An Act Concerning Technical Changes to the Tax Laws
Maine Legislature, Session 122, LD 1546
Committee: Taxation
Sponsors: WOODBURY, PERRY
Amends: 5 MRSA §931, 30-A MRSA §421, 36 MRSA §176-A, 36 MRSA §178, 36 MRSA §200, 36 MRSA §707, 36 MRSA §841, 36 MRSA §1752, 36 MRSA §1754-B, 36 MRSA §1760, 36 MRSA §1952-A, 36 MRSA §195, 36 MRSA §1964, 36 MRSA §2011, 36 MRSA §2551, 36 MRSA §2553, 36 MRSA §2557, 36 MRSA §3234, 36 MRSA §3235, 36 MRSA §3240, 36 MRSA §4062, 36 MRSA §4064, 36 MRSA §4068, 36 MRSA §4365, 36 MRSA §4365-E, 36 MRSA §4366-A, 36 MRSA §4366-D, 36 MRSA §4403, 36 MRSA §4641-H, 36 MRSA §5122, 36 MRSA §5200-A, 36 MRSA §5278, 36 MRSA §6201, 36 MRSA §6210, 36 MRSA §6215, 36 MRSA §6652, 36 MRSA §7103

Legislative Document 
No. 1546 
H.P. 1087 
House of Representatives, April 4, 2005 
An Act Concerning Technical Changes to the Tax Laws 
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WOODBURY of Yarmouth. 
Cosponsored by Senator PERRY of Penobscot. 
Printed on recycled paper 
1J1~ 
1I7.71!dC~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 4MRSA§807-A,2nd~, as amended by PL 1987, c. 497, 
§1 and PL 1997, c. 526, §14, is further amended to read: 
Upon promulgation of and in accordance with rules adopted by 
the 
Supreme 
Judicial 
Court, 
employees 
of 
the 
Department 
of 
Administrative and Financial Services, Bureau of Revenue Services 
may serve civil process and represent the bureau in District 
Court in disclosure proceedings pursuant to Title 14, chapter 
502, ancillary to the collection of taxes for which warrants have 
been issued pursuant to Title 36, and may represent the State Tax 
Assessor in arraignment proceedings in District Court in cases in 
which a criminal complaint has been filed alleging violation of 
Title 36, section 2113 T -6664 or 5332. 
Sec. 2. 5 MRSA §931, sub.§l, ~L.2, as amended by PL 1999, c. 
784, §2, is further amended to read: 
L-2. 
The Director of Econometric Research within the Bureau 
of ~aHa~ieR Revenue Services; 
Sec. 3. 30·A MRSA §421, sub-§12, as enacted by PL 1987, c. 
737, Pt. A, §2 and Pt. C, §106 and amended by PL 1989, c. 6; c. 
9, §2; and c. 104, Pt. C, §§8 and 10, is further amended to read: 
12. 
Service of tax warrant. 
For the 
se~vi8es service of a 
saJ:es--(H"--\:lse tax warrant aRs--aI'-I'-est; as provided by Title 36, 
section 173, the same as for service of civil processT--and--~e~ 
eivi*-a££es~s. 
For collecting sa*es-e~-1:l6e taxes, penalties and 
interest T 
under such warrants, 
for every dollar of the first 
$100, 4¢; for every dollar above $100 and not exceeding $200, 3¢; 
and 
for 
every dollar 
above 
$200, 
2¢. 
Additional 
services, 
including travel, 
saaJ:J: 
ffiY£t 
be charged as provided in this 
section; 
Sec. 4. 30-A MRSA §421, sub-§13, as amended by PL 1989, c. 
502, Pt. A, §112, is repealed. 
Sec. 5. 30-A MRSA §421, next to the last~, as amended by PL 
2003, c. 86, §1, is further amended to read: 
The county commissioners of each county may require that the 
fees collected under subsections 1, 2, 3, 5, 7, 12 T -J:6 and 14 be 
increased by $5, except that the fee paid by any state agency or 
department may only be increased by $1. 
The sheriff or deputy 
shall collect this additional amount and pay it to the county 
treasurer for the use and benefit of the county. 
The county 
commissioners may also require that the fees collected under 
subsections 1 to 14 be increased by an amount equal to the cost 
Page l-LR0533(l) 
• 
of social security and other withholding taxes 
on 
the 
fees 
payable under this section. 
Sec. 6. 36 MRSA §176-A. sub-§3. ,C, as amended by PL 2001, c. 
583, §6, is further amended to read: 
C. 
Any 
person 
who 
fails 
or 
refuses 
to 
surrender 
any 
property or rights to property, subject to levy, upon demand 
by the assessor: 
(1) 
Is liable in person and estate to the State in a 
sum 
equal 
to 
the 
value 
of 
the 
property 
not 
so 
surrendered, but not exceeding the amount of taxes for 
the 
collection 
of 
which 
the 
levy 
has 
been 
made, 
together with costs and 
iate~ests interest at the rate 
determined pursuant to section 186 on the sum from the 
date 
of 
the 
levy. 
Any 
amount, 
other 
than 
costs, 
recovered under this paragraph must be credited against 
the tax liability for the collection of which the levy 
was made; and 
(2) 
Without reasonable cause, is liable for a penalty 
equal 
to 
50% 
of 
the 
amount 
recoverable 
under 
subparagraph (l). 
A part of the penalty may not be 
credited against the tax liability for the collection 
of which the levy was made. 
It is lawful for the assessor to collect the liability as 
Qete~AliaeQ established by this paragraph by J:evy--upon--tse 
pe~seR~s-p£epe~~y-~~-~~a&G&-wits-~h~-~~~~~~-tsis 
seetiea assessment and collection in the manner described in 
this Part. 
Sec. 7. 36 MRSA §178 is enacted to read: 
§178_ Priority of tax 
Whenever the estate of a deceased person liable for any tax 
.is insufficient to pay aJ..L..tD.e debts owed by the d~ 
whenever the estate and effects of an absconding. concealed or 
absent person liable for any tax are levied upon by process of 
law. the tax. together with interest attaching thereto. must be 
first settled. This section may not be construed to give the 
State a preference over any recorded lien that attached prior to 
the date when the tax became due. 
Sec. 8. 36 MRSA §200, sub-§l, as amended by PL 2001, c. 652, 
§6, is further amended to read: 
1. 
Impact of taxes on individuals. The bureau shall submit 
to 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction 
over 
taxation 
matters 
and 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction 
over 
appropriations 
and financial affairs 
a 
report containing the 
information required by this subsection by July 1, 1999 and by 
Qe~eseF January 1st of 
each 
eveH-HRmseFea 
odd-numbered 
year 
thereafter. 
A. 
Part 1 of the report must describe the overall incidence 
of all state, local and county taxes. 
The report must 
present information on the distribution of the tax burden: 
(1) 
For 
the 
overall 
income 
distribution, 
using 
a 
measure 
of 
system-wide 
incidence 
that 
appropriately 
measures equality and inequality; 
(2) 
By 
income 
classes, 
including, 
at 
a 
minimum, 
deciles of the income distribution; and 
(3) 
By other appropriate taxpayer characteristics. 
B. 
Part 2 of the report must describe the impact of the tax 
system on business and industrial sectors. 
The report must: 
(1) 
Describe the impact of taxes on major sectors of 
the business and industrial economy relative to other 
sectors; and 
(2) 
Describe 
the 
relative 
impact 
of 
each 
tax 
on 
business and industrial sectors. 
C. 
When determining the overall incidence of taxes under 
this subsection, the bureau shall reduce the amount of taxes 
collected by the amount of taxes that are returned directly 
to taxpayers through tax relief programs. 
Sec. 9. 36 MRSA §707, sub-§2 is amended to read: 
2. 
Property of veterans. The value of the real property of 
veterans, their widows, widowers and minor children not taxed; 
Sec. 10. 36 MRSA §841, sub-§4, as repealed and replaced by PL 
1979, c. 73, is amended to read: 
4. 
Veteran's 
widow 
or 
widower 
or 
minor 
child. 
Notwithstanding failure to comply with section 706 or section 
1181, the assessors, on written application within one year from 
the date of commitment, may make such abatement as they think 
proper in the case of the unremarried widow or widower or ~ 
• 
minor child of a veteran, whieh if the widow, widower or child 
would be entitled to an exemption under section 653, subsection 
1, paragraph D, except for her or his failure to make application 
and file proof within the time set by section 653, subsection 1, 
paragraph G, provided that the veteran died during the l2-month 
period preceding the April 1st for which the tax was committed. 
Sec. 11. 36 MRSA §1752. sub-§I-B, as amended by PL 1995, c. 
281, §ll and affected by §42, is further amended to read: 
I-B. 
Automobile. "Automobile," for purposes of subsection 
l1-Ar-~~~-W 17-B, 
means 
a 
self-propelled 4-wheel motor 
vehicle designed primarily to carry passengers and not designed 
to run on tracks. 
Sec. 12. 36 MRSA §1752, sub-§I-D, as amended by PL 1989, c. 
847, §l, is further amended to read: 
I-D. 
Casual 
sale. 
"Casual 
sale" 
means 
an 
isolated 
transaction in which tangible personal property or 
a 
taxable 
service is sold other than in the ordinary course of repeated and 
successive transactions of like character by the person making 
the sale. "Casual sales ~" iRell:l.E1e includes transactions ~ 
bazaar, fair, rummage sale, picnic or similar everu;. by a civic, 
religious 
or 
fraternal 
organization 
whieh 
.t.ha.t 
is 
not 
a 
regi s tered retai ler 
at.--a--Saz.aaFr--f-a-i-£,-.--F-~-5-a.J.e..,--p-i-o-n-i-o--eF 
siffiiJa£--eveRt.. 
The sale by a 
registered retailer of tangible 
personal property whieh ~~ that retailer has used in the course 
of the retailer's business is not a 
~eael:l.a*-sa*e~ casual sale if 
that property is of like character to that sold by the retailer 
in the ordinary course of repeated and successive transactions. 
"Casual 
sale" 
does 
not 
include 
any 
transaction 
in which 
.Q 
retailer 
slili 
tangible 
personal 
property 
is---sG-14---by---a 
FepFeseRt.at.ive-~~--t;he-~~~-~~~-wAeB-~~-FepFeseRt;at;ive 
is-~-r~i&t~r~-Fet;aileF--a~~~~-Fe~ist.eFeEl--£'~-a~.J.e-£'-~~~-have 
t;he--saffie--E1l:1.t;ies--Fespeet;iR~--aRy--sl:l.eh--t;FaRsaet;ieR--as--i~--t;he 
FepFeseRtatiye--had--so-1<l-~a-tAe--£'-€¥~-at-:i-ve-'-s--GWn--aeeel:l.Rt. QL-a 
taxable service on behalf of the owner of that property or the 
provider of that service. 
Sec. 13. 36 MRSA §1752. sub-§7-C, as enacted by PL 1987, c. 
343, §3, is amended to read: 
1-C. 
Nonprofit. 
"Nonprofit" 
ffieaRS 
refers 
to 
an 
organization which 
has 
been determined by 
the United States 
Internal Revenue Cod~ to be exempt from taxation under t.he-YRit.eEl 
St;ates-~RteFRal-ReveRl:I.e-GeEleT Section 501(c) of the Code. 
Sec. 14. 36 MRSA §1752, sub-§l1, 1JA, as amended by PL 2003, c. 
588, §3, is further amended to read: 
A. 
"Retail sale" includes: 
(1) Conditional sales, installment lease sales and any 
other transfer of tangible personal property when the 
ti tIe is retained as security for the payment of the 
purchase price and is intended to be transferred later; 
and 
(2) Sale of products for internal human consumption to 
a 
person 
for 
resale 
through 
eeiR-epe~a~eQ vending 
machines when sold to a person more than 50"& of whose 
gross 
receipts 
from 
the 
retail 
sale 
of 
tangible 
personal 
property 
are 
derived 
from 
sales 
through 
vending machines. 
The tax must be paid by the retailer 
to the State. 
Sec. 15. 36 MRSA §1752, sub-§l1, ,B, as amended by PL 2003, c. 
390, §7, 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 
aQQie--e~ video 
media 
and 
aQQie--e~ video 
equipment, of 
aQQ~-eF video media 
eF--a~E1ie 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 television services, of cable converter 
boxes and remote-control units for rental or lease; or 
(7) 
The sale, to a person engaged in the business of 
renting furniture, or audio media and audio eguipment 
of furniture, audio media or audio equipment for rental 
pur§Jlant to a rental-purchase agreement as defined in 
Title 9-A, section 11-105. 
Sec. 16. 36 MRSA §1752, sub-§15, as amended by PL 1999, c. 
521, Pt. A, §5 and affected by §11, is further amended to read: 
15. 
Storage. "Storage" includes any keeping or retention in 
this State of tangible personal property pY~9hasee-at-~etai*-sa*e. 
Sec. 17. 36 MRSA §1752, sub-§21, as amended by PL 1965, c. 
361, is further amended to read: 
21. 
Use. "Use" includes the exercise in this State of any 
right or power over tangible personal property incident to its 
ownership 
whea--pu-t'~-&y.--the-~l'--a~-~-&Ga-i-l--sa*e, including 
the derivation of income, whether received in money or in the 
form of other benefits, by a lessor from the rental of tangible 
personal property located in this State. 
Sec. 18. 36 MRSA §1754-B, sub-§l, "D and F, as enacted by PL 
1995, c. 640, §3, are amended to read: 
D. 
Every geasi~aeeT-~~~-salespe~s9a person that makes 
retail sales in this State of tangible personal property or 
taxable services on behalf of a principal that is outside of 
this State if the principal is not the holder of a valid 
registration certificate; 
F. 
Every person that manages or operates a hotel, rooming 
house or tourist or trailer camp in this State or collects 
or receives rents from a hotel, rooming house or tourist or 
trailer camp; aae 
Sec. 19. 36 MRSA §1754-B. sub-§l, ,G, as amended by PL 1997, 
c. 504, §8, is further amended to read: 
G. 
Every seller of tangible personal property or taxable 
services that has a substantial physical presence in this 
State sufficient to satisfy the requirements of the due 
process 
and 
commerce 
clauses 
of 
the 
United 
States 
Constitution. 
The following activities do not constitute a 
substantial 
physical 
presence 
for 
the 
purpose 
of 
this 
paragraph: 
( 1) 
Solicitation of business in this State through 
catalogs, 
flyers, 
telephone or electronic media when 
delivery of ordered goods is effected by the United 
States 
mail 
or 
by 
an 
interstate 
3rd-party 
common 
carrier; 
(2) 
Attending trade shows, seminars or conventions in 
this State; 
(3) 
Holding 
a 
meeting 
of 
a 
corporate 
board 
of 
directors or shareholders or holding a company retreat 
or recreational event in this State; 
(4) 
Maintaining a bank account or banking relationship 
in this State; or 
(5) 
Using a vendor in this State for printing, drop 
shipping or telemarketing servicesT~ 
Sec. 20. 36 MRSA §1754-B, sub-§l, 1[" is enacted to read: 
H, 
Eyery person that makes retail sales in this State of 
tangible personal property or taxable services on behalf of 
the owner of that property or the provider of those services. 
Sec. 21. 36 MRSA §1760, sub-§23-C, as affected by PL 2003, c. 
614, §9 and amended by c. 688, Pt. B, §12 and affected by §13, is 
further amended to read: 
23-C. 
Certain 
vehicles 
purchased 
or 
leased 
by 
nonresidents. 
Sales or leases of the following vehicles to a 
nonresident 
if 
the 
vehicle 
is 
intended 
to 
be 
driven 
or 
transported outside the State immediately upon delivery: 
A. 
Motor vehicles, except 
a\;lt:emebi,les-~-ent.-ed--feF--a--~eFieEl 
ef-~~~~-~~~~-yeaFT all-terrain vehicles and snowmobiles 
as defined in Title 12, section 13001 and automobiles rented 
for a period of less than one year; 
B. 
Semitrailers; 
C. 
Aircraft; and 
E. 
Camper trailers, including truck campers. 
If the vehicles are registered for use in the State within 12 
months of the date of purchase, the person seeking registration 
is liable for use tax on the basis of the original purchase price. 
Notwithstanding section 1752-A, for purposes of this subsection, 
the term "nonresident" may include an individual, an association, 
a society, a club, a general partnership, a limited partnership, 
a 
Elemest:ie--<H"--feFeiIJB limited liability company, 
a trust, 
an 
estate, a 
Eiemesl;ie--o-r--fe!'ei~B corporation and any other legal 
entity. 
Sec. 22. 36 MRSA §1760, sub-§25, as amended by PL 1999, c. 
708, §27 and affected by §52, is further amended to read: 
25. 
Watercraft sold to nonresidents. 
Sales of watercraft 
iB-~Ris-S~a~e to a nonresident, when s~eR-e!'af~ the watercraft is 
ei~Re!'-~~~~~-~~~-~Re-~~~-~--Eielive!'eEi--~-~~-Sl;al;e 
intended 
to 
be 
sailed 
or 
transported 
outside 
the 
State 
immediately upon delivery by the seller; sales to a nonresident, 
under contracts for the construction of aBY--&l*ea .a watercraft 
inllJ.lJ:l.eJ;l to be 
se-~~i-y.e!'eEi sailed or transported outside the 
State immediately upon delivery by the seller, of materials to be 
incorporated in the watercraft; and sales to a nonresident for 
the repair, alteration, refitting, 
reconstruction, overhaul or 
restoration of aBy-s~eR g watercraft intended to be se-EieliveFea 
sailed or transported outside the State immediately upon delivery 
by 
the 
seller, 
of 
materials 
to 
be 
incorporated 
in 
the 
watercraft. 
Unless the watercraft is present in the State, for a 
purpose other than temporary storage, 
for 
more 
than 
days 
during the 12-month period following its date of purchase or is 
registered in Maine without also being registered in another 
state or documented with a location in this State, wi thin 12 
months of the date of purchase, the purchaser is exempt from the 
use tax. 
Notwithstanding section 1752-A, for purposes of this 
subsection, the term "nonresident" may include an individual, an 
association, a society, a club, a general partnership, a limited 
partnership, a 
Eiemes~ie--o-r--~e!'ei~B limited liability company, a 
trust, an estate, a 
Eiemes~ie-e!'-fe!'ei~B corporation and any other 
legal entity. 
Sec. 23. 36 MRSA §1760. sub-§34, as repealed and replaced by 
PL 1981, c. 163, §4, is amended to read: 
34. 
internal 
Sales 
human 
through vending machines. Sales of 
consumption 
when 
sold 
through 
by 
a 
person more 
than 
50% 
of 
retail sale of tangible personal 
through vending machines. 
vending machines 
receipts from the 
derived from sales 
products for 
eeiB-epe!'a~eEi 
whose gross 
property are 
Sec. 24. 36 MRSA §1760. sub-§45, as amended by PL 1999, c. 
708, §29, is further amended to read: 
45. 
Certain property purchased outside State. 
Sales of 
property purchased and used by the present owner outside the 
State: 
A. 
If the property is an automobile, as defined in Title 
29-A, section 101, subsection 7, and if the owner was, at 
the time of purchase, 
a resident of the other state and 
either employed or registered to vote there; 
A-I. 
If the property is a watercraft 9~-aJJ-te~~aiR-yeRieJe 
that is registered outside the State by an owner who at the 
time of purchase was a resident of another state and the 
watercraft 
9~--a-l-1--t-e-r~-a-i,.n..-Y9Riele is present in the State 
not more than 30 days during the 12 months following its 
purchase for a purpose other than temporary storage; 9~ 
A-2. 
If the property is a snowmobile or all-terrain vehicle 
as defined in Title 12, section 13001 and the purchaser is 
not a resident of the State; or 
B. 
For more than 12 months in all other cases. 
~9~-~~~~~~-~-~~~-&~&&ee~i9Rr-~~6e~-~~-iRe~~-st9~a~eT 
&yt--m&aR&-~~~~-~~l-~~-~-k~-~~~~--~e~--a--py~pese 
e9RsiS\leRt--w-~--.i-t.-&--Elesi~RT 
Property, other than automobiles, 
watercraft. 
snowmobiles 
and 
all-terrain 
vehicles, 
that 
is 
required to be registered for use in this State does not qualify 
for ~ 
exemption unless it was registered by its present owner 
outside this State more than 12 months prior to its registration 
in this State. 
~-2P-e_rty reguj.red tQ_~fLJit9istered (Q~------.Y1Le_ in 
this State was nQt required tQ be registered for use Qutside this 
State, the Qwner must be able to document actual use Qf the 
prQperty Qutside this State fQr more than 12 mQnths prior tQ its 
registratiQn in this State. 
For purpQses 
Qf this subsectiQRL 
"use" 
dQes 
not include stQrage but means 
actual use of the 
prQperty for a purpose consistent with its design. 
Sec. 25. 36 MRSA §1952-A, as amended by PL 2003, c. 414, Pt. 
B, §64 and affected by c. 614, §9, is further amended to read: 
§1952-A. Payment of tax on vehicles and recreational vehicles 
The tax imposed by eRapte~s-611-t9-669 this Part on the sale 
or 
use 
of 
any 
vehicle. 
snQwmobile. 
all-terrain 
veh~ or 
watercraft must, 
except where 
the dealer 
e~--tRe--yeRiele--e~ 
wate~e~a~t has 
collected the 
tax 
in full, 
be 
paid 
by 
the 
purchaser or other person seeking registration of the vehicleL 
snQwmQbile, all-terrain vehicle or watercraft at the time and 
place of registration 
e~--t.-he---...eh-i-o-li:r-G-F--wate~e~a~t. In the case 
of vehicles eHeept-~~~~-~-~~~-~F-F-aiR-yeRieles, the tax 
must be collected by the Secretary of State and transmitted to 
the Treasurer of State as provided by Title 29-A, section 409. 
In the case of watercraft, snowmobiles and all-terrain vehicles, 
the tax must be collected by the Commissioner of Inland Fisheries 
and Wildlife 
and 
transmitted 
to 
the 
Treasurer 
of 
State 
as 
provided by Title 12, sections 13002 to 13005. 
, 
>-
Sec. 26. 36 MRSA §195-', as amended by PL 1979, c. 541, Pt. B, 
§46, is further amended to read: 
§1953. Tax a debt; recovery; preference 
The taxes, interest and penalties imposed by chapters 7 and 
to 225, from the time t:he--s-ame--sha-l-l--se they are due, shall 
se ~ 
a personal debt of the retailer or user to the State 
e~ 
MaiRe, recoverable in any court of competent jurisdiction in a 
civil action in the name of the State 
e~--Mai.fl.-e,,--and--&aa-l-l--haye 
p~e~e~eRee-~-a~y-~~~~~~~-~~--~&&-~~-e~-~~-t:aHpaye~r 
whet:he~-~~-&a-a*~~~~~~r-J~~eJ¥e~ey-~--et:he~wise. ~he-~~-e~ 
aRy-~~e~~eRt:-est:aiRee-shall-se-paie-t:e-t:he-~aH-Assesse~T 
Sec. 27. 36 MRSA §1964 is repealed. 
Sec. 28. 36 MRSA §2011, as amended by PL 1987, c. 772, §25, 
is further amended to read: 
§2011. Overpayment; refunds 
If 
the 
State 
Tax 
Assessor 
determines, 
upon 
written 
application by a taxpayer or during the course of an audit, that 
any tax under this Part has been paid more than once or has been 
erroneously or illegally collected or computed, he the assessor 
shall certify to the State Controller the amount eelleet:ee llQ.id 
in excess of that legally duer-~~~~-i~-wa6-~~~~~~-sy 
whe~-~~-~-t:hat:. 
That amount shall ~ 
be credited by the 
St:at;e--~aH--A&&e&se~ assessor on 
any taxes 
then due 
from the 
taxpayer and the balance refunded to the taxpayer or his .t.he. 
taxpayer's 
successorr--a4miai&~~~~&r-~~~-~--assi~Rs in 
interest, but no such credit or refund may be allowed unless 
within 3 years from the date of overpayment either a written 
peti tion 
t:he~e~e~r stating the grounds upon which .t.he. refund or 
credit is claimed r is filed with the St:at:e-~aH-A~~e66eE assessor 
or the overpayment is discovered on audit wit:hiR-~-~~~~-t:he 
eat:e-«--e ... erpay~eRt:. 
Interest r at the rate determined pursuant 
to section l86 r --&aall 
mus~ be paid on any balance 
refunded 
pursuant to this chapter from the date the return listing the 
overpayment 
was 
filed r 
or 
the 
date 
the 
payment 
was 
made, 
whichever is later, 
eR-~-~~~-Ee~~RQee-~~~-~~-t:his 
ehapt:e~r except that no interest may be paid with respect to the 
refunds provided by section 2013 and, in cases of excessive or 
erroneous collections 
speeif.iee-..,i-n-~i<Hl--1814, interest shall 
must be paid in accordance with section 1814, subsection 3. 
At 
the election of the 
St:at;e--~aH--A&s-e&&e~ assessor, 
unless the 
taxpayer specifically requests a cash refund, the refund may be 
credited to the taxpayer's sales and use tax account, but, in the 
case of a creditr no further interest may accrue from the date of 
that election. 
Ne~BiB~-may-aa~aeFise-~ae The taxpayerT-eF-aRyeRe 
ae~iB~-iR-a~s-aeaal'T-~e may not apply for a refund of any amount 
assessed when administrative and judicial review under section 
has been completed. 
ARy A taxpayer dissatisfied with the decision of the 
S~ate 
~all-A6-6e66el' ~_SAQI, upon a written request for refund filed 
under 
this 
sectionT 
may 
request 
reconsideration 
and 
appeal 
~ael'e'Fem from the reconsideration to the Superior Court in the 
same manner and under the same conditions as in the case of 
assessments made under 
eBap~eEs chapter 7 
aRQ--J-l-l---t.-&--~~§. The 
decision of the 
State-~-aH---Assessel' assessor upon saea £ written 
request for refund saall-aeeeme becomes final as to law and fact 
in the same manner and under the same condi tions as in the case 
of assessments made under eaap~eEs chapter 7 aRQ-all-te-aa§. 
Sec. 29. 36 MRS A §2551, sub-§6, as enacted by PL 2003, c. 673, 
Pt. V, §25 and affected by §29, is amended to read: 
6. 
Mobile 
telecOlMllunications 
services. 
"Mobile 
telecommunications 
services" 
means 
commercial 
mobile 
radio 
service as defined in 47 Code of Federal Regulations, Section 
20.3 
as 
in effect on Jaly Jupe 
1, 
1999. 
For 
purposes 
of 
sourcing, "mobile telecommunications services" does not include 
air-ground 
radiotelephone 
service 
as 
defined 
in 
Code 
of 
Federal Regulations, Sectio~ 22.99 as in effect on June 1, 1999. 
Sec.30. 36 MRSA §2551. sub-§7-A is enacted to read: 
7-A. 
ROD,profit. 
"Nonprofit" refers to an organization that 
has been determined by the United States Internal Revenue Service 
to be exempt from taxation under Section 501(e) of the Code. 
Sec. 31. 36 MRSA §2553, sub-§§3 and 4, as enacted by PL 2003, 
c. 673, Pt. V, §25 and affected by §29, are amended to read: 
3. 
Making sales after revocation. 
A person whose service 
provider tax registration certificate has been revoked by the 
assessor pursuant to this section and 
who 
continues to make 
I'eta~l sales in this State of 
one or more 
of the services 
identified in section 2552 commits a Class D crime. Violation of 
this subsection is a strict liability crime as defined in Title 
17-A, section 34, subsection 4-A. 
4. 
Failure to register. 
A person who is required by this 
section to register as a service provider with the assessor and 
who makes 
I'e~a~l sales in this State of one or more of the 
services identified in section 2552 without being so registered 
commits a Class E crime. Violation of this subsection is a strict 
Page ll-LR0533(1) 
'. 
liability crime as defined in Title 17-A, section 34, subsection 
4-A. 
Sec. 32. 36 MRSA §2557, sub-§§29 and 30, as enacted by PL 2003, 
c. 673, Pt. V, §25 and affected by §29, are amended to read: 
29. 
Centers 
for 
innovation. 
Sales 
to 
centers 
for 
innovation as described in Title 5, section 13141; aBe 
30. 
Sales for resale. 
Sales of services to another service 
provider for resaleT~ 
Sec. 33. 36 MRSA §2557, sub-§31 is enacted to read: 
n. COP.s..t.,I]"~Q~QI1_t!:~.t~L.JI'.i~e.Umpt orgNlizatiQIYI. Sales 
to a construction contrac~or its SuQcontractor of fabrication 
services that are to be physically incorporated in, and become a 
permanent part of, real property for sale to any organization or 
government agency provided exemption under this section, except 
as otherwise prov~ 
Sec. 34. 36 MRSA §3234, as amended by PL 1995, c. 271, §12, 
is repealed. 
Sec. 35. 36 MRSA §3235, as amended by PL 2003, c. 390, §19, 
is further amended to read: 
§3235. Tax a debt; recovery 
The taxes, interest and penalties imposed by chapters 7, 451 
and 459, from the time they are due, are ~ personal debt of the 
supplier, distributor, importer, retailer or user to the State, 
recoverable in any court of competent jurisdiction in a civil 
action in the name of the StateT--and--a-a.ve--pF&aF&aGe--...i.-n--aBY 
eis~~i9Q~ieB--~--~he--~~--e~--~~--~aHpaye~T--~~---iB 
9aB*~QpteYT--...i.~~~-~~--9~he~wise. 
~he--~~~-~~--aBY 
}Qe~ffieBt-e9~aiBee-ffiQst-ge-paie-te-the-S~ate-~aH-Assesse~T 
Sec. 36. 36 MRSA §3240, as amended by PL 1985, c. 127, §1, is 
repealed. 
Sec. 37. 36 MRSA §4062, sub-§4, as enacted by PL 1981, c. 451, 
§7, is repealed. 
Sec. 38. 36 MRSA §4062, sub-§7, as enacted by PL 1981, c. 451, 
§7, is amended to read: 
7. 
Transfer. "Transfer" includes the passing of property or 
any interest therein, 
in possession or enjoyment, 
present or 
future, 
by inheritance, 
descent, 
devise, 
succession, 
bequest, 
grant, deed, bargainT sale, gift or appointment in the manner 
described in this chapter. 
Sec. 39. 36 MRSA §4064, first " 
as amended PL 2003, c. 673, 
Pt. D, §4, 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, the tax imposed by this section applies 
as if the trust did not e"xist 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 ~aHeQ in this State ~ha~-~~~~~~~~-~~--~-eFeQ~~ bears 
to the value of the decedent's federal gross estate. All property 
val ues under this section are as finally determined for federal 
estate tax purposes, except that for estates of decedents dying 
after December 31, 2002 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 estate tax under this 
section is computed without regard to whether the specific real 
or tangible personal property located in the State is marital 
deduction property. 
Sec. 40. 36 MRSA §4068, as amended by PL 2003, c. 673, Pt. D, 
§6 and affected by §9, is further amended to read: 
§4068. Tax due date; filing of return and payment of tax 
1. 
Date due. 
~he--t-aii--.,imf>e-seQ--&y--t-h-i-5--ehapt;eF 
E~.c.e.p~ 
otherwise provided by this chapter, 
a return reguired by this 
section is due 
months after the date of the decedent's death 
and any tax due under this chapter is due at the same time. 
Interest shall-aeeEy.e accrues on any amount of tax not paid by 
t;ha~ the due date. 
2. 
Returned required. 
~R-a~~-~~~-~~-t~~-~~-a-MaiRe 
es~a~e--t.aK--l-:i,..ab.~l-*Y-r-t:he The personal representative shall pay 
t;he--t-a-lf--~~.e4--By--t-h-i-s--d}ap-t-e.£--aRQ file a 
Maine estate 
t~ 
return 
wi~hiR--9--1Il9R~hs--iH:..t-e-r--~he-~'~-EleaUI ... --;r-he--Fet;y.FR 
lIlY.st;-~-~~-~h&-~9FIIl-~e-S€~.,i~Q-~-~h&-S~at;e-~~~-Assess~--a-aG-it; 
IIlYS~_~~~_&y_a_~_~~_t;he_~eQe~~~_~~~_~lf-_Fet;y.FRT 
Page l3-LR0533(1) 
~~-~£Y7-~~~~-S~ppeF&iB~-Qe€QmeR~a~4eR-~~-~~-aSs&S&&F-may 
Fe~Q~FeT whenever: 
A. 
The Code requires that a federal estate tax return be 
filed: or 
B. 
Th..e. federal 
gross_e...§..t£.~e, increased by the amount-Q{ 
adjusted taxable gifts made by the decedent after December 
31, 1976 and by the aggregate amount of any specific gift 
tax exemption under former Code, Section 2521 used by the 
decedent after September 8, 
1976 exceed the exclusion and 
related unified credit amounts specified in section 4062, 
subsection I-A. 
The return must be in the form prescribed by the State Tax 
Assessor and it must be accompanied by a copy of the federal 
estate tax return, if any, and by other supporting documentation 
that the assessor may requ~ 
3. 
No returned required. 
In all cases where tReEe-...,i.s...-Be 
MaiRe--e&t-at.-e--~-aK--Ha.9UHy a 
Maine estate tax return is not 
required to be filed, 
the personal 
representative, 
surv~v~ng 
joint tenant of real estate or any other person whose real estate 
might be subject to a lien for taxes pursuant to this chapter may 
at any time file with the assessor in the form prescribed by the 
assessor a statement of the value of the federal gross estate. 
Sec. 41. 36 MRSA §4365, as amended by PL 2003, c. 705, §6, is 
further amended to read: 
§4365. Rate of tax 
A tax is imposed on all cigarettes imported into this State 
or held in this State by any person for sale at the rate of 41 5Q 
mills for each cigarette. 
Payment of the tax is evidenced by the 
affixing of stamps to the packages containing the cigarettes. 
Sec. 42. 36 MRSA §4365-E. sub-§§1 to 3, as enacted by PL 2001, 
c. 439, Pt. SSSS, §2, are amended to read: 
1. 
Stamped rate. 
Cigarettes stamped at the rate of 37 
mills per cigarette and held for resale after September 30, 2001 
are SUbject to tax at the rate of 41 5Q mills per cigarette. 
2. 
Liabi1ity. 
A person possessing cigarettes for resale is 
liable for the difference between the tax rate of 41 5Q mills per 
cigarette and the tax rate of 37 mills per cigarette in effect 
before October 1, 2001. 
Stamps indicating payment of the tax 
imposed 
by this section must be affixed to all packages of 
cigarettes held for resale as of October 1, 2001, except that 
cigarettes held in vending machines 
as of that date 
do 
not 
require that stamp. 
3. 
Vending machines. 
Notwithstanding any other provlslon 
of this chapter, 
it is 
presumed that all cigarette vending 
machines are filled to capacity on October 1, 2001 and that the 
tax imposed by this section must be reported on that basis. 
A 
credit against this inventory tax must be allowed for cigarettes 
stamped at the rate of 
mills per cigarette placed in 
vending machines before October 1, 2001. 
Sec. 43. 36 MRSA §4366-A, sub-§2, "B and C, as enacted by PL 
2001, c. 439, Pt. SSSS, §3, are amended to read: 
B. 
For stamps at the face value of 41 50 mills sold prior 
to July 1, 2002, 2.16%; and 
C. 
For stamps at the face value of 41 50 mills sold on or 
after July 1, 2002, 2.03%. 
Sec. 44. 36 MRSA §4366-D, as enacted by PL 2001, c. 450, Pt. 
D, §1, is repealed. 
Sec. 45. 36 MRSA §4403, sub-§§l and 2, as amended by PL 1989, 
c. 588, Pt. D, §4, are further amended to read: 
1. 
Smokeless tobacco. 
A tax is imposed on all smokeless 
tobacco, including chewing tobacco and snuff, at the rate of eQ% 
9'-~~-W~~&&~-~~~e~-~-~-ge~iBBiB~-~~--~r-~~~~i-~~-9' 
tRe-w£~~e~~~e-~~-~~~-ge~iBBiB~-~~B~~~Y-~~--~~~~r-aBQ 62% of 
the wholesale sales price ge~iBBiB~-J~ly-lT-lggl. 
2. 
Other tobacco. 
A tax is imposed on cigars, pipe tobacco 
and other tobacco intended for smoking at the rate of 1~%-9E-~Re 
wR9lesale--&&~&-~-~-~~~-Ge~9ge~--~r--~r-~~-e~--~Re 
wR9lesale-~~~e~-~-~-&~1aa1~-JaBQa~Y-~~--~~~~r-aBQ 16% of the 
wholesale sales price ge~iBBiB~-J~ly-1T-lggl. 
Sec. 46. 36 MRSA §4641-H, as enacted by PL 1975, c. 572, §1 
and amended by P&SL 1975, c. 78, §21, is repealed. 
Sec. 47. 36 MRS A §4641-I, as amended by PL 1981, c. 364, §61, 
is repealed. 
Sec. 48. 36 MRSA §5122, sub-§l, ,N, as amended by PL 2003, c. 
588, §14, is further amended to read: 
N. 
With respect to property placed in 
taxable 
year, 
an 
amount 
equal 
to 
the 
depreciation or expensing attributable to: 
service during the 
net 
increase 
in 
(1) For taxable years beginning on or after January 1, 
2002 
but prior 
to 
January 
1, 
2006, 
a 
30% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 101 of the federal Job Creation and Worker 
Assistance Act of 2002, Public Law 107-147 with respect 
to property placed in service during the taxable year: 
(2) For taxable years beginning on or after January 1, 
2002 
but 
prior 
to 
January 
1, 
2006, 
a 
50% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 201 of the federal Jobs 
and Growth Tax 
Relief Reconciliation Act of 2003, Public Law 108-27 
with respect to property placed in service during the 
taxable year: and 
(3) For taxable years beginning on or after January 1, 
2003 but prior to January 1, 
2006, 
the increase in 
aggregate cost e;!,aimeEi ~ 
under Section 179 of the 
Code pursuant to Section 202 of the federal Jobs and 
Growth Tax Relief Reconciliation Act of 2003, Public 
Law 108-27: 
Sec. 49. 36 MRSA §5122. sub-§2. ,B. as amended by PL 2003, c. 
705, §10 and affected by §14, is further amended to read: 
B. 
An amount equal to the reduction in salaries and wages 
expense for federal income tax PYIposes associated with the 
taxpayer's federal 
work 
opportunity credit as 
determined 
under the Code, Section 51 or empowerment zone employment 
credit as determined under the Code, Section 1396: 
Sec. 50. 36 MRSA §5122, sub-§2, ,M. as amended by PL 2003, c. 
391, §5, is further amended to read: 
M. 
For 
pension 
each 
individual 
benefits 
under 
who 
is 
a 
an 
employee 
amount that is the lesser of: 
primary recipient 
retirement plan, 
of 
an 
(1) 
Six thousand dollars reduced by the total amount 
of 
the 
individual's 
social 
security 
benefits 
and 
railroad retirement benefits paid by the United States, 
but not less than $0. 
The reduction does not apply to 
benefits paid under a military retirement plan: or 
(2) 
The aggregate of pension benefits under employee 
retirement plans included in the individual's federal 
adjusted gross income. 
For purposes of this paragraph, the following terms have the 
following 
meanings. 
"Primary 
recipient" 
means 
the 
individual upon whose earnings the employee retirement plan 
benefits 
are 
based 
or 
the 
surviving 
spouse 
of 
that 
individual. 
"Pension benefits" means 
employee 
retirement 
plan benefits reported as pension or annuity income for 
federal 
income 
tax 
purpose_~ 
"Employee 
retirement plan" 
means a state, federal or military retirement plan or any 
other retirement benefit plan established and maintained by 
an employer for the benefit of its employees under the Code, 
Section 401(a), Section 403 or Section 457(b), except that 
distributions made pursuant to a 
see~ieR Section 457(b) plan 
are 
not 
eligible 
for 
the 
deduction 
provided 
by 
this 
paragraph if they are made prior to age 55 and are not part 
of a series of substantially equal periodic payments made 
for the life of the primary recipient or the joint lives of 
the 
primary 
recipient 
and 
that 
recipient's 
designated 
beneficiary. 
"Employee retirement plan" does not include an 
individual retirement account under Section 408 of the Code, 
a 
Roth 
IRA 
under Section 408A of the Code, 
a 
rollover 
individual retirement account, a simplified employee pension 
under Section 408 (k) of the Code or an ineligible deferred 
compensation 
plan 
under 
Section 
(f) 
of 
the 
Code. 
QeRe~i~s Pension benefits under an employee retirement plan 
do not include distributions that are subject to the tax 
imposed by the Code, Section 72(t). 
"Military retirement 
plan" means benefits received as a result of service in the 
active or reserve components of the Army, Navy, Air Force, 
Marines or Coast Guard; 
Sec. 51. 36 MRSA §5200-A. sub-§l, ~N, as amended by PL 2003, 
c. 588, §16, is further amended to read: 
N. 
With respect to property placed in service during the 
taxable 
year, 
an 
amount 
equal 
to 
the 
net 
increase 
in 
depreciation or expensing attributable to: 
(1) For taxable years beginning on or after January 1, 
2002 
but 
prior 
to 
January 
1, 
2006, 
a 
30% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 101 of the federal Job Creation and Worker 
Assistance Act of 2002, Public Law 107-147 with respect 
to property placed in service during the taxable year; 
(2) For taxable years beginning on or after January 1, 
2002 
but 
prior 
to 
January 
1, 
2006, 
a 
50% 
bonus 
depreciation deduction claimed by the taxpayer pursuant 
to Section 201 of the federal Jobs 
and Growth Tax 
Relief Reconciliation Act of 2003, Public Law 108-27 
\ 
with respect to property placed in service during the 
taxable year; and 
(3) For taxable years beginning on or after January 1, 
2003 but prior to January 1, 
2006, 
the increase in 
aggregate cost elaiRleEl used under Section 179 of the 
Code pursuant to Section 202 of the federal Jobs and 
Growth Tax Relief Reconciliation Act of 2003, Public 
Law 108-27; 
Sec. 52. 36 MRS A §5200-A, sub-§2, ,C, as amended by PL 2003, 
c. 705, §13 and affected by §14, is further amended to read: 
C. 
An amount equal to the reduction in salaries and wages 
expense f~deral income tax purposes associated with the 
taxpayer's federal 
work opportunity credit as determined 
under the Code, Section 51 or empowerment zone employment 
credit as determined under the Code, Section 1396; 
Sec. 53. 36 MRSA §5200-A, sub-§2, ,H, as amended by PL 2003, 
c. 390, §44 and affected by §53, is further amended to read: 
H. 
For each taxable year subsequent to the year of the 
loss, 
an amount equal to the absolute value of the net 
operating loss arising from tax years beginning on or after 
January 1, 1989 but before January 1, 1993 and the absolute 
value of the amount of any net operating loss arising from 
tax years beginning on or after January 1, 2002, for which 
federal adjusted gross income was increased under subsection 
1, paragraph H and that, pursuant to the Code, Section 172, 
was carried back for federal income tax purposes, less the 
absolute value of loss used in the taxable year of loss to 
offset any addition modification required by subsection 1, 
but only to the extent that: 
(1) 
Maine taxable income is not reduced below zero; 
(2) 
The taxable year is wi thin the allowable federal 
period for carry-over; and 
(3) 
The 
amount has 
not been previously used as 
a 
modification pursuant to this subsection; 
Sec. 54. 36 MRSA §5278, sub-§5, ,B, as amended by PL 1989, c. 
530, §3, is further amended to read: 
B. 
If 
the 
claim 
for 
overpayment attributable 
arising from a tax year 
a 
credit 
carry-back, 
credit or 
refund 
relates 
to 
an 
to a net operating loss carry-back 
beginning before January 1, 2002 or 
the 
claim 
may 
be 
made, 
under 
Fe~Q*atieRS-~Fe6eFiBea rules adopted by the assessor, within 
the period wsies .tha.t ends with the 
eH~ii<at.iefi-~-tse 15th 
day of the 40th month following the end of the taxable year 
of the net operating loss or the unused credit wsies that 
resulted in sQes the carry-back or the period prescribed in 
subsection 3 in respect of sQes that taxable year, whichever 
expires later eFr-wit.s_. __ 
WJth respect to any portion of a 
credit carry-back from a taxable year that is attributable 
to 
a 
net operating 
loss 
carry-back 
or 
a 
capital 
loss 
carry-back from a subsequent taxable year, the period within 
which the claim may be made ssa;!,;!,-~~~~~~-wsies ends 
with the 
eH~ii<at.iefi--ef--tse 15th day of the 40th month 
following the end of sQes ~ 
subsequent taxable year or the 
period prescribed in subsection 3 in respect of sQes that 
taxable year, whichever expires later. 
Sec. 55. 36 MRSA §6201, sub-§12, as amended by PL 
2001, c. 
396, §4l, is further amended to read: 
12. 
Year for which relief is requested. "Year for which 
relief is requested" means the calendar year preceding that in 
which the claim is filed. 
For a claim filed during January to 
May of any year, or during the extension period allowed under 
section 6215, 
"year for which relief is reguested" means 
the 
calendar year 2 years preceding that in which the claim is filed. 
Sec. 56. 36 MRSA §6210. as amended by PL 1997, c. 557, Pt. A, 
§4 and affected by Pt. G, §l, is further amended to read: 
§6210. Administration 
The State Tax Assessor shall make available suitable forms 
with instructions for claimants. The claim ssa;!,;!, ~ 
be in the 
form prescribed by the Stoate-!J'-a-K- J'.ssesso-r--ill-a.y.-~FeseFiBe assessor 
and ssa*;!, ~ 
be signed by the claimant. 
The 
Stoate-~aH-A~6e66eF assessor shall include a checkoff to 
request 
an application for 
the 
Maine 
Residents 
Property Tax 
Program on the individual income tax form. 
The assessor shall 
also 
provide 
feF--tse 
~.P..9P'~Ji option ef 
.fQ..r. 
filing 
an 
application for the Maine Residents Property Tax Program 
QSiR~ 
tose-toe;!,efi;!,e-sy6~em-es~aB*issea-By-~se-assessei<. 
Sec. 57. 36 MRSA §6215. as amended by PL 1999, c. 708, §50, 
is further amended to read: 
§6215. Extension of time for filing claims 
In case of sickness, absence or other disability, or if, in 
the judgment of the State Tax Assessor, good cause exists, the 
assessor may extend, for a period not to exceed e k months, the 
time for filing a 
claim. 
A request for an extension may be 
submitted at any time during the e-meRER 2-month extension period. 
Sec. 58. 36 MRSA §6652. sub-§l-B. 'C. as enacted by PL 2003, 
c. 625, §2 and affected by §3 and enacted by c. 687, Pt. A, §11 
and affected by Pt. B, §11, is repealed and the following enacted 
in its place: 
C. 
Gambling 
machines 
or 
devices, 
including 
any 
device, 
machine. paraphernalia or equipment that is used or usable 
in the playing phases of any gambling activity as that term 
is defined in Title 8, section 1001, subsection 15, whether 
that 
activity 
consists 
of 
gambling 
between 
persons 
or 
gambling by a person involving the playing of a machine. 
"Gambling machines or devices" includes. without limitation: 
(1) Associated equipment as defined in Title 8, section 
1001, subsection 2; 
(2) Computer equipment used directly and primarily in 
the operation of a slot machine as defined in Title 8, 
section 1001, subsection 39; 
(3) An electronic video machine as defined in Title 17, 
section 330, subsection I-A; 
(4) 
Equipment used in the playing phases of lottery 
schemes; and 
(5) Repair and replacement parts of a gambling machine 
or device. 
Sec. 59. 36 MRSA §7103, as enacted by PL 1997, c. 411, §2, is 
amended to read: 
§7103. Representation on commission 
The 
assesse~ State Tax Assessor represents the State on the 
commission, except that the assessor may designate an alternate 
representative. 
An 
alternate 
must 
be 
either 
the 
assessor's 
designee or a division director in the Bureau of ~aHaeieR Revenue 
Services. 
Sec. 60. P&SL 1999, c. 39. §1 is amended to read: 
Sec. 1. Maine Residents Property Tax Program; outreach. 
The 
~H~eaH---ef---ReyeRHe---Se~y~eeST---w~ER~R---ERe 
Department 
of 
Administrative 
and 
Financial 
Services, 
Bureau 
of 
Revenue 
Services, shall conduct outreach activities to encourage maximum 
participation in the Maine Residents Property Tax 
Program by 
eligible taxpayers. 
~Re-~~~~~~-~Rese-~~~~~~~~~~-m~st 
Be-~~-££em-~~-ame~~~~--a~~~~~~a~-~~--&ae-~~-ResiaeBts 
P~epe~ty-~aH-P~e~~amT 
Sec. 61. Application. That section of this Act that amends the 
Maine Revised Statutes, Title 36, 
section 5278, 
subsection 5, 
paragraph B applies retroactively to tax years beginning on or 
after January 1, 2002. That section of this Act that repeals and 
replaces Title 36, 
section 6652, 
subsection 1-B, 
paragraph C 
applies retroactively to property tax years beginning on or after 
April 1, 2004. 
SUMMARY 
This bill makes the following changes to the laws governing 
taxation. 
1. 
It corrects the name of the Department of Administrative 
and Financial Services, Bureau of Revenue Services in a statute 
relating to state civil service positions. 
2. 
It clarifies that the fees established for service of 
tax warrants by sheriffs and deputy sheriffs apply to warrants 
for all taxes imposed under the Maine Revised Statutes, Title 36. 
3. 
It provides 
for 
the 
assessment 
and 
collection 
of 
liabilities arlslng from failure of a 
3rd party to surrender 
property 
subject 
to 
levy 
in 
the 
same 
manner 
as 
other 
tax 
liabilities and clarifies that the rate of interest imposed on 
liabilities arlslng from failure of a 
3rd party to surrender 
property subject to levy is the general rate applicable to unpaid 
taxes. 
The change establishes progressive enforcement procedures 
for collecting these debts and incorporates appropriate taxpayer 
protections in the collection process. 
4. 
It relocates the substantive provlslons 
of existing 
Title 36, sections 1964 and 3240, which relate to priority of tax 
debts, 
to the general administrative provisions of Title 36. 
These statutes, 
which 
apply to 
any tax, 
are inappropriately 
located in the sales and use tax law and the motor fuel tax law. 
5. 
It extends the due date of the tax incidence report by 3 
months from October 1st of each even-numbered year to January 1st 
of each odd-numbered year. Extending the deadline will ensure 
that the report is based on the latest economic and revenue 
forecasts developed for use in the Governor's biennial budget. 
• 
6. 
It expands the provision for inclusion of untaxed real 
property of widows 
and children of deceased veterans in the 
assessor's inventory to include untaxed real property of widowers 
of deceased veterans. This makes the requirement consistent with 
changes enacted in 2004 that broadened the veterans' exemption to 
include property of widowers of deceased veterans. 
7. 
It expands the provision for abatement of property taxes 
for widows and children of deceased veterans to include widowers 
of 
deceased 
veterans. 
This 
makes 
the 
abatement 
provision 
consistent with 
changes 
enacted 
in 
2004 
that 
broadened 
the 
veterans' exemption to include property of widowers of deceased 
veterans. 
8. 
It adds a specific requirement that a person who sells 
tangible personal property or taxable services in Maine on behalf 
of the owner must register as a seller and collect and remit 
Maine sales tax on those sales. This requirement is consistent 
with the long-standing interpretation of the statutes by the 
agency. 
9. 
It clarifies that provisions relating 
of 
products 
for 
internal 
human 
consumption 
machines 
are 
applicable 
regardless 
of 
the 
accepted by the vending machines. 
to certain sales 
through 
vending 
form 
of 
payment 
10. 
It clarifies that the sales tax exclusion for sales of 
furniture, audio media and audio equipment for rental is limited 
to those circumstances where the subsequent rental is subject to 
the service provider tax. 
11. 
It clarifies that the storage and use subject to the 
use tax includes storage and use of property purchased at casual 
sales, if the sale of that property would be subject to tax. 
12. 
It repeals a sales tax exemption that is not currently 
being administered because the Office of the Attorney General has 
advised the Bureau of Revenue Services that it violates the 
commerce clause of the United States Constitution. The section 
also clarifies an ambiguous cross-reference. 
13. 
It clarifies that a corporation or limited liability 
company cannot be a nonresident for purposes of the immediate 
removal 
exemptions 
in the 
sales 
and 
use 
tax 
law if it is 
organized in Maine or has its principal place of business in 
Maine. This is consistent with the long-standing interpretation 
of the exemption statutes by the agency. 
14. 
It 
updates 
the 
sales 
and 
use 
snowmobiles and ATVs owned by nonresidents 
tax 
exemption 
for 
for consistency with 
other existing statutes and establishes 
a provision to cover 
registration of property in the State when the owner made actual 
use of the property outside the State but was not required under 
the laws of that state to register it [or that use. 
the 
15. 
time of 
It clarifies a statute requiring payment 
registration on property required to 
this State with 
the 
Secretary of 
of Inland Fisheries and Wildlife. 
for 
use 
in 
Commissioner 
of use tax at 
be registered 
State or 
the 
16. 
It 
deletes 
unnecessary 
and 
ineffective 
provisions 
relating to bankruptcy. 
17. 
It repeals a provision relating to priority of taxes 
that is being relocated to the uniform administrative provisions 
of Title 36. This provision is inappropriately located in the 
sales and use tax law since it applies to any tax. The section 
also repeals unnecessary and ineffective provisions relating to 
bankruptcy. 
18. 
It amends the sales tax refund statute to provide for a 
refund in situations where a retailer has erroneously computed 
and paid the tax but did not collect the tax from the customer. 
The change establishes a specific statutory basis for current 
agency 
practice. 
The 
section also 
eliminates 
gender-specific 
language and makes other grammatical changes. 
19. 
It amends a cross-reference to federal regulations in 
the definition of "mobile telecommunications services" to make it 
consistent with federal law. 
20. 
It defines "nonprofit" for purposes of the service 
provider tax law. 
21. 
It describes more precisely certain acts designated as 
crimes under the service provider tax law. 
22. 
It clarifies that certain sales of fabrication services 
for incorporation into real property of an exempt entity are not 
subject to the service provider tax. 
23. 
It repeals a redundant criminal statute in the motor 
fuel tax laws. 
24. 
It adds special fuel tax, interest and penal ties owed 
by 
retailers of 
low-energy 
fuels 
to 
the list of 
tax 
debts 
designated 
as 
personal 
and 
recoverable 
by civil 
action 
and 
repeals 
unnecessary 
and 
ineffective 
provisions 
relating 
to 
bankruptcy. 
• 
t 
• 
25. 
It repeals a provision relating to priority of taxes 
that is being relocated to the uniform administrative provisions 
of Title 36. This provision is inappropriately located in the 
motor fuel tax laws since it applies to any tax. The section also 
repeals 
unnecessary 
and 
ineffective 
provisions 
relating 
to 
bankruptcy. 
26. 
It repeals a redundant definition of "person" from the 
estate tax 
law. 
A similar definition exists 
in the 
uniform 
administrative provisions that apply to all taxes. 
27. 
It combines the cigarette tax imposed by Title 36, 
section 4365 and the additional cigarette tax imposed by Title 
36, section 4366-0 into a single tax that is equal to the sum of 
the 2 existing taxes . 
28. 
It simplifies the tobacco products tax law by deleting 
references to tax rates that are no longer in effect. 
29. 
It repeals a redundant statute related to giving notice 
under 
the 
real 
estate 
transfer 
tax 
law. 
The 
uniform 
administrative provisions include 
a 
similar provision that is 
applicable to all taxes. 
30. 
It 
repeals 
unnecessary 
and 
ineffective 
provisions 
relating to bankruptcy. 
31. 
It clarifies that individual income tax modifications 
related to increased federal expense limitations are based on the 
expense actually used in the year the asset is placed in service. 
32. 
It clarifies that individual income 
related 
to 
the 
federal 
work 
opportunity 
empowerment zone employment credit cannot be 
once. 
tax modifications 
credi t 
and 
the 
claimed more than 
33. 
It clarifies that corporate income tax modifications 
related to increased federal expense limitations are based on the 
expense actually used in the year the asset is placed in service. 
34. 
It clarifies that 
related 
to 
the 
federal 
empowerment zone employment 
once. 
corporate income 
work 
opportunity 
credi t 
cannot be 
tax modifications 
credi t 
and 
the 
claimed more than 
35. 
It clarifies 
the 
amount 
of 
corporate 
income 
tax 
adjustments relating to federal net operating loss carry-backs. 
36. 
It clarifies 
the 
statute 
of 
limitations 
regarding 
income tax claims for credit or refund to explicitly state that a 
claim attributable to a net operating loss carry-back must relate 
to a period for which net operating loss carry-backs are allowed. 
37. 
It replaces a requirement that the Bureau of Revenue 
Services provide a telefile application under the Maine Residents 
Property Tax 
Program with a 
more general 
requirement for 
an 
electronic 
filing 
option. 
The 
section 
also 
makes 
various 
grammatical changes. 
38. 
It 
consolidates 
overlapping 
but 
inconsistent 
provisions enacted in 2004 that exclude gambling equipment from 
reimbursement under the BETR program. 
39. 
It corrects the name of the Bureau of Revenue Services 
in a statute providing for representation on the Mul tistate Tax 
Commission. 
40. 
It eliminates a requirement that the cost of outreach 
activities 
intended 
to 
encourage 
participation in 
the 
Maine 
Residents Property Tax Program must be paid from the amounts 
appropriated for the program. 
There is no 
longer 
a 
specific 
appropriation for the Maine Residents Property Tax Program. 
41. 
tax law. 
It clarifies the definition of "nonprofit" in the sales 
42. 
It corrects a typographical error in the estate tax law. 
43. 
Current law governing estate tax provides for a tax on 
nonresident estates based on a state credit amount calculated on 
the entire estate, multiplied by a percentage. 
The percentage is 
equal to the ratio between tangible property located in the State 
and the entire value of the estate. 
This bill clarifies the 
language that describes this ratio. 
44. 
Current law governing estate tax provides for an estate 
tax based on federal state death tax credit and exclusion amounts 
in effect before passage of the federal 
Economic 
Growth Tax 
Relief Reconciliation Act of 2001. 
This bill clarifies that a 
Maine estate tax return is required to be filed whenever the 
federal gross estate, increased by the amount of adjusted taxable 
gifts, exceeds the exclusion amount in effect prior to enactment 
of that federal law. 
45. 
It clarifies the pension exclusion in the State's 
individual income tax law. 
46. 
Public Law 2005, chapter 2, Part E, section 3 enacted 
January 21, 2005 permanently extends the deadline for filing an 
application for the Maine Residents Property Tax Program from 
, 
J 
, • 
December 31st and May 31st. 
Thus, the new filing period for the 
program is August 1st to May 31st; previously the filing period 
was August 1st to December 31st. 
To ensure consistency in the 
base 
period 
for 
applications 
filed 
August 
to 
December 
and 
applications 
filed 
January 
to 
May, 
this 
bill 
amends 
the 
definition for "year for which relief is requested." 
47. 
Public Law 2005, chapter 2, Part E, section 3 enacted 
January 21, 2005 permanently extends the deadline for filing an 
application for the Maine Residents Property Tax Program from 
December 31st to May 31st. 
Thus, the new filing period for the 
program is August 1st to May 31st; previously, the filing period 
was August 1st to December 31st. 
Existing law also provides a 
6-month extension for reasonable cause, extending the deadline 
for eligible applicants from May 31st to November 30th. 
This 
extension period overlaps the next program that starts August 
1st. 
To eliminate this overlap, the bill shortens the allowable 
extension period from 6 months to 2 months, through July 31st. 
Under law prior to enactment of Public Law 2005, chapter 2, the 
total 
number 
of months 
available for filing 
an application, 
including the allowable extension period, was 11 months. 
This 
bill provides a total of 12 months for filing an application. 
Public Law 2005, chapter 2 provides a total of 16 months.