and technical 
assistance to assist businesses in implementing the changes to 
COMMITTEE AMENDMENT 
~~. 
~~' 
. . 
COMMITTEE AMENDMENT ·A .. to H.P. 1131, L.D. 1595 
the sales and service provider tax. 
The bureau shall, to the 
extent 
feasible, 
assist 
businesses 
in 
acquiring 
software 
necessary 
to 
meet 
the 
new 
tax 
collection 
and 
reporting 
obligations. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Maine Revenue Services 
0002 
2005-06 
$400,000 
$400,000 
2006-07 
$0 
$0 
Initiative: 
Provides 
funds 
for 
the 
administrative 
costs 
associated with the taxation changes, including funds for 3 Tax 
Examiner positions, 
computer programming and costs related to 
taxpayer notification. 
GENERAL FUND 
POSITIONS -
LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
AD~NISTRATIVE AND FINANCIAL SERVICES, 
DEPARTMENT OF 
DEPARnmNT 'l'OTALS 
GENERAL FUND 
DEPARnmNT'l'OTAL -
ALL FUNDS 
2005-06 
3.000 
$144,455 
$244,466 
$388,921 
2005-06 
$188,921 
$188,921 
ECONOMIC AND COMMDlfITY DEVELOPMENT, DEPARTMENT OF 
Tourism Marketing Promotion Fund 
0748 
2006-07 
3.000 
$169,539 
$29,866 
$199,405 
2006-07 
$36,461,231 
$36,467,231 
Initiative: 
Allocates 
additional 
revenue 
generated 
by 
the 
increase in the meals and lodging tax. 
orDER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
ECONOMIC AND COMMDlfITY DEVELOPMENT, 
DEPARTMENT OF 
DEPARTMENT 'l'OTALS 
OTHER SPECIAL REVENUE FUNDS 
2005-06 
$0 
$0 
2005-06 
$0 
2006-07 
$693,112 
$693,112 
2006-07 
$693,112 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT Iff].. to H.P. 1131, L.D. 1595 
DEPARTMENT TOTAL -
ALL FUNDS 
$0 
$693,112 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 
0308 
Initiative: 
Provides additional funds for the State's share of 
contributing 
55% of the total cost of essential programs and 
services beginning in fiscal year 2006-07. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
EDUCATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL -
ALL FUNDS 
MAINE STATE HOUSING AUTHORITY 
Housing for Opportunities Fund 
0442 
2005-06 
2006-07 
$0 
$89,953,276 
$0 
$89,953,276 
2005-06 
2006-07 
$0 
$89,953,276 
$0 
$89,953,276 
Initiative: 
Adjusts allocations for the Housing Opportunities 
for Maine Fund as a result of the changes to the real estate 
transfer tax. 
O'IBER SPECIAL REVENUE FUNDS 
2005-06 
2006-07 
All Other 
($708,506) 
$690,387 
OTHER SPECIAL REVENUE FUNDS TOTAL 
($708,506) 
$690,387 
MAINE STATE HOUSING AUTHORITY 
DEPAR"lMERT mTALS 
2005-06 
2006-07 
O'l"BER SPECIAL REVENUE FUNDS 
($708,506) 
$690,387 
DEPAR'l'MENT TOTAL -
ALL FUNDS 
($708,506) 
$690,387 
SECTION TOTALS 
2005-06 
2006-07 
GENERAL FUND 
$788,921 
$126,420,507 
O'l"BER SPECIAL REVENUE FUNDS 
($708,506) 
$1,383,499 
SECTION TOrAL -
ALL FUNDS 
$80,415 
$127,804,006' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A· to H.P. 1131, L.D. 1595 
SUMMARY 
Part A increases the low-income tax credit under the income 
tax by increasing the threshold of taxable income below which no 
taxes are due from $2,000 to $4,000 for single individuals and 
married persons filing separately, $6,000 for persons filing as 
heads of households and $8,000 for persons filing married joint 
returns. 
Part B conforms the standard deduction under the income tax 
to the federal standard deduction beginning with the 2006 tax 
year, thereby eliminating the marriage penalty. 
Part C conforms the personal exemption under the income tax 
to the same amount as the federal personal exemption. 
Part D lowers the top income tax rate from 
8.5~ to 8.25~ for 
the 2006 tax year. 
Part E conforms the income tax treatment of health savings 
accounts with the federal income tax exclusion and deduction. 
Part 
F 
increases state 
reimbursement 
for 
the 
homestead 
exemption to 100~ of municipal property taxes lost as a result of 
the exemption beginning in 2006. 
Part 
G 
increases 
the 
maximum 
benefit 
under 
the 
Maine 
Residents 
Property 
Tax 
program 
from 
$2,000 
to 
$3,000 
and 
increases to $5,000 the maximum amount of property tax that may 
be used to calculate benefits. 
Part H expands the tax base under the sales tax by repealing 
sales tax exemptions 
for packaging materials, 
ships' 
stores, 
railroad track materials and certain short-term rentals and by 
extending 
the 
sales 
tax 
to 
amusements, 
personal 
services, 
personal property services, 
home care services, 
real property 
services, lawn and landscaping services, taxi, limousine and same 
day courier services, telephone directory advertising and safe 
deposit box rental. 
This Part also reinstitutes the sales tax on 
snack foods and extends the service provider tax to basic cable 
and satellite television 
and 
radio service 
and 
to 
consumer 
interstate telephone calls. 
Part I increases the sales tax 
serviced at licensed establishments 
8% 
and 
increases 
the 
sales 
tax 
automobiles from 10~ to 15%. 
on meals and lodging, liquor 
and prepared food from 
7~ to 
on 
short-term 
rentals 
of 
Part J increases the excise tax on malt liquor from 25¢ per 
COMMITTEE AMENDMENT 
;s~. 
~\. 
COMMITTEE AMENDMENT ,jCf, to H.P. 1131, L.D. 1595 
gallon to 60¢ per gallon, on wine from 30¢ per gallon to $1 per 
gallon and on hard cider from 25¢ per gallon to $1 per gallon. 
Part K establishes a tax on the distribution, manufacture 
and wholesale of soft drinks and soft drink products. 
Part L changes 
the 
rate structure for 
the real estate 
transfer tax to provide that a transferor of the property must 
pay a transfer tax starting at $1 per $1,000 of value of the 
property for property valued at less than $100,000, increasing to 
$7 per $1,000 of value for real estate with a value exceeding 
$1,000,000. 
The revenue from the portion of the tax received to 
the State and attributable to transfers by deed tax is credited 
65% to the General Fund and 35% to the Housing Opportunities for 
Maine Fund. 
Part 
essential 
beginning 
M requires the State to 
programs and services under 
in fiscal year 2006-07. 
pay 
55% 
of the costs of 
the education finance laws 
Part 
N 
Stabilization 
amendment that 
this amendment 
requires 
the 
transfer 
to 
the 
Maine 
Budget 
Fund 
of 
General 
Fund 
revenue 
raised 
by 
this 
is estimated to exceed expenditures authorized by 
to be available to fund the State's commitment to 
education funding in future years. 
Part 0 adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
LD 1595 
LR2080(02) 
An Act To Rebalance Maine's Tax Code 
Fiscal Note for Bill as Amended by Committee Amendment ,.jf, 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2005-06 
2006-07 
2007-08 
Net Cost (Savings) 
General Fund 
$0 
$0 
$0 
Appropriations/Allocations 
General Fund 
$788,921 
$126,420,507 
$82,275,617 
Other Special Revenue Funds 
($708,506) 
$1,383,499 
$1,859,902 
Revenue 
General Fund 
$53,648,639 
$81,342,639 
$78,472,536 
Other Special Revenue Funds 
$141,126 
$2,480,182 
$2,663,861 
Transfers 
General Fund 
($52,859,718) 
$45,077,868 
$3,803,081 
Other Special Revenue Funds 
$0 
$0 
$694,905 
Fiscal Detail and Notes 
Projections 
General Fund Summary of Cost (Savings) 
2005-06 
2006-07 
2007-08 
Income tax changes 
$26,889,480 
$69,269,635 
$74,093,563 
Health Savings Accounts 
$579,852 
$500,327 
$560,051 
Homestead Property Tax Reimbursement 
$0 
$36,267,826 
$36,435,172 
Circuit breaker maximum benefit to $3,000 
$0 
$14,416,779 
$16,322,243 
Expand sales/service provider tax base 
($43,279,151) 
($104,593,637) 
($107,703,870) 
Meals and lodging to 8%, auto rentals to 15% 
($15,450,859) 
($25,200,353) 
($25,700,948) 
Beer and wine tax increase 
($8,200,000) 
($12,400,000) 
($12,400,000) 
Soft drink tax 
($5,299,542) 
($12,012,294) 
($12,252,540) 
Real estate transfer tax 
($8,888,419) 
($11,323,096) 
($11,391,035) 
Maine Budget Stabilization Fund transfer 
$52,859,718 
($45,077 ,868) 
($4,497,986) 
General Purpose Aid for Local Schools 
$0 
$89,953,276 
$45,632,067 
Fund for Efficient Delivery of Educ. Services 
$0 
$0 
$694,905 
Administrative costs 
$788,921 
$199,405 
$208,378 
$0 
$0 
$0 
LR2080(2) - Fiscal Note - Page 1 of 1 
Projections 
2008-09 
($39,694,830) 
$36,820,273 
$1,911,663 
$76,515,103 
$2,532,585 
$0 
$0 
Projections 
2008-09 
$79,336,009 
$608,756 
$36,602,518 
$17,739,825 
($111,141,827) 
($26,700,894) 
($12,400,000) 
($12,497,591) 
($11,459,381) 
$0 
$0 
$0 
$217,755 
($39,694,830)