An Act To Make Minor Substantive Changes to the Tax Laws
Maine Legislature, Session 122, LD 1711
Committee Amendment CA_A_H974 (House)
Amends: 36 MRSA §653, 36 MRSA §1760, 36 MRSA §2557, 36 MRSA §4062, 36 MRSA §4063, 36 MRSA §4071, 36 MRSA §4075-A, 36 MRSA §6664, 36 MRSA §6754

COMMITTEE AMENDMENT "A" to H.P. 1218, L.D. 1711, Bill, 
Act To Make Minor Substantive Changes to the Tax Laws" 
"An 
Amend 
the bill 
by 
striking out all 
of 
section 
and 
inserting in its place the following: 
. Sec. 4. 36 MRSA §653, sub-§l. ~D-l, as amended by PL 2003, c. 
702, §2, is further amended to read: 
D-l. 
The estates up to the just value of $4+T9GG $50,000, 
having 
a 
taxable situs 
in the 
place 
of 
residence, 
for 
specially adapted housing units, of veterans who served in 
the Armed Forces of the United States during any federally 
recognized war period, including the Korean Campaign, 
the 
Vietnam War and the Persian Gulf War, and who are paraplegic 
veterans within 
the 
meaning 
of 
United 
States 
Code, 
Chapter 21, Section 2101, and who received a grant from the 
United States Government for any such housing, or of the 
unremarried widows or widowers of such veterans. 
A veteran 
of the Vietnam War must have served on active duty for a 
period of more than 180 days, 
any part of which occurred 
after February 27, 1961 and before May 8, 1975 in the case 
of a veteran who served in the Republic of Vietnam during 
that period and after August 4, 1964 and before May 7, 1975 
in all other cases, unless the veteran died in service or 
was discharged for a service-connected disability after that 
date. 
"Vietnam War" means the period between August 5, 1964 
and May 7, 
1975 and the period beginning on February 28, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 4 .. to H.P. 1218, L.D. 1711 
1961 and ending on May 7, 1978 in the case of a veteran who 
served 
in 
the 
Republic 
of 
Vietnam 
during 
that period. 
"Persian Gulf War" means service on active duty on or after 
August 7, 1990 and before or on the date that the United 
States Government recognizes as the end of that war period. 
The 
exemption provided in this paragraph applies to the 
property of the veteran including property held in joint 
tenancy with a spouse or held in a revocable living trust 
for the benefit of that veteran.' 
Further amend the bill by striking out all of section 6 and 
inserting in its place the following: 
'Sec. 6. 36 MRSA §1760, sub-§16, as amended by 
689, Pt. B, §6 and c. 705, §4 and affected by §14, 
and the following enacted in its place: 
PL 2003, c. 
is repealed 
16. 
Hospitals. 
research centers. 
churches 
and 
schools. 
Sales to: 
A. 
Incorporated hospitals; 
B. 
Incorporated nonprofit nursing homes licensed by the 
Department of Health and Human Services; 
C. 
Incorporated 
nonprofit 
residential 
care 
facilities 
licensed by the Department of Health and Human Services; 
D. 
Incorporated nonprofit assisted housing programs for the 
elderly licensed 
by the 
Department of Health 
and 
Human 
Services; 
E. 
Incorporated nonprofit home health agencies certified 
under the United States Social Security Act of 1965, Title 
XVIII, as amended; 
F. 
Incorporated nonprofit rural community health centers; 
G. 
Incorporated nonprofit dental health centers; 
H. 
Incorporated nonprofit organizations organized for the 
sole purpose of conducting medical research; 
I. 
Incorporated nonprofit organizations organized for the 
purpose of establishing and maintaining laboratories for 
scientific study and investigation in the field of biology 
or ecology; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT A .. to H.P. 1218, L.D. 1711 
J. 
Institutions incorporated as nonprofit corporations for 
the purpose of operating educational television or radio 
stations: 
K. 
Schools: 
L. 
Incorporated nonprofit organizations or their affiliates 
whose purpose is to provide literacy assistance or 
free 
clinical assistance to children with dyslexia: and 
M. 
Regularly organized 
churches 
or houses 
of religious 
worship. ' 
Further amend the bill by striking out all of section 10 and 
inserting in its place the following: 
'Sec. 10. 36 MRSA §2557, sub-§3, 
673, 
Pt. 
V, 
§25 
and affected by 
following enacted in its place: 
as enacted by PL 
§29, 
is 
repealed 
2003, 
c. 
and 
the 
3. 
Hospitals. 
research 
centers. 
churches 
and 
schools. 
Sales to: 
A. 
Incorporated hospitals; 
B. 
Incorporated nonprofit nursing homes licensed by the 
Department of Health and Human Services; 
C. 
Incorporated 
nonprofit 
residential 
care 
facilities 
licensed by the Department of Health and Human Services; 
D. 
Incorporated nonprofit assisted housing programs for the 
elderly licensed by the 
Department 
of Health and 
Human 
Services: 
E. 
Incorporated nonprofit home health agencies certified 
under the United States Social Security Act of 1965, Title 
XVIII, as amended; 
F. 
Incorporated nonprofit rural community health centers; 
G. 
Incorporated nonprofit dental health centers; 
H. 
Incorporated nonprofit organizations organized for the 
sole purpose of conducting medical research; 
I. 
Incorporated nonprofit organizations organized for the 
purpose of establishing and maintaining laboratories 
for 
scientific study and investigation in the field of biology 
or ecology; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "/f,, to H.P. 1218, L.D. 1711 
J. 
Institutions incorporated as nonprofit corporations for 
the purpose of operating educational television or radio 
stations: 
K. 
Schools: 
L. 
Incorporated nonprofit organizations or their affiliates 
whose 
purpose is to provide literacy assistance or free 
clinical assistance to children with dyslexia; and 
M. 
Regularly organized churches 
or houses 
of 
religious 
worship. ' 
Further amend the bill by striking out all of sections 17 
and 18 and inserting in their place the fOllowing: 
'Sec. 17. 36 MRSA §4062, sub-§8 is enacted to read: 
8. 
Value. 
When 
Qetermining value for 
;Qur;Qoses 
of this 
cha12ter, "value" means, with respect to an estg,te or to ;Qroperty 
included 
in 
an estate, 
including 
Maine 
gualified 
terminable 
inter!i1st ;Qro;Qerty: 
A. 
For !i1states of decedents that incur a 
federal estate 
tax, the value as finally determined for federal estate tax 
;Qur;Q0s!i1s 
unless 
the State Tax 
Assessor has determined 
a 
different value in accordance with the Code; or 
B. 
For estates of decedents that do not incur a federal 
estate 
tax, 
the 
value 
as 
determined 
by 
the 
State 
Tax 
Assessor in accordance with the Code as if the estate had 
incurred a federal estate tax. 
Sec. 18. 36 MRSA §4063, as amended by PL 2003, c. 673, Pt. D, 
§3, is repealed and the following enacted in its place: 
§4063. 
Tax on estate of resident 
A tax is im;Qosed u;Qon the transfer of the estate of every 
person who dies on or after January I, 2002 and who, at the time 
of death, was a resident of this State. 
The amount of this tax 
is egual to the federal credit mul ti;Qlied by a fraction, the 
numerator of which is that ;Qortion of the decedent's federal 
gross estate that consists of real and tangible ;Qersonal ;Qroperty 
located in the State ;Qlus all intangible ;Qersonal pro;Qerty and 
the denominator of which is the decedent's federal gross estate. 
For ;Qur;Qoses of this section, "federal gross estate" means the 
decedent's federal gross estate as modified by Maine gualified 
terminable interest prO;Qerty and Maine elective property.' 
COMMITTEE AMENDMENT 
COMM:ITTEE AMENDMENT ,f}, to H.P. 1218, L.D. 1711 
Further amend the bill by striking out all of sections 23 
and 24 and inserting in their place the following: 
'Sec. 23. 36 MRSA §4071, sub-§3, as enac ted by PL 198 L 
c. 
451, §7, is amended to read: 
3. 
Items entering computation of tax. If there has been a 
final federal determination with respect to a decedent's federal 
estate tax, 
any item, 
but not its value, 
entering into the 
computation of the tax shall--se is deemed to have been the 
subject of 
the 
final 
federal 
determination, 
whether 
or 
not 
specifically adjusted thereby. 
Sec. 24. 36 MRSA §4075-A, sub-§l, as enacted by PL 1995, c. 
281, §23, is amended to read: 
1. 
Refund. 
IB-~£€-~-&~-aBy-~~paYffi€£~-~--~~-±mFese8 
sy--~ai&-~~-r-~~-S~a~e--~aH Assess~~-~~--~~~£~~~~€--~he 
~Feas~FeF-~-~~~-~e-~~~~~-eyeFFaymeB~-~~-aFF±±eas±e 
ia~eFe&~-~~-~he A personal representative or 
~he responsible 
party otherwise liable for the tax imposed by this chapter may 
request a refund of any tax imposed by this chapter within 3 
years from the time the return was filed or 2 years from the time 
the tax was paid, whichever period expires later. 
Every claim 
for refund must be submitted to the State Tax Assessor in writing 
and state the specific grounds upon which it is founded. 
The 
claimant may in writing request an informal conference regarding 
the claim for refund pursuant to the provisions of section 151.' 
Further amend the bill by striking out all of sections 31 
and 32 and inserting in their place the following: 
'Sec.31. 36 MRSA §6664, sub-§2, as enacted by PL 2005, c. 12, 
Pt. BBB, §5, is amended to read: 
2. 
Cooperation. 
±he Claimants for reimbursement under this 
chapter, the Department of Economic and Community Development and 
municipalities shall provide any information requested by the 
State Tax Assessor for the completion of the report required by 
this section. 
Sec. 32. 36 MRSA §6754, sub-§2, lIC, as enacted by PL 1995, c. 
669, §5, is amended to read: 
C. 
A business electing to take the jobs and investment tax 
credit under section 5215 may not claim reimbursement under 
this chapter until the full amount of allowable jobs and 
investment 
tax credit benefits have 
been claimed. 
This 
limitation does not apply to claims for reimbursement of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. /f .. to H.P. 1218, L.D. 1711 
withholding 
for 
qualified 
Pine 
Tree 
Development 
Zone 
employees 
as 
defined 
in 
Title 
30-A, 
section 
5250-I, 
subsection 18, if those employees and any investment in the 
related Pine 
Tree 
Development 
Zone 
are not 
included in 
calculating the jobs and investment tax credit under section 
~ 
Sec. 33. Application. 
That section of this Act that enacts 
the Maine Revised Statutes, Title 36, section 4062, subsection 8 
applies to the estate of any decedent dying on or after January 
1, 2006. 
Those sections of this Act that amend Title 36, section 
4071, subsections 1 
and 3 apply to the estate of any decedent 
dying on or after January 1, 2006. 
Those sections of this Act 
that enact Title 36, section 5122, subsection 2, paragraphs V, W 
and X apply to tax years beginning on or after January 1, 2005. 
That section of this Act that amends Title 36, 
section 6754, 
subsection 2, paragraph C applies to tax years beginning on or 
after January 1, 2006.' 
Further amend the bill by relettering or renumbering any 
nonconsecutive 
Part 
letter 
or 
section 
number 
to 
read 
consecutively. 
SUMMARY 
This amendment reorganizes parallel exemption provisions 1n 
the sales and use tax and the service provider tax for greater 
clarity, strikes a section relating to casual sales and a section 
relating to estate tax liens, 
makes 
changes relating to 
the 
estate tax to provide greater clarity and to reflect recent 
enactments, adds a provision updating the property tax exemption 
for 
paraplegic 
veterans 
and 
amends 
application 
dates. 
The 
amendment 
also 
allows 
a 
taxpayer 
to 
qualify 
for 
the 
80~ 
employment tax increment financing benefit for employment inside 
a Pine Tree Development Zone even if it also claims a jobs and 
investment tax credit for qualified investment outside a 
Pine 
Tree Development Zone. 
FISCAL \OrE HEQURED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03128/06 frac 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
LD 1711 
LR 2951(02) 
An Act To Make Minor Substantive Changes to the Tax Laws 
Fiscal Note for Bill as Amended by Committee Amendment ",4, 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$0 
2006-07 
($2,703) 
Projections 
2007-08 
($11,387) 
Other Special Revenue Funds 
$0 
$0 
$2,703 
($7,153) 
$11,387 
($10,166) 
Fiscal Detail and Notes 
Projections 
2008-09 
($23,065) 
$23,065 
($14,016) 
The changes to the Estate Tax and Individual Income Tax will result in a net General Fund revenue increase of $2,703 
in fiscal year 2006-07. 
General Fund Summary 
Individual Income Tax 
Estate Tax 
$0 
$0 
LR295 I (2) - Fiscal Note - Page 1 of I 
($133,097) 
$135,800 
($185,334) 
$196,721 
($255,519) 
$278,584