An Act To Eliminate Estate Taxes on Family-owned Businesses
Maine Legislature, Session 122, LD 0436
Committee Amendment CA_A_H589 (House)
Amends: 36 MRSA §4062, 36 MRSA §4064

COMMITTEE AMENDMENT "A .. to H.P. 321, L.D. 436, Bill, 
Act To Eliminate Estate Taxes on Family-owned Businesses" 
"An 
Amend 
the bill by striking out all of 
section 
and 
inserting in its place the following: 
'Sec. 1. 36 MRSA §4062, sub-§l-A, ,A, as repealed and replaced 
by PL 2005, c. 12, Pte N, §1 and affected by §4, is amended to 
read: 
A. 
For the estates of decedents dying after December 31, 
2002, "federal credit" means the maximum credit for state 
death taxes determined under the Code, Section 2011 as of 
December 31, 2002 exclusive of the reduction of the maximum 
credit contained in the Code, Section 2011(b)(2); the period 
of limitations under the Code, 
Section 2011(c); 
and the 
termination 
provision 
contained 
in 
the 
Code, 
Section 
2011(f). 
The federal taxable estate is to be determined 
using the applicable Code as of the date of the decedent's 
death, except that: 
(1) 
The state death tax deduction contained in the 
Code, Section 2058 is to be disregarded; 
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COMMITTEE AMENDMENT 
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;,. . 
COMMITTEE AMENDMENT ,/t, to H.P. 321, L.D. 436 
(3) For the estates of decedents dying after December 
31, 2004:, the federal taxable estate must be decreased 
by an amount equal to the value of Maine qualified 
terminable interest property in the estate of 
the 
decedent; and 
(4) For the estates of decedents dying after December 
31, 2004, the federal taxable estate must be increased 
by an amount equal to the value of Maine elective 
property in respect of the decedent; and' 
Further amend the bill by striking out all of section 4 and 
inserting in its place the following: 
'Sec. 4. 36 MRSA §4064, first" as amended by PL 2005, c. 218, 
§42, is further amended to read: 
A tax is imposed upon the transfer of real property and 
tangible personal property situated in this State and held by an 
individual who dies prior to January 1, 2002 or after December 
31, 2002 and who at the time of death was not a resident of this 
State. 
When 
real 
or 
tangible 
personal 
property 
has 
been 
transferred into a trust or a limited liability company or other 
pass-through entity, the tax imposed by this section applies as 
if the trust or limited liability company or other pass-through 
entity did not exist and the property was personally owned by the 
decedent. 
Maine property is subject to the tax imposed by this 
section to the extent that such property is included in the 
decedent's federal gross estate. 
The amount of this tax is a sum 
equal to that proportion of the federal credit that the value of 
the decedent's Maine real and tangible personal property in this 
State bears to the value of the decedent's federal gross estate. 
All property values under this section are as finally determined 
for federal estate tax purposes, 
except that for estates of 
decedents dying after December 31, 
2002 and before January 1. 
~ 
that do not incur a federal estate tax, all property values 
are as finally determined by the assessor in accordance with the 
Code as if the estate had incurred a federal estate tax. 
The 
share of the federal credit used to determine the amount of a 
nonresident 
individual's 
computed without regard to 
personal property located 
property. 
estate 
tax 
under 
this 
section 
is 
whether the specific real or tangible 
in the State is marital deduction 
Sec. 5. Application. 
Maine Revised Statutes, 
paragraph A applies to 
January 1, 2005.' 
That section of this Act that amends the 
Ti tIe 36, section 4062, subsection I-A, 
estates of decedents dying on or after 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~, to H.P. 321, L.D. 436 
SUMMARY 
This amendment makes 
changes to reflect changes made in 
Public Law 2005, chapters 12 and 218. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
lvenue 
General Fund 
Fiscal Detail and Notes 
Approved: 05127/05 ;:I;!?ac:.. 
LD436 
LR0391(02) 
An Act To Eliminate Estate Taxes on Family-owned Businesses 
Fiscal Note for Bill as Amended by Committee Amendment ,~, 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2005-06 
2006-07 
2007-08 
Projections 
2008-09 
$9,492,017 
$12,690,438 
$13,851,959 
$14,954,940 
($9,492,017) 
($12,690,438) 
($13,851,959) 
($14,954,940) 
This bill is expected to reduce General Fund revenue by $9,492,017 in fscal year 2005-06 and $12,690,438 in fiscal 
year 2006-07. 
LR0391(2) - Fiscal Note - Pa~e 1 of 1