An Act Concerning Technical Changes to the Tax Laws
Maine Legislature, Session 123, LD 1739
Committee: Taxation
Sponsors: PERRY
Amends: 29-A MRSA §525, 29-A MRSA §2458, 36 MRSA §113, 36 MRSA §135, 36 MRSA §177, 36 MRSA §191, 36 MRSA §306, 36 MRSA §574-B, 36 MRSA §577, 36 MRSA §579, 36 MRSA §581, 36 MRSA §692, 36 MRSA §694, 36 MRSA §1109, 36 MRSA §1752-A, 36 MRSA §1757, 36 MRSA §1760, 36 MRSA §1811-A, 36 MRSA §1951-A, 36 MRSA §2551, 36 MRSA §2553, 36 MRSA §2554, 36 MRSA §2557, 36 MRSA §2893, 36 MRSA §2906, 36 MRSA §2908, 36 MRSA §2913, 36 MRSA §3203, 36 MRSA §3204-A, 36 MRSA §3208, 36 MRSA §3208-A, 36 MRSA §3210, 36 MRSA §3211, 36 MRSA §3212, 36 MRSA §3214, 36 MRSA §3218, 36 MRSA §4361, 36 MRSA §4362-A, 36 MRSA §4366-A, 36 MRSA §4373-A, 36 MRSA §4384, 36 MRSA §5223, 36 MRSA §5228, 36 MRSA §5276, 36 MRSA §6201, 36 MRSA §6652

Legislative Document 
No. 1739 
H.P.1222 
House of Representatives, March 26, 2007 
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 PlOTT I of Unity. 
Cosponsored by Senator PERRY of Penobscot. 
Prmted \)]1 recycled paper 
17/~ 
/f7.7l!dC~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 29-A MRSA §525, sub-§2, as amended by PL 1999, c. 414, §1, is further 
amended to read: 
2. Exceptions. A person operating a vehicle on a public way, subject to Title 36, 
chapter ~ 
shall obtain a fuel use identification decal for that vehicle, except for: 
A. A vehicle owned and operated by government agencies; 
B. A vehicle legally operating with dealer registration plates; 
C. A recreational vehicle; 
D. An authorized emergency vehicle registered in another jurisdiction and operating 
lOin response to a declared emergency; or 
E. A vehicle legally licensed for fuel use reporting under the International Fuel Tax 
Agreement. 
Sec. 2. 29-A MRSA §525, sub-§10, as amended by PL 2001, c. 463, §1 and 
affected by § 7, is further amended to read: 
10. Suspension. If a person fails to file a fuel tax report or to pay any taxes, interest, 
penalties or audit assessment as required pursuant to Title 36, chapter 4.S+-ef 459 or any 
rule adopted pursuant to this section, the Secretary of State shall suspend the person's fuel 
tax license, all fuel decals issued to the person and that person's privilege to operate as a 
motor carrier. In order to be reinstated, the person must file all delinquent tax returns and 
pay all assessments, interest and penalties. 
In addition, the person must pay a $35 
reinstatement fee pursuant to section 2486, subsection 1. 
Sec. 3. 29-A MRSA §2458, sub-§2, ~T, as enacted by PL 2005, c. 433, §24 and 
affected by §28, is amended to read: 
T. Has failed to comply with the provisions of Title 36, chapter ~ 
459; or 
Sec. 4. 36 MRSA §113, sub-§2, ~A, as enacted by PL 1999, c. 708, §5, is 
amended to read: 
A. The collection of delinquent taxes imposed by this Title; and 
Sec. 5. 36 MRSA §113, sub-§2, ~, as enacted by PL 1999, c. 708, §5, is 
amended to read: 
B. The collection of property taxes in the unorganized territory-;-aOO~ 
Sec. 6. 36 MRSA §113, sub-§2, ~C, as enacted by PL 1999, c. 708, §5, is 
repealed. 
Sec. 7. 36 MRSA §135, sub-§l, as amended by PL 2001, c. 396, §3, is further 
amended to read: 
Page I - 123LR0698(Ol)-1 
1. Taxpayers. Persons subject to tax under this Title shall maintain such records as 
the State Tax Assessor determines necessary for the reasonable administration of this 
Title. Records pertaining to taxes imposed by chapters 371 and 575 and by Part 8 must 
be retained as long as is required by applicable federal law and regulation. Records 
pertaining to the special fuel tax user reports returns filed pursuant to section 3209, 
subsection 2 and the International Fuel Tax Agreement pursuant to section 3209, 
subsection I-B must be retained for 4 years. 
Records pertaining to all other taxes 
imposed by this Title must be retained for a period of at least 6 years. The records must 
be kept in such a manner as to ensure their security and accessibility for inspection by the 
assessor or any designated agent engaged in the administration of this Title. 
Sec. 8. 36 MRSA §177, sub-§3, as amended by PL 1999, c. 414, §8, is further 
amended to read: 
3. Notice to segregate. Whenever the State Tax Assessor finds that the payment of 
the trust funds established under subsection 1 will be jeopardized by delay, neglect or 
misappropriation or whenever any person fails to make payment of taxes or file reports 
returns as required by Part 3, or by chapter 451,459 or 827, the assessor may direct that 
person to segregate the trust funds from and not to commingle them with any other funds 
or assets of that person. All taxes that are collected after receipt of the notice of the 
segregation requirement must be paid on account to the assessor until the taxes are due. 
The assessor shall establish in the segregation notice the manner in which the taxes are to 
be paid. The segregation requirement remains in effect until a notice of cancellation is 
given by the assessor. 
Sec. 9. 36 MRS A §187-B, sub-§l, ~, as amended by PL 1999, c. 521, Pt. A, 
§2, is further amended to read: 
B. 
If the return is not filed within 30 days after the taxpayer receives from the 
assessor a formal demand that the return be filed, the penalty is 100% of the tax due. 
The 30-day period provided by this paragraph is extended for up to 120 days if the 
taxpayer requests an extension in writing prior to the expiration of the 30-day period. 
Sec. 10. 36 MRSA §191, sub-§2, ~EE, as enacted by PL 2005, c. 332, §9, is 
amended to read: 
EE. The disclosure by the State Tax Assessor of the fact that a person has or has not 
been issued a certificate of exemption pursuant to section 1760, 2013 or 2557, a 
provisional resale certificate pursuant to section 1754-B, subsection 2-B or a resale 
certificate pursuant to section 1754-B, subsection 2-C; 
Sec. 11. 36 MRSA §306, sub-§3, as repealed and replaced by PL 1975, c. 545, 
§7, is amended to read: 
3. Municipal assessing unit. "Municipal assessing unit" shall mean any means a 
municipality choosing that has chosen not to be designated by the Bureau of Property 
Taxation State Tax Assessor as a primary assessing area, either single unit or district 
member. 
Sec. 12. 36 MRSA §574-B, first ~, as enacted by PL 1989, c. 555, § 16, IS 
amended to read: 
An owner of a parcel containing forest land may apply at the landowner's election by 
filing with the assessor the schedule provided for in section 579~, except that this 
subchapter shall does not apply to any parcel containing less than 10 acres of forest land. 
For purposes of this subchapter, a parcel is deemed to include a unit of real estate, 
notwithstanding that it is divided by a road, way, railroad or pipeline, or by a municipal 
or county line. The election to apply shall require requires the unanimous written consent 
of all owners of an interest in a parcel, except for the State, which is not subject to 
taxation hereunder. 
Sec. 13. 36 MRSA §577, sub-§I, as amended by PL 1973, c. 308, §6, is repealed. 
Sec. 14. 36 MRSA §577, sub-§2, as amended by PL 1973, c. 308, §6, is further 
amended to read: 
2. Destruction by natural disaster. In the case of forest land areas upon which,--at 
any time after January 1, 1972 the trees are destroyed by fire, disease, insect, infestation 
or other natural disaster, so that the area contains not more than 3 cords per acre of wood 
whieh that is merchantable for forest products, the valuation of that specific land area 
shall must be reduced by 75% for the first 10 property tax years following the loss. 
Sec. 15. 36 MRSA §577, sub-§3, as amended by PL 1973, c. 308, §6, is further 
amended to read: 
3. Procedure to obtain reduced valuation. In order to obtain a reduced valuation, 
the landowner shall make must submit a written request to the assessor on or before 
January 1 st the preceding tax year, presenting facts in affidavit form whieh that meet 
either of the foregoing requirements of subsection 2. The assessor may investigate the 
facts, utilizing the procedures set forth in section 579, and shall then determine whether 
the requirements for reduced valuation of subsection 2 are met. If the requirements are 
met, 500h the forest land areas shall must be assessed on the reduced basis herein valued 
as provided in subsection 2. 
Sec. 16. 36 MRS A §578, sub-§I, as amended by PL 2005, c. 457, Pt. CCC, § 1, is 
further amended to read: 
1. 
Organized areas. 
The municipal assessors or chief assessor of a primary 
assessing area shall adjust the State Tax Assessor's 100% valuation per acre for each 
forest type of their county by whatever ratio, or percentage of current just value, is 
applied to other property within the municipality to obtain the assessed values. Forest 
land in the organized areas, subject to taxation under this subchapter, must be taxed at the 
property tax rate applicable to other property in the municipality. 
The State Tax Assessor shall determine annually the amount of acreage in each 
municipality that is classified and taxed in accordance with this subchapter. Each sueh 
municipality is entitled to annual payments from money appropriated by the Legislature if 
it submits an annual return in accordance with section 383 and if it achieves the 
appropriate minimum assessment ratio described established in section 327. The State 
Tax Assessor shall pay any municipal claim found to be in satisfactory form by August 
31st of the year following the submission of the annual return. 
T~e per 3"re 
reimbursement is 90% of the per acre tax revenue lost as a result of this subchapter. For 
purposes of this section, the tax lost is the tax that would have been assessed, but for this 
subchapter, on the classified forest lands if they were assessed according to the 
undeveloped acreage valuations used in the state valuation then in effect, or according to 
the current local valuation on undeveloped acreage, whichever is less, minus the tax that 
was actually assessed on the same lands in accordance with this subchapter. 
A 
municipality that fails to achieve the minimum assessment ratio established in section 327 
loses 10% of the reimbursement provided by this section for each one percentage point 
the minimum assessment ratio falls below the ratio established in section 327. 
Ne A municipality may not receive a reimbursement payment under this section that 
would exceed an amount determined by calculating the tree growth tax loss less the 
municipal savings in educational costs attributable to reduced state valuation. The State 
Tax Assessor shall adopt rules necessary to implement the provisions of this section. 
Rules adopted pursuant to this subsection are routine technical rules for the purposes of 
Title 5, chapter 375, subchapter 2-A. 
A. The tree grovAh tax loss is the adjusted tax that would have been assessed, but for 
this subchapter, on the classified forest lands if they were assessed according to the 
undeveloped acreage valuations used in the state valuation then in effect minus the 
tax that '.vas actually assessed on the same lands in accordance with this subchapter. 
In detennining the adjusted ta), that would have been assessed, the la" rate to be used 
is computed by adding the additional school support required by the modified state 
valuation attributable to the increased valuation of forest land to the original tax 
committed and dividing this sum by the modified total municipal valuation. The 
adjusted tax rate is then applied to the valmJion of forest land based on the 
undeveloped acreage valuations, adjusted by the certified ratio, to determine the 
adjusted tax. 
B. The municipal savings in educational costs is determined by multiplying the 
school subsidy index by the change in state valuation attributable to the use of the 
valuations detennined in accordance witH this subCHapter on classified forest lands 
rather than their valuation using the undeveloped acreage valuations used in the state 
valuation then in effect. 
Sec. 17. 36 MRSA §579, 2nd ~, as enacted by PL 1981, c. 625, §3, is repealed. 
Sec. 18. 36 MRSA §581, as amended by PL 1993, c. 452, §5, is repealed and the 
following enacted in its place: 
§S81. Withdrawal 
1. Assessor determination; owner request. If the assessor determines that land 
suhiect to this subchapter no longer meets the requirements of this subchapter, the 
.?ssessor must withdraw the land from taxation under this subchapter. An owner of land 
42~ubicct to this subchapter may at any time request withdrawal of that land from taxation 
under this subchapter by certifying in writing to the assessor that the land is no longer to 
be classified under this subchaptero 
2. Withdrawal of portion. In the case of withdrawal of a p0l1ion of a parcel, the 
owner, as a condition of withdrawal, shall file with the assessor a plan showing the area 
withdrawn and the area remaining subject to taxation under this subchapter. In the case 
of withdrawal of a portion of a parcel, the resulting portions must be treated after the 
withdrawal as separate parcels under section 708. 
3. 
Penalty. 
If the land is withdrawn from taxation under this subchapter, the 
assessor shall impose a penaltv upon the owner. The penalty is the greater of: 
A. An amount equal to the taxes that would have been assessed on the first day of 
April for the 5 tax years, or any lesser number of tax years starting with the year in 
which the land was first classified, preceding the withdrawal had that land been 
assessed in each of those years at its just value on the date of withdrawal. That 
amount must be reduced by all taxes paid on that land over the preceding 5 years, or 
any lesser number of tax years starting with the year in which the land was first 
classified, and increased by interest at the prevailing municipal rate from the date or 
dates on which those amounts would have been payable; and 
B. An amount computed by multiplying the amount, if any, by which the just value 
of the land on the date of withdrawal exceeds the 100% valuation of the land pursuant 
to this subchapter on the preceding April 1 st by the following rates: 
(l) If the land was subj ect to valuation under this subchapter for 10 years or less 
prior to the date of withdrawal, the rate is 30%; and 
(2) If the land was subject to valuation under this subchapter for more than 10 
years prior to the date of withdrawal, the rate is that percentage obtained by 
subtracting 1 % from 30% for each full year beyond 10 years that the land was 
subject to valuation under this subchapter prior to the date of withdrawal, except 
that the minimum rate is 20%. 
For purposes of this subsection, just value at the time of withdrawal is the assessed just 
value of comparable property in the municipality adjusted by the municipality's certified 
assessment ratio. 
4. Assessment and collection of penalties. The penalties for withdrawal must be 
paid upon withdrawal to the tax collector as additional property taxes. Penalties may be 
assessed and collected as supplemental assessments in accordance with section 713-B. 
5. 
Eminent domain. 
A penalty may not be assessed under this section for a 
withdrawal occasioned by a transfer to an entity holding the power of eminent domain if 
the transfer results from the exercise or threatened exercise of that power. 
6. 
Relief from requirements. 
Upon withdrawal, the land is relieved of the 
requirements of this subchapter immediately and is returned to taxation under the statutes 
relating to the taxation of real property beginning the following April 1 st. 
P2ge 5 - 123LR0698(01)-1 
7. 
Reclassification as farmland or open space land. 
A penalty may not be 
assessed upon the withdrawal of land from taxation under this subchapter if the owner 
applies for classification of that land as farmland or open space land under subchapter 10 
and that application is accepted. If a penalty is later assessed under section 1112, the 
period of time that the land was taxed as forest land under this subchapter is included for 
purposes of establishing the amount of the penalty. 
8. Report of penalty. A municipality that receives a penalty for the withdrawal of 
land from taxation under this subchapter must report the total amount received in that 
reporting year to the State Tax Assessor on the municipal valuation return form described 
in section 383. 
Sec. 19. 36 MRS A §652, sub-§I, ~A, as amended by PL 2001, c. 596, Pt. B, §23 
and affected by §25 and PL 2003, c. 689, Pt. B, §§6 and 7, is further amended to read: 
A. The real estate and personal property owned and occupied or used solely for their 
own purposes by benevolent and charitable institutions incorporated by this State. 
Such an institution may not be deprived of the right of exemption by reason of the 
source from which its funds are derived or by reason of limitation in the classes of 
persons for whose benefit ~ 
the funds are applied. 
For the purposes of this paragraph, "benevolent and charitable institutions" includ@ 
includes, but are ~ not limited to, nonprofit nursing homes ana licensed by the 
Department of Health and Human Services pursuant to Title 22, chapter 405, 
nonprofit boarding homes and boarding residential care facilities licensed by the 
Department of Health and Human Services pursuant to Title 22, chapter 1664 or its 
succ@ssor 1663, nonprofit community mental health service facilities licensed by the 
Commissioner of Health and Human Services pursuant to Title 34-B, chapter 3 and 
nonprofit child care centers incorporated by this State as benevolent and charitable 
institutions. For the purposes of this paragraph, "nonprofit" means a facility refers to 
an institution that has been determined by the United States Internal Revenue Service 
to be exempt from taxation under Section 501(c)(3) of the Code; 
Sec. 20. 36 MRS A §656, sub-§I, ~E, as amended by PL 1989, c. 890, Pt. A, §9 
and affected by §40, is further amended to read: 
E. Pollution control facilities. 
(1) Water pollution control facilities having a capacity to handle at least 4,000 
gallons of waste per day, certified as such by the Commissioner of 
Environmental Protection, and all parts and accessories thereof. 
As used in this paragraph, unless the context otherwise indicates, the following 
terms have the following meanings. 
(a) "Facility" means any disposal system or any treatment works, appliance, 
equipment, machinery, installation or structures installed, acquired or placed 
in operation primarily for the purpose of reducing, controlling or eliminating 
water pollution caused by industrial, commercial or domestic waste. 
(b) "Disposal system" means any system used primarily for disposing of or 
isolating industrial, commercial or domestic waste and includes thickeners, 
incinerators, pipelines or conduits, pumping stations, force mains and all 
other constructions, devices, appurtenances and facilities used for collecting 
or conducting water borne industrial, commercial or domestic waste to a 
point of disposal, treatment or isolation, except that which is necessary to the 
manufacture of products. 
(c) "Industrial waste" means any liquid, gaseous or solid waste substance 
capable of polluting the waters of the State and resulting from any process, or 
the development of any process, of industry or manufacture. 
(d) "Treatment works" means any plant, pumping station, reservoir or other 
works used primarily for the purpose of treating, stabilizing, isolating or 
holding industrial, commercial or domestic waste. 
( e) "Commercial waste" means any liquid, gaseous or solid waste substance 
capable of polluting the waters of the State and resulting from any activity 
which is primarily commercial in nature. 
(f) "Domestic waste" means any liquid, gaseous or solid waste substance 
capable of polluting the waters of the State and resulting from any activity 
which is primarily domestic in nature. 
(2) Air pollution control facilities, certified as such by the Commissioner of 
Environmental Protection, and all parts and accessories thereof. 
As used in this paragraph, unless the context otherwise indicates, the following 
tenus have the following meanings. 
(a) "Facility" means any appliance, equipment, machinery, installation or 
structures installed, acquired or placed in operation primarily for the purpose 
of reducing, controlling, eliminating or disposing of industrial air 
pollutants.Facilities such as air conditioners, dust collectors, fans and similar 
facilities designed, constructed or installed solely for the benefit of the person 
for whom installed or the personnel of that person sfial.l may not be deemed 
air pollution control facilities. 
(3) The Commissioner of Environmental Protection shall issue a detenuination 
regarding certification by on or before April 1 st for any air or water pollution 
control facility for which it the commissioner has received a complete application 
by on or before December 15th of the preceding year. 
Sec. 21. 36 MRS A §684, sub-§l, as enacted by PL 1997, c. 643, Pt. HHH, §3 
and affected by § 1 0, is amended to read: 
1. 
Generally. The bureau shall furnish to the assessor of each municipality a 
sufficient number of printed fonus to be filed by applicants for an exemption under this 
subchapter and shall determine the content of the fonus. A municipality shall provide to 
its inhabitants reasonable notice of the availability of application fonus. An individual 
claiming an exemption under this subchapter for the first time shall file the application 
fonu with the assessor or the assessor's representative. For an exemption from taxes 
based on the status of property on April!, 1998, the application must be filed by May 15, 
I 
1998. For taxes based on the status of property after April 1, 1998, the The application 
must be filed by on or before April 1 st of the year on which the taxes are based. 
Sec. 22. 36 MRSA §692, sub-§3, ~A, as enacted by PL 2005, c. 623, § 1, is 
amended to read: 
A. 
Except as provided in paragraph B, the percentage of just value of exempt 
business equipment to be included in the annual determination of state valuation 
under sections 208 and 305 for tax year 2008 and subsequent tax years is as follows: 
(1) The applicable percentage specified in section 694, subsection 2, paragraph 
A for exempt business equipment for which the municipality is entitled to receiYe 
receives reimbursement under section 694, subsection 2, paragraph A; 
II 
(2) 
The applicable percentage calculated under section 694, subsection 2, 
paragraph B for exempt business equipment for which the municipality receives 
reimbursement under section 694, subsection 2, paragraph B; and 
(3) Zero for exempt business equipment for which the municipality receives 
reimbursement under section 694, subsection 2, paragraph C. 
Sec. 23. 36 MRS A §692, sub-§3, ~, as enacted by PL 2005, c. 623, § 1, is 
amended to read: 
B. In the case of a municipality that has one or more tax increment financing districts 
authorized pursuant to Title 30-A, chapter 206, subchapter 1 and effective under Title 
30-A, section 5226, subsection 3 prior to April 1, 2008 or authorized pursuant to Title 
30-A, former chapter 207 and effective under Title 30-A, former section 5253, 
subsection 1, paragraph F prior to April 1, 2008, for the 2008 tax year and subsequent 
tax years, the percentage of just value of TIF exempt business equipment located in 
such a tax increment financing district that must be included in the annual 
determination of state valuation pursuant to paragraph A, subparagraph (1) or fJ1 ill 
is decreased, but not below zero, by a percentage amount equal to the municipal tax 
increment percentage for the tax increment financing district in which the TIF exempt 
business equipment is located. 
Sec. 24. 36 MRSA §694, sub-§2, ~, as enacted by PL 2005, c. 623, §1, is 
amended to read: 
B. In the case of municipalities choosing reimbursement under this paragraph in 
which the personal property factor exceeds 5%, the applicable percentage for exempt 
business equipment is 50% plus an amount equal to 112 of the personal property 
factor. 
For purposes of this paragraph, "personal property factor" means the 
percentage derived from a fraction, the numerator of which is the value of business 
personal property in the municipality, whether taxable or exempt, and the 
denominator of which is the value of all taxable property in the municipality plus the 
value of exempt eligible business equipment. For purposes of this paragraph, the 
taxable value of exempt eligible business equipment is the value that would have 
been assessed on that equipment if it were taxable. 
Sec. 25. 36 MRSA §694, sub-§2, ~C, as enacted by PL 2005, c. 623, §1, is 
amended to read: 
C. 
In the case of a municipality that has one or more tax increment financing 
districts authorized pursuant to Title 30-A, chapter 206, subchapter 1 and effective 
under Title 30-A, section 5226, subsection 3 prior to April 1, 2008 or authorized 
pursuant to Title 30-A, former chapter 207 and effective under Title 30-A, former 
section 5253, subsection 1, paragraph F, prior to A.pril 1, 2008, the applicable 
percentage with respect to TIF exempt business equipment is 50% plus a percentage 
amount equal to the percentage amount, if any, by which the municipal tax increment 
percentage for the tax increment financing district in which the TIF exempt business 
equipment is located exceeds 50%. This paragraph applies only when it will result in 
a greater percentage of reimbursement for the TIF exempt business equipment than 
would be provided under paragraph A or B. 
Sec. 26. 36 MRS A §1103, 
as amended by PL 1987, c. 728, §3, IS further 
amended to read: 
§1103. Owner's application 
An owner of farmland or open space land may apply for taxation under this 
subchapter for the calendar year 1999, and for subsequent calendar years, at his election 
by filing with the assessor the schedule provided for in section 1109. The election to 
apply shall require requires the unanimous written consent of all owners of an interest in 
that farmland or open space land. 
Sec. 27. 36 MRSA §1109, sub-§4, as amended by PL 1987, c. 728, §8, is further 
amended to read: 
4. Investigation. The assessor shall notify the landowner of his detennination as to 
the applicability of this subchapter by , on or before June 1 st following receipt of a signed 
schedule meeting the requirements of this section. 
The assessor shall notif), the 
landowner that, whether the application has been accepted or denied. If the application 
is denied, the assessor shall state the reasons for the denial and provide the landowner an 
opportunity to amend the schedule to conform to the requirements of this chapter 
subchapter. 
The assessor or the assessor's duly authorized representative may enter and examine the 
lands subject to taxation under this subchapter for tax purposes and may examine any 
information submitted by the owner or owners. 
Upon notice in 'i'lriting by certified mail, return receipt requested, any The assessor may 
require the owner or owners shall be required, vAthin 60 days of the receipt of such 
net-iea, to respond within 60 days of the receipt of notice in writing by certified mail, 
return receipt requested, to 5U6h written questions or interrogatories as the assessor may 
deem considers necessary to obtain material information about those lands. 
If the 
assessor determines that he cannot reasonably obtain the required material information 
regarding those lands cannot reasonably be obtained through 5U6h written questions or 
interrogatories, the assessor may require any the owner or OVlners, upon notice in writing 
by certified mail, return receipt requested, or by such other another method as that 
rage 9 - 123LR0698(Ol)-1 
provides actual notice, to appear before the assessor at tffiefl ~ reasonable time and place 
as designated by the assessor may designate and answer tffiefl questions or interrogatories 
as the assessor may deem considers necessary to obtain material information about those 
lands. 
If the owner of a parcel of land subject to taxation under this subchapter fails to submit 
the schedules required by this section, fails to respond to written questions or 
interrogatories of the assessor as provided in this subsection or fails to appear before the 
assessor to respond to questions or interrogatories as provided in this subsection, that 
owner or owners are deemed to have waived all rights of appeal. 
Sec. 28. 36 MRSA §1109, sub-§5, as amended by PL 1995, c. 603, §1, is 
repealed and the following enacted in its place: 
5. Owner obligation. It is the obligation of the owner to report to the assessor any 
change of use or change of classification of land subj ect to taxation under this subchapter 
by the end of the tax year in which the change occurs and to report to the assessor on or 
before April 1 st of every 5th year the gross income realized in each of the previous 5 
years from acreage classified as farmland. 
If the owner fails to report to the assessor as required by this subsection, the assessor shall 
assess those taxes that should have been paid, shall assess the penalty provided in section 
1112 and shall assess an additional penalty equal to 25% of the penalty provided in 
section 1112. The assessor may waive the additional penalty for cause. 
Sec. 29. 36 MRS A §1610, as enacted by PL 1985, c. 458, §2, is repealed. 
Sec. 30. 36 MRS A §1752, sub-§14-E, as enacted by PL 2003, c. 588, §5, is 
amended to read: 
14-E. 
School. 
"School" means a public or incorporated nonprofit primary 
elementary, secondary or postsecondary educational institution that has a regular faculty, 
curriculum and organized body of pupils or students in attendance throughout the usual 
school year and that keeps and furnishes to students and others records required and 
accepted for entrance to schools of secondary, collegiate or graduate rank. 
Sec. 31. 36 MRSA §1752-A, as enacted by PL 1999, c. 414, §18, is repealed. 
Sec. 32. 36 MRSA §1757, as amended by PL 1985, c. 691, §9, is further amended 
to read: 
§1757. Revocation of registration 
The State Tax Assessor may revoke the registration certificate of a registrant who 
fails to file, within 15 days after receipt of notice, a bond or deposit required under 
section 1759 and may revoke for cause a registration certificate issued under ehapters 211 
~ 
this Part. The State Tax Assessor assessor may revoke the registration certificate 
of a registrant who fails to file with the State Tax Assessor assessor within 15 days after 
the due date a return as required under ehapters 211 to 225 this Part. A revocation sh:atl 
be ~ reviewable in accordance with section 151. In any ease where a registrant has failed 
If a registrant fails to pay any tax required ef.ffim by this Part when the tax is shown to be 
due on a t=epeFI: return filed by the registrant, or admitted to be due by the registrant, or 
has been determined to be due and that determination has become final, notification of 
the registrant by the State Tax Assessor assessor as provided in this section shall operate 
operates to suspend the registration certificate from the date of the notice of suspension 
until sueh time as the delinquent tax is paid or a bond or deposit required under section 
1759 is filed with the State TaJ( Assessor assessor or it is determined by an appropriate 
court that revocation is not warranted. 
Sec. 33. 36 MRS A § 1760, sub-§6, ~, as amended by PL 1991, c. 846, § 18 and 
PL 2003, c. 689, Pt. B, §6, is further amended to read: 
B. To patients of hospitals lieensed by the State for the eare of human beings and 
ether institutions licensed by the &ate Department of Health and Human Services for 
the hospitalization or nursing care of human beings, or to patients or residents of 
institutions, ageneies, hospitals, boarding homes and boarding houses licensed by the 
Department of Health and Human Services under Title 22, Sub tit 1 e 6 and or Title 22, 
section 1781; 
Sec. 34. 36 MRSA §1760, sub-§9, as amended by PL 1977, c. 686, § 1, is further 
amended to read: 
9. 
Coal, oil and wood. 
Coal, oil, wood and all other fuels, except gas and 
electricity, when bought for cooking and heating in homes, mobile homes, hotels and 
apartment houses, and other buildings designed beth and used for both human habitation 
and sleeping. 
Sec. 35. 36 MRSA §1760, sub-§9-B, as amended by PL 1999, c. 657, §21, is 
further amended to read: 
9-B. Residential electricity. Sale and delivery of the first 750 kilowatt hours of 
residential electricity per month. For the purpose purposes of this subsection, "residential 
electricity" means electricity furnished to homes, mobile homes, boarding homes and 
apartment houses buildings designed and used for both human habitation and sleeping, 
with the exception of hotels and motels. 
Where residential electricity is furnished 
through one meter to more than one residential unit and where the transmission and 
distribution utility applies its tariff on a per unit basis, the furnishing of electricity is 
considered a separate sale for each unit to which the tariff applies. For purposes of this 
subsection, "delivery" means transmission and distribution; 
Sec. 36. 36 MRSA §1760, sub-§9-C, as enacted by PL 1977, c. 686, §2, IS 
amended to read: 
9-C. 
Residential gas. 
Sales of gas when bought for cooking and heating in 
residenees. For the purpose of this subseetion, "residenees" shall mean homes, mobile 
homes, boarding homes and apartment houses buildings designed and used for both 
human habitation and sleeping, with the exception of hotels and motels. 
Sec. 37. 36 MRS A §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 28 days or more at anyone hotel, rooming house, tourist camp 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 28-day 
period must be refunded by the retailer. Soofi If the tax has been reported and paid to the 
State by the retailer.,i! may be taken as a credit by the retailer on the feJ*H'f return filed by 
the retailer covering the month in which the refund was made to S'I%eh the tenant. 
This subsection applies to all rentals of an)' hotel, rooming house or tourist or trailer camp 
for occupancy on or after July 1, 1991 regardless of the date on which payment for the 
rental is made. 
Sec. 38. 36 MRSA §1760, sub-§23-C, as amended by PL 2005, c. 618, §2, is 
further amended to read: 
23-C. Certain vehicles purchased or leased by nonresidents. Sales or leases of 
the following vehicles to a nonresident person that is not a resident of this State, if the 
vehicle is intended to be driven or transported outside the State immediately upon 
delivery: 
A. Motor vehicles, except: 
(1) Automobiles rented for a period of less than one year; and 
(2) All-terrain vehicles and snowmobiles as defined in Title 12, section 13001; 
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 
pnce. 
Notwithstanding section 1752 A, for purposes of this subsection, the term "nonresident" 
rna)' include an individual, an association, a societ)', a olub, a general partnership, a 
limited partnership, a domestic or foreign limited liability company, a trust, an estate, a 
domestic or foreign corporation and any other legal entity. 
Sec. 39. 36 MRSA §1760, sub-§25, as amended by PL 2005, c. 218, §22, is 
further amended to read: 
25. Watercraft sold to nonresidents. Sales of watercraft to a nonresident person 
that is not a resident of this State, when the watercraft is intended to be sailed or 
I 
transported outside the State immediately upon delivery by the seller; sales to a 
nonresideat person that is not a resident of this State, under contracts for the construction 
of a watercraft intended to be 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 person that is not a resident of this State for the repair, alteration, refitting, 
reconstruction, overhaul or restoration of a watercraft intended to be 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, [or a purpose other than 
temporary storage, for more than 30 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, within 12 months of the date of purchase, the 
purchaser is exempt from the use tax. Not\vithstanding section 1752 A, for purposes of 
this subsection, the tenn "nonresideat" may include an individual, an association, a 
society, a club, a general partnership, a limited partnership, a domestic or foreign limited 
liability company, a trust, an estate, a domestic or foreign corporation and any other legal 
entity; 
Sec. 40. 36 MRSA §1760, sub-§25-A, as affected by PL 2003, c. 614, §9 and 
amended by c. 695, Pt. B, §25 and affected by Pt. C, §1, is further amended to read: 
25-A. All-terrain vehicles. All terrain Sales of all-terrain vehicles, as defined in 
Title 12, section 13001, purchased by a person an individual who is not a resident of this 
State~.:. 
Sec. 41. 36 MRSA §1760, sub-§25-B, as amended by PL 2003, c. 414, Pt. B, 
§63 and affected by c. 614, §9, is further amended to read: 
25-B. Snowmobiles. A snowmobile Sales of snowmobiles, as that tenn is defined in 
Title 12, section 13001, subsection 25, purchased by a person an individual who is not a 
resident of this Statet.:. 
Sec. 42. 36 MRS A §1760, sub-§29, as amended by PL 1989, c. 890, Pt. A, § 10 
and affected by §40, is further amended to read: 
29. Water pollution control facilities. Sales of any water pollution control facilit), 
facilities, certified as such by the Commissioner of Environmental Protection, and any 
f*tFt sales of parts or accessories thereof of a certified facility, er--any materials for the 
construction, repair or maintenance of a certified facility and chemicals or supplies that 
are integral to the effectiveness of a certified facility. 
As used in this subsection, unless the context otherwise indicates, the following terms 
have the following meanings. 
A. "Disposal system" means any system used primarily for disposing of or isolating 
industrial or other waste and includes thickeners, incinerators, pipelines or conduits, 
pumping stations, force mains and all other constructions, devices, appurtenances and 
facilities used for collecting or conducting water borne industrial or other waste to a 
point of disposal, treatment or isolation, except that which is necessary to the 
manufacture of products. 
B. 
"Facility" means any disposal system or any treatment works, appliance, 
equipment, machinery, installation or structures installed, acquired or placed in 
operation primarily for the purpose of reducing, controlling or eliminating w ... ler 
pollution caused by industrial or other waste, except septic tanks and the pipelines 
and leach fields connected or appurtenant thereto. 
C. "Industrial waste" means any liquid, gaseous or solid waste substance capable of 
polluting the waters of the State and resulting from any process, or the development 
of any process, of industry or manufacture. 
D. "Treatment works" means any plant, pumping station, reservoir or other works 
lOused primarily for the purpose of treating, stabilizing, isolating or holding industrial 
or other waste. 
Sec. 43. 36 MRS A §1760, sub-§30, as amended by PL 1989, c. 890, Pt. A, §11 
and affected by §40, is further amended to read: 
30. Air pollution control facilities. ~ 
Sales of iffij' air pollution control facility 
facilities, certified as such by the Commissioner of Environmental Protection, and iffij' 
I*ffi sales of parts or accessories thereof of a certified facility, er--aay materials for the 
construction, repair or maintenance thereof of a certified facility and chemicals or 
supplies that are integral to the effectiveness of a certified facility. 
As used in this subsection, unless the context otherwise indicates, the following terms 
have the following meanings. 
A. "Facility" means any appliance, equipment, machinery, installation or structures 
installed, acquired or placed in operation primarily for the purpose of reducing, 
controlling, eliminating or disposing of industrial or other air pollutants. 
Facilities such as air conditioners, dust collectors, fans and similar facilities designed, 
constructed or installed solely for the benefit of the person for whom installed or the 
personnel of such person, and facilities designed or installed for the reduction or 
control of automobile exhaust emissions shall not be deemed air pollution control 
facilities for purposes of this subsection. 
Sec. 44. 36 MRSA §1760, sub-§39, as enacted by PL 1977, c. 686, §3, IS 
amended to read: 
39. Residential water. Sales of water purchased for use in homes, mobile homes, 
boarding homes and apartment houses and other buildings designed and used for both 
human habitation and sleeping, with the exception of hotels and motels. 
Sec. 45. 36 MRSA §1760, sub-§45, as amended by PL 2005, c. 519, Pt. EE, §1 
and affected by §3, 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 is an individual who 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 that is registered outside the State by an owner 
2' 
who at the time of purchase is an individual who was a resident of another state at the 
time of purchase and the watercraft is present in the State not more than 30 days 
during the 12 months following its purchase for a purpose other than temporary 
storage; 
A-2. If the property is a snowmobile or all-terrain vehicle as defined in Title 12, 
section 13001 and the purchaser is an individual who is not a resident of the State; 
A-3. If the propelty is an aircraft not exempted under subsection 88 and the owner at 
the time of purchase was a resident of another state or tax jurisdiction and the aircraft 
lOis present in this State not more than 20 days during the 12 months following its 
purchase, exclusive of days during which the aircraft is in this State for the purpose 
of undergoing "major alterations," "major repairs" or "preventive maintenance" as 
those terms are described in 14 Code of Federal Regulations, Appendix A to Part 43, 
as in effect on January 1, 2005. For the purposes of this paragraph, the location of an 
aircraft on the ground in the State at any time during a day is considered presence in 
the State for that entire day; or 
B. For more than 12 months in all other cases. 
Property, other than automobiles, watercraft, snowmobiles, all-terrain vehicles and 
aircraft, that is required to be registered for use in this State does not qualify for this 
exemption unless it was registered by its present owner outside this State more than 12 
months prior to its registration in this State. If property required to be registered for use 
in this State was not required to be registered for use outside this State, the owner must be 
able to document actual use of the property outside this State for more than 12 months 
prior to its registration in this State. For purposes of this subsection, "use" does not 
include storage but means actual use of the property for a purpose consistent with its 
design. 
Notwithstaadiag sectioa 1752 A, "resideat" rna)' iaclude aa iadividual, aa associatioa, a 
society, a club, a geaeral partaership, a limited partaership, a limited liability compaay, a 
trust, aa estate, a corporatioa aad aay other legal emity. 
Sec. 46. 36 MRSA §1760, sub-§74, as enacted by PL 1989, c. 871, §15, IS 
repealed and the following enacted in its place: 
74. Property used in production. Sales of: 
A. Tangible personal property that becomes an ingredient or component part of 
tangible personal property produced for later sale or lease, other than lease for use in 
this State, or that becomes an ingredient or component part of tangible personal 
property produced pursuant to a contract with the Federal Government or an agency 
of the Federal Government; and 
B. Tangible personal property, other than fuel or electricity, that is consumed or 
destroyed or loses its identity directly and primarily in the production of tangible 
personal property for later sale or lease, other than lease for use in this State, or that is 
consumed or destroyed or loses its identity directly and primarily in the production of 
tangible personal property produced pursuant to a contract with the Federal 
Government or an agency ofthe Federal Government. 
7~ 
_I 
For purposes of this subsection, tangible personal property is "consumed or destroyed" or 
"loses its identity" in production if it has a normal physical life expectancy of less than 
one year as a usable item in the use to which it is applied. 
Sec. 47. 36 MRS A §1760, sub-§90 is enacted to read: 
90. Certain sales of electrical energy. Sale or use of electrical energy, or water 
stored for the purpose of generating electricity, when the sale is to or by a wholly owned 
subsidiary by or to its parent corporation, except for electrical energy or water purchased 
for resale to or by the wholly owned subsidiary. 
Sec. 48. 36 MRS A §1811, 2nd~, as amended by PL 2003, c. 673, Pt. V, §23 and 
affected by §29, is further amended to read: 
The tax imposed upon the sale and distribution of gas, water or electricity by any 
public utility, the rates for which sale and distribution are established by the Public 
Utilities Commission, must be added to the rates so established. No tax may ee imposed 
upon the sale or use of electrical energy, or '.vater stored for the purpose of generating 
electricity, when the sale is to or ey a wholly owned subsidiary by or to its parent 
corporation, eJwept for electrical energy or '.vater purchased for resale to or ey such 
wholly owned suesidiary. 
Sec. 49. 36 MRSA §1811-A, as amended by PL 1981, c. 706, §22, is further 
amended to read: 
§1811-A. Credit for worthless accounts 
The tax paid on sales represented by accounts charged off as worthless may be 
credited against the tax due on a subsequent repert return filed within 3 years of the 
charge-off, but, if any such accounts are thereafter collected by the retailer, a tax shall 
must be paid upon the amounts so collected. 
Sec. 50. 36 MRSA §1951-A, sub-§l, as enacted by PL 1991, c. 9, Pt. E, §24, is 
amended to read: 
1. 
Monthly report and payment. Every retailer shall file with the State Tax 
Assessor, on or before the 15th day of each month, a repert return made under the paffis 
ana penalties of peIjury on sueR .1! form as prescribed by the State Tax Assessor may 
prescribe that discloses assessor. The return must report the total sale price of all sales 
made during the preceding calendar month and such other information as the State Tax 
Assessor assessor requires. The State Tax Assessor assessor may permit the filing of 
returns other than monthly. 
The State Tax Assessor assessor, by rule, may waive 
reporting nontaxable sales. 
Upon application of a retailer, the State Tax Assessor 
assessor shall issue a classified permit establishing the percentage of exempt sales. The 
classified permit may be amended or revoked as to its classification whene'o'er if the &att! 
Tax Assessor assessor determines that the percentage of exempt sales is inaccurate. The 
State Tax Assessor assessor may for good cause extend for not more than 30 days the 
time for making filing returns required under chapters 211 to 225 this Part. Every person 
subject to the use tax shall file similar reports returns, at similar dates, and pay the tax or 
furnish a receipt for the same from a registered retailer. 
Sec. 51. 36 MRS A §2113, as repealed and replaced by PL 2003, c. 452, Pt. U, §5 
and affected by Pt. X, §2, is repealed. 
Sec. 52. 36 MRS A §2526, as amended by PL 1997, c. 24, Pt. C, §5, is repealed. 
Sec. 53. 36 MRSA §2551, sub-§10, as enacted by PL 2003, c. 673, Pt. Y, §25 
and affected by §29, is amended to read: 
10. 
Private nonmedical institution. 
"Private nonmedical institution" means a 
person licensed by the Department of Health and Human Services or the Department of 
Behavioral and De>,'elopmental Seryices to provide private nonmedical institution 
services to 4 or more MaineCare-eligible and other residents in single or multiple 
facilities under a written agreement with the Department of Health and Human Services 
or the Department of Behavioral and Developmental Services. 
"Private nonmedical 
institution" does not include a health insurance organization, hospital, nursing home or 
community health care center. 
Sec. 54. 36 MRSA §2551, sub-§15, as enacted by PL 2003, c. 673, Pt. Y, §25 
and affected by §29, is amended to read: 
15. Sale price. "Sale price" means the total amount of consideration, including cash, 
credit, property and services, for which personal property or services are sold, leased or 
rented, valued in money, whether received in money or otherwise, without any deduction 
for the cost of materials used, labor or service cost, interest, losses and any other expense 
of the seller. "Sale price" includes any services that are a part of a sale. "Sale price" does 
not include: 
A. Discounts allowed and taken on sales; 
B. Allowances in cash or by credit made upon the return of services pursuant to 
warranty; 
C. The price of services rejected by customers when the full sale price is refunded 
either in cash or by credit; er 
D. The amount of any tax imposed by the United States or the State on or with 
respect to the sale of a service, whether imposed upon the seller or the consumer~.;",Q! 
E. The cost of transportation from the service provider's place of business or other 
point from which shipment is made directly to the purchaser, as long as those charges 
are separately stated and the transportation occurs by means of common carrier, 
contract carrier or the United States Postal Service. 
Sec. 55. 36 MRSA §2551, sub-§16, as enacted by PL 2003, c. 673, Pt. Y, §25 
and affected by §29, is amended to read: 
16. School. "School" means a public or incorporated nonprofit primary elementary, 
secondary or postsecondary educational institution that has a regular faculty, curriculum 
and organized body of pupils or students in attendance throughout the usual school year 
and that keeps and furnishes to students and others records required and accepted for 
entrance to schools of secondary, collegiate or graduate rank. 
Sec. 56. 36 MRSA §2553, sub-§2, as enacted by PL 2003, c. 673, Pt. V, §25 and 
affected by §29, is amended to read: 
2. Revocation of registration. The assessor may revoke for cause a registration 
certificate issued under this section. The assessor may revoke the registration certificate 
of a registrant who fails to file a return with the assessor within 15 days after the due date 
as required by section 2554. A revocation is reviewable in accordance with section 151. 
In any case where !f a registrant has failed to pay any tax imposed by this chapter when 
the tax is shown to be due on a Fef**1 return filed by the registrant or i§ admitted to be 
due by the registrant or has been determined to be due and that determination has become 
final, notification of the registrant by the assessor as provided in this section operates to 
suspend the registration certificate from the date of the notice of suspension until such 
time as the delinquent tax is paid or it is determined by an appropriate court that 
revocation is not warranted. 
Sec. 57. 36 MRSA §2554, sub-§l, as enacted by PL 2003, c. 673, Pt. V, §25 and 
affected by §29, is amended to read: 
1. Monthly report required. Every person subject to the tax imposed by this 
chapter shall file with the assessor, on or before the 15th day of each month, a Fef**1 
return made under the pains and penalties of perjury on ~ 
~ form as prescribed by the 
assessor rna)' prescribe that discloses. The return must report the total sale price of all 
sales made during the preceding calendar month and such other information as the 
assessor requires. The assessor may permit the filing of returns other than monthly. The 
assessor may by rule waive the reporting of nontaxable sales. The assessor may for good 
cause extend for not more than 30 days the time for making filing returns required under 
this section. Rules adopted pursuant to this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 58. 36 MRSA §2554, sub-§3, as enacted by PL 2003, c. 673, Pt. V, §25 and 
affected by §29, is amended to read: 
3. Credit for uncollectible accounts. The tax paid on sales for which all or a 
portion of the sale price is charged off by the service provider as uncollectible may be 
credited against the tax due on a subsequent Fef**1 return filed by the service provider 
within 3 years of the charge-off but, if any such accounts are thereafter collected by the 
service provider, a tax must be paid upon the amount so collected. 
Sec. 59. 36 MRSA §2557, sub-§4, as enacted by PL 2003, c. 673, Pt. V, §25 and 
affected by §29, is amended to read: 
4. Other institutions. Sales to incorporated private nonprofit residential child care 
institutions facilities that are licensed by the Department of Health and Human Services 
as residential child care institutions facilities; 
Sec. 60. 36 MRS A §2557, sub-§6,~, as enacted by PL 2003, c. 673, Pt. V, §25 
and affected by §29, is amended to read: 
B. Receiving support from the Department of Behayioral afld De>,'elopmefltal Health 
and Human Services pursuant to Title 5, section 20005 or Title 34-B, section 3604, 
5433 or 6204; 
Sec. 61. 36 MRSA §2557, sub-§30, as amended by PL 2005, c. 218, §35, is 
further amended to read: 
30. Sales for resale. Sales of services to another service provider for resale; aRtl 
Sec. 62. 36 MRSA §2557, sub-§31, as amended by PL 2005, c. 622, § 12, is 
further amended to read: 
31. Construction contracts with exempt organizations. Sales to a construction 
contractor or its subcontractor 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 provided by section 2560~; and 
Sec. 63. 36 MRSA §2557, sub-§32 is enacted to read: 
32. Certain fabrication services. Sales of services for the fabrication of advertising 
or promotional materials printed on paper when those materials are to be subsequently 
transported outside the State for use by the purchaser of the services solely outside the 
State. 
Sec. 64. 36 MRS A §2891, sub-§3, as enacted by PL 2003, c. 513, Pt. H, § 1, is 
amended to read: 
3. Publicly owned specialty hospital. "Publicly owned specialty hospital" means a 
publicly owned hospital that is primarily engaged in providing psychiatric services for the 
diagnosis, treatment and care of persons with mental illness and that is licensed as a 
specialty hospital by the Department of Health and Human Services. 
Sec. 65. 36 MRSA §2893, sub-§3, as enacted by PL 2003, c. 513, Pt. H, § 1, is 
amended to read: 
3. 
Application of revenues. 
All revenues received by the assessor under this 
chapter must be credited to a General Fund suspense account. No later than the last day 
of each month, the State Controller shall transfer all revenues received by the assessor 
during the month under this chapter to the Medical Care - Payments to Providers Other 
Special Revenue Funds account in the Department of Health and Human Services. 
Sec. 66. 36 MRS A §2902, sub-§1-C is enacted to read: 
I-C. Gross gallons. "Gross gallons" means actual measured gallons of internal 
combustion engine fuel received, sold or used, without adjustment for temperature or 
barometric pressure. 
Sec. 67. 36 MRS A §2902, sub-§4-A is enacted to read: 
4-A. Retail dealer. "Retail dealer" means a person that operates in this State a place 
of business from which internal combustion engine fuel is sold at retail and delivered 
directly into the fuel tanks of motor vehicles or watercraft. A distributor or wholesaler is 
a retail dealer only with respect to internal combustion engine fuel delivered into a retail 
storage tank operated by that distributor or wholesaler or into a retail storage tank of a 
consignee or commission agent. 
Sec. 68. 36 MRS A §2903, sub-§5 is enacted to read: 
5. Delivery by distributor. When internal combustion engine fuel is delivered by a 
distributor to a retail outlet it is deemed to have been sold within the meaning of this 
chapter, even if the retail outlet is owned in whole or in part by the distributor. 
Sec. 69. 36 MRSA §2906, sub-§l, as repealed and replaced by PL 1997, c. 738, 
§5, is amended to read: 
1. Monthly reports from distributors, importers and exporters. Every licensed 
distributor, importer and exporter shall file with the assessor on or before the 21 st day of 
each month a ~ 
return stating the number of gross gallons of internal combustion 
engine fuel received, sold and used in the State by that distributor, importer or exporter 
during the preceding calendar month. 
The ~ 
return must be filed on a form 
prescribed and furnished by the assessor and must contain include any other information 
reasonably required by the assessor. 
Sec. 70. 36 MRSA §2906, sub-§2, as repealed and replaced by PL 1997, c. 738, 
§5, is amended to read: 
2. Payment of tax. At the time of filing the ~ 
return required by this section, 
each distributor and importer shall pay to the assessor the tax imposed by section 2903 on 
each gallon reported as sold, distributed or used. 
Sec. 71. 36 MRSA §2906, sub-§4, as repealed and replaced by PL 1997, c. 738, 
§5, is amended to read: 
4. Refunds to retailers. A retail dealer is entitled to a refund for tax paid on account 
of shrinkage or loss by evaporation of meter internal combustion engine fuel in an 
amount no greater than 112 of 1 % of the tax paid on gross purchases of such fuel 
delivered into retail storage tanks from which it is dispensed into the fuel tank of a motor 
vehicle or watercraft. The procedure for such a refund is as follows. 
A. All applications for refunds must be made under penalties of perjury and must be 
made semiannually within 90 days after June 30th and December 31st respectively. 
B. The application must be made on a form prescribed and furnished by the assessor 
and must be accompanied by a statement from the distributor, supplier or wholesaler 
of the gross purchases of meter internal combustion engine fuel made by the retail 
dealer during the relevant 6-month period. 
C. 
The assessor shall calculate the amount of the refund due on all properly 
completed applications and shall certify that amount and the name of the person 
entitled to the refund to the Treasurer of State. The Treasurer of State shall make a 
certified refund from taxes imposed by this chapter. 
Sec. 72. 36 MRS A §2906, sub-§5, as enacted by PL 1997, c. 738, §5, is amended 
to read: 
5. Monthly reports from wholesalers. Each wholesaler shall ~ 
file with the 
assessor on or before the last day of each month on a form prescribed and furnished by 
the assessor a repeH return stating the number of gross gallons sold by that wholesaler to 
each distributor, importer, exporter or any other person that purchased internal 
combustion engine fuel from that wholesaler during the preceding month. The repeH 
return must clearly identify each purchaser and indicate the number of gallons that each 
purchaser received from the wholesaler. The repeH return must also contain include any 
other information reasonably required by the assessor. 
Sec. 73. 36 MRSA §2908, as repealed and replaced by PL 2005, c. 683, Pt. B, 
§ 31, is amended to read: 
§2908. Refund of tax in certain cases; time limit 
A person who purchases and uses internal combustion engine fuel for any 
commercial use other than in the operation of a registered motor vehicle on the highways 
of this State or, except as provided in section 2910, in the operation of an aircraft and 
who has paid the tax imposed by this chapter on that fuel is entitled to reimbursement in 
the amount of the tax paid, less 1 ¢ per gallon, upon presenting to the State Tax Assessor a 
sworn statement accompanied by the original invoices or other evidence as the assessor 
may require. The statement must show the total amount of internal combustion engine 
fuel so purchased and used by that person for a commercial use other than in the 
operation of registered motor vehicles on the highways of this State or in the operation of 
aircraft. 
A refund application on a form prescribed by the State Tax Assessor must be filed to 
claim a refund pursuant to this section. Interest must be paid at the rate determined 
pursuant to section 186, calculated from the date of receipt of the monthly claim, for all 
proper claims not paid within 30 days of receipt. Applications for refunds must be filed 
with the assessor within 12 months from the date of purchase. 
All fuel that qualifies for a refund under this section is subject to the use tax imposed 
by chapter 215. 
Sec. 74. 36 MRS A §2909, 2nd ~, as amended by PL 2005, c. 332, § 17, is further 
amended to read: 
Applications for refunds must be filed with the State Tax Assessor, on a form 
prescribed by the assessor and accompanied by the original invoices showing those 
purchases, within 12 months from the date of purchase. A refund may not be issued 
under this section unless the claimant's commutation fare revenue derived during the 
calendar quarter period for which the refund is claimed is at least 60% of the claimant's 
total passenger fare revenue derived during that calendar quarter period. 
Sec. 75. 36 MRS A §2910, as amended by PL 1983, c. 94, Pt. C, § 15, is further 
amended to read: 
§2910. Refund of tax less 4¢ per gallon to users of aircraft 
Any A person, association of persons, finn or corporation who shall buy that buys 
and use any uses internal combustion engine fuel as defined in section 2902, for the 
purpose of propelling piston engine aircraft and who shall haye that has paid any the tax 
on internal combustion engine fuel leyied or directed to be paid as pro'lided imposed by 
this chapter, either directly by the collection of such tax by the 'lendor from such 
consumer, or indirectly by adding the amount of such tax to the price of such on that fuel 
and paid by such consumer, shall be reimbursed and repaid is entitled to reimbursement 
in the amount of sueh the tax paid by him, less 4¢ per gallon, upon presenting to the State 
Tax Assessor a statement refund application accompanied by the original invoices 
showing sueh those purchases. Applications for refunds must be filed with the State Tax 
Assessor assessor within 12 months from the date of purchase. All fuel that qualifies for 
a refund under this section is subject to the use tax imposed by chapter 215. 
Sec. 76. 36 MRSA §2913, as repealed and replaced by PL 1985, c. 127, §1, is 
amended to read: 
§2913. Failure to file statement; false statement 
Any A person who refuses or neglects to make any statement, report, payment or 
return required by this chapter, or who knowingly makes,...-affis or assists any other person 
in making a false statement in a return or report to the State Tax Assessor, or in 
connection with an application for refund of any tax, or who knowingly collects, attempts 
to collect or causes to be paid to him or to any ether person, either directly or indirectly, 
any refund of that tax without being to which the person is not entitled to the same, or is 
in violation of the affidaYit as prescribed for registered sellers in section 3205, is guilty of 
a Class E crime. 
Sec. 77. 36 MRSA c. 457, as amended, is repealed. 
Sec. 78. 36 MRSA §3203, sub-§3, as amended by PL 1999, c. 733, §5 and 
affected by § 17, is further amended to read: 
3. Delivery by supplier or retailer. When distillates are delivered by a supplier en 
a consignment basis to a consumer or to a retail outlet, 'Nhether or not the retail outlet is 
wholly owned by the supplier, it is considered those distillates are deemed to have been 
sold within the meaning of this chapter, even if the retail outlet is owned in whole or in 
part by the supplier. 
Sec. 79. 36 MRSA §3203, sub-§6, as amended by PL 1999, c. 733, §6 and 
affected by § 17, is further amended to read: 
6. Allowance for certain losses of propane. An allowance of not more than 1 % 
from the amount of propane received by the retailer may be allowed by the assessor to 
cover the loss through shrinkage, evaporation or handling sustained by the retailer. The 
total allowance for these losses must be supported by documentation satisfactory to the 
assessor. The allowance must be calculated on an annual basis. A further deduction may 
not be allowed unless the assessor is satisfied upon definite proof submitted to the 
assessor that a further deduction should be allowed for a loss sustained through fire, 
accident or some unavoidable calamity. 
Sec. 80. 36 MRSA §3204-A, sub-§3, as enacted by PL 1995, c. 271, §7, is 
amended to read: 
3. Political subdivision. Special fuel sold in bulk to this State or any political 
subdivision of this State; 
Sec. 81. 36 MRSA §3208, as amended by PL 19Q9, c. 733, § 1 0 and affected by 
§ 17, is further amended to read: 
§3208. Credit; users 
Every user subj ect to the tax imposed by section 3203 is entitled to a credit on the 
tax~ equivalent to the existing then current rate of taxation per gallon imposed by section 
3203 as adjusted pursuant to section 3321, on all .fuel.s special fuel purchased by that user 
from a supplier or retailer licensed in accordance with section 3204 upon which fuel the 
tax ts imposed by section 3203 has been paid by that user. Evidence of the payment of 
that tax, in sush .!! form as may be required by or ts satisfactory to the State Tax Assessor, 
must be furnished by each user claiming the credit allowed. When the amount of the 
credit to which any user is entitled for any quarter exceeds the amount of the tax for 
which that user is liable for the same quarter, the excess may, under rules of the State Tax 
Assessor, be allowed as a credit on the tax for which that user would be otherwise liable 
for another quarter or quarters, or upon. Upon application within 3 months from the end 
of any quarter, duly verified and presented in accordance with rules adopted by the State 
TaJ( Assessor and supported by such e'>'idence as may be satisfactory to the State Tax 
Assessor, such assessor, the excess may be refunded if it appears that the applicant has 
paid to another state or province under a lawful requirement of sush that jurisdiction a tax 
similar in effect to the tax levied in imposed by section 3203, on the use or consumption 
of the same that fuel outside the State, at the same rate per gallon that sush tax was paid 
in this State on that number of gallons used in and a taJ( paid on in such other jurisdiction, 
but in no case to exceed the then current rate per gallon of the then current Maine state 
fuel tax imposed by section 3203 as adjusted pursuant to section 3321. Upon receipt of 
the application, the State Tax l\ssessor assessor, if satisfied after investigation that a 
refund is justified, shall so certify to the State Controller antl-it. The refund must be paid 
out of the Highway Fund. This credit lapses at the end of the last quarter of the year 
following that in which the credit arose. 
for those accounts in good standing, a monthly refund application, on a fenn 
presoribed by the State Tax Assessor, may be filed at the close of any month to claim 
oredits desoribed in this seotion. That applioation must be processed and approved for 
payment promptly. Interest is paid at the 5affi@ rate as is computed under established 
pursuant to section 186, calculated from the date of receipt of the monthly claim for all 
~ 
valid refund claims that are not paid within 30 days of receipt of the claim. +his 
paragraph may not be construed to relieve the applicant from filing quarterly 
substantiating information as prescribed by this section. 
Sec. 82. 36 MRSA §3208-A, as amended by PL 2005, c. 664, Pt. M, § 1, is further 
amended to read: 
§3208-A. Refund to political subdivisions 
Any political subdivision of the State that buys and uses special fuel as defined in 
section 3202, subsection 6, and that has paid a tax le¥iea as provided by this chapter 
either directly by the collection of the tax by the vendor from the consumer, or indirectly 
by adding the amount of the tax to the price of the fuel and paid by the consumer, must be 
reimbursed on that fuel is eligible for reimbursement in the amount of the tax paid upen 
presenting to the State Tax Assessor a statement accompanied by the original invoices 
showing purchases. 
By contractual agreement, any agency of this State or political 
subdivision of this State may assign to another person its right to receive funds under this 
section. A refund application on a form prescribed by the State Tax Assessor must be 
filed to claim a refund pursuant to this section. Applications for refunds must be filed 
with the State Tax Assessor within 12 months from the date of purchase. 
Nohvithstanding this section, a county or a municipality may file a claim for refund 
of special fuel tax paid after January 1, 1994, but before April 1, 1996, for which no 
refund was previously claimed. 
Sec. 83. 
MRS A §3209, as amended by PL 2001, c. 396, §30, IS further 
amended to read: 
§3209. Reports; International Fuel Tax Agreement; payment of tax; allowance for 
losses 
1. Suppliers. Every licensed supplier shall file on or before the last day of each 
month a repert return with the State Tax Assessor stating the gross gallons of distillates 
received, sold and used in this State by that supplier during the preceding calendar month, 
on a form prescribed and furnished by the assessor. The repert return must contain 
include any further information reasonably required by the assessor. At the time of filing 
the repert return required by this subsection, each supplier must pay to the assessor a tax 
as prescribed in section 3203 upon each gallon reported as a taxable sale or as taxable 
gallons used. 
1-A. Retailers. Every licensed retailer shall file on or before the last day of each 
month a repert return with the assessor stating the gross gallons of low-energy fuel 
received, sold and used in this State by that retailer during the preceding calendar month 
on a form prescribed and furnished by the assessor. The repert return must contain 
include any further information reasonably required by the assessor. At the time of filing 
the repert return required by this subsection, each retailer shall pay to the assessor a tax as 
prescribed in section 3203 upon each gallon reported as a taxable sale or as taxable 
gallons used. 
I-B. International Fuel Tax Agreement. The State Tax Assessor shall take all 
steps necessary to maintain the State's membership in the 1FT A, in order to: 
A. Facilitate the administration of this chapter; 
B. Promote the fullest and most efficient possible use of the highway system; and 
C. Make uniform the administration, collection and enforcement of special fuel use 
taxation laws with respect to motor vehicles operated in multiple jurisdictions, by 
ensuring this State's full participation in the single-base jurisdiction system embodied 
in the 1FT A governing documents, agreed to by other 1FT A member jurisdictions and 
approved by the United States Congress in the Intermodal Surface Transportation 
Efficiency Act of 1991. 
The assessor is authorized to ratify amendments to the 1FT A governing documents on 
behalf of this State, except that the assessor may not ratify any provision that infringes on 
the substantive taxation authority of the Legislature, including the power to impose taxes, 
set tax rates and determine exemptions. 
Subject to the provisions of this Title, the 
assessor may delegate to the Secretary of State the responsibility for the processing of 
special fuel tax returns, special fuel tax collection and compliance with 1FT A 
administrative requirements. The assessor shall consult with the Secretary of State and 
the Commissioner of Public Safety with respect to rules adopted by the Secretary of State 
pertaining to 1FT A. 
2. 
Users generally. 
Except as provided by subsection 4, for the purpose of 
detennining the amount of tax imposed, each user, not later than the last day of April, 
July, October and January of each year, shall file with the assessor a repert return that 
must include the total gallonage of fuels used within this State during the quarter ending 
the last day of the preceding month. The repert return must contain include any further 
information reasonably required by the assessor. At the time of filing the repert return 
required by this subsection, each user shall pay to the assessor the tax imposed by section 
3203 upon each gallon reported as a taxable use or as taxable gallons used, which has not 
been subjected to the special fuel tax. 
3. Exempt users. Any user of special fuel operating exclusively within this State 
and using only special fuel purchased within this State upon which the State has received 
the special fuel tax, may be exempted, at the discretion of the assessor, from filing reports 
returns under this chapter. Any user of special fuel requesting exemption from filing 
reports returns shall fi.l.e submit an affidavit as prescribed by the assessor. 
4. Annual returns in certain circumstances. Notwithstanding any other provisions 
of this section, a user may file an annual return with payment on or before January 31 st of 
each year covering the prior year when the annual tax liability is expected to be $100 or 
less or when allowed by the 1FT A governing documents. 
5. Monthly reports from wholesalers. Each wholesaler shall submit file on or 
before the last day of each month on a form prescribed and furnished by the assessor a 
repert return stating the number of gross gallons sold by that wholesaler to each supplier, 
importer, exporter or any other person that purchased special fuel from that wholesaler 
during the preceding month. The repert return must clearly identify each purchaser and 
indicate the number of gallons that each purchaser received from the wholesaler. The 
repeFt return must also contain include any other information reasonably required by the 
assessor. 
Sec. 84. 36 MRSA §3210, as amended by PL 1999, c. 733, §13 and affected by 
§ 17, is further amended to read: 
§3210. Application of tax in special cases 
A person wOO that receives any special fuel in such feRn and under sueh 
circumstances as pr@clud@s that preclude the collection of this tax by the supplier or 
retailer by reason of the lavls of the United States and wOO that sells or uses any that 
special fuel in a manner and under circumstanc@s as may subj ect the sale or use to the 
taxing power of this State is considered a supplier or retailer and shall make the same 
reports and shall pay file a quarterly return on a form prescribed by the State Tax 
Assessor and is subject to the same taxes and is subj@ct to all other provisions of this 
chapter relating to suppliers and retailers. A person may not be considered a supplier or 
retailer with respect to special fuel brought into the State in the ordinary standardized 
standard equipment fuel tank attached to and forming a part of a motor vehicle and used 
in the operation of a that vehicle within the State. 
Sec. 85. 36 MRSA §3211, as amended by PL 1999, c. 733, § 14 and affected by 
§ 17, is further amended to read: 
§3211. Cancellation of licenses, registrations 
If any person licensed or registered under this chapter files a false report of the data 
er information required by this chapter, or fails, refuses or neglects to file the report ~ 
return required by this chapter or to pay the full amount of the tax as required by this 
chapter or is in violation of the registration certificate as prescribed in section 3205, the 
State Tax Assessor may cancel the liCense or registration and notify that person in writing 
of the cancellation by registered mail to the last known address of that person appearing 
on the file of the State TaJ( Assessor. 
Upon receipt of a written request from any person licensed or registered under this 
chapter to cancel the license ef or registration issued to that person, the State Tax 
Assessor assessor may cancel that license or registration effective 30 days from the date 
of the written request, but no such license or registration may be canceled upon the 
request of any person until and unless the person, prior to the date of that cancellation, 
has paid to this State all excise taxes payable under the laws of this State, together \llith 
any and all penalties, interest and fines accruing under any of the proyisions of this 
chapter, and until and unless the person has surrendered to the State Tax Assessor in 
which event the license or registration certificate issued to that person must be 
surrendered to the assessor. If, upon investigation, the State Tax Assessor assessor finds 
that any person to whom a license or registration has been issued under this chapter is no 
longer engaged in the sale or use of special fuel and has not been so engaged for a period 
of 6 months, the State Tax Assessor assessor may cancel that license or registration by 
giving that person 30 days' notice of the cancellation mailed to the last known address of 
that person, in which event the license or registration certificate issued to that person 
must be surrendered to the State Tax Assessor assessor. 
Sec. 86. 36 MRSA §3212, first ~, as amended by PL 1999, c. 733, §15 and 
affected by § 17, is further amended to read: 
\Vhenever When a supplier, retailer or user ceases to engage in business as a supplier, 
retailer or user of special fuel within this State, that supplier, retailer or user shall notify 
the State Tax Assessor in writing within 15 days after discontinuance. 
All taxes, 
penalties and interest under this chapter, not yet due and payable under this chapter, 
together with any and all interest accruing or penalties imposed under this chapter, 
notvlithstanding any provisions thereof, become due and payable concurrently with that 
discontinuance. The supplier, retailer or user shall make file a ref**l: return and pay all 
5U€h the taxes, interest and penalties and surrender to the State Tax Assessor assessor the 
license or registration certificate issued to that supplier, retailer or user by the State Tax 
Assessor assessor. 
Sec. 87. 36 MRSA §3214, as amended by PL 1999, c. 733, §16 and affected by 
§ 17, is further amended to read: 
§3214. Credit for tax paid on worthless accounts 
The tax paid on sales made on credit and reported by a supplier or retailer pursuant to 
section 3209 found to be worthless and actually charged off may be credited upon the tax 
due on a subsequent ref**l: return, but if any such accounts are thereafter collected by the 
supplier or retailer, a tax must be paid upon the amounts so collected. The credit must be 
reported on the return for the month in which the charge-off occurred. 
Sec. 88. 36 MRS A §3215, 2nd~, as amended by PL 2005, c. 332, §18, is further 
amended to read: 
Applications for refunds must be filed with the State Tax Assessor, on a form 
prescribed by the assessor and accompanied by the original invoices showing those 
purchases, within 12 months from the date of purchase. A refund may not be issued 
under this section unless the claimant's commutation fare revenue derived during the 
calendar quarter period for which the refund is claimed is at least 60% of the claimant's 
total passenger fare revenue derived during that calendar quarter period. 
Sec. 89. 36 MRSA §3218, first~, as amended by PL 2005, c. 332, § 19, is further 
amended to read: 
A person who purchases and uses special fuel for any use other than operation of a 
registered motor vehicle on the highways of this State, and who has paid the tax imposed 
by this chapter on that fuel, is entitled to reimbursement in the amount of the tax paid, 
less 1 ¢ per gallon, upon presenting to the State Tax Assessor a sworn statement 
accompanied by the original invoices or other evidence as the assessor may require. The 
statement must show the total amount of special fuel so purchased and used by that 
person other than in the operation of registered motor vehicles on the highways of this 
State or in the operation of aircraft. 
Sec. 90. 36 MRSA §3218, 2nd~, as amended by PL 2005, c. 332, §19, is further 
amended to read: 
A refund application on a form prescribed by the assessor must be filed to claim a 
refund pursuant to this section. Interest must be paid at the rate determined pursuant to 
section 186, calculated from the date of receipt of the monthly claim, for all J*el38f valid 
claims not paid within 30 days of receipt. Applications for refunds must be filed with the 
assessor within 12 months from the date of purchase. 
Sec. 91. 36 MRSA §4361, sub-§l, as amended by PL 1997, c. 458, § 1, IS 
repealed. 
Sec. 92. 36 MRSA §4362-A, sub-§2, as amended by PL 2001, c. 526, §3, is 
further amended to read: 
2. Applications; forms. An application for a distributor's license must be made on a 
form prescribed and issued by the assessor. Licenses are issued in the form prescribed by 
the assessor and must contain the name and address of the lieense holder licensed 
distributor, the address of the place of business and such other information as the assessor 
may require for the proper administration of this chapter. 
Sec. 93. 36 MRSA §4362-A, sub-§5, as enacted by PL 1997, c. 458, §3, is 
amended to read: 
5. Revocation or suspension. The assessor may revoke or suspend the license of a 
lieense holder distributor for failure to comply with any provision of this chapter or if the 
lieense holder distributor no longer imports or sells cigarettes. Any person aggrieved by 
a revocation or suspension may apply to the assessor for a hearing request reconsideration 
as provided in section 151. 
Sec. 94. 36 MRSA §4366-A, sub-§l, ~A, as enacted by PL 2003, c. 452, Pt. U, 
§ 10 and affected by Pt. X, §2, is amended to read: 
A. Sell, offer for sale or display for sale any cigarettes within this State that do not 
bear stamps evidencing the payment of the tax imposed by this chapter~~ 
Sec. 95. 36 MRSA §4366-A, sub-§l, ~, as enacted by PL 2003, c. 452, Pt. U, 
§ 1 0 and affected by Pt. X, §2, is repealed. 
Sec. 96. 36 MRSA §4366-A, sub-§2, as amended by PL 2005, c. 622, §25 and 
affected by §34, is further amended to read: 
2. Provided to sellers. The State Tax Assessor shall provide stamps suitable to be 
affixed to packages of cigarettes as evidence of the payment of the tax imposed by this 
chapter. The assessor may permit a licensed distributor to pay for the stamps within 30 
days after the date of purchase, if a bond satisfactory to the assessor in an amount not less 
than 50% of the sale price of the stamps has been filed with the assessor conditioned upon 
payment for the stamps. Such a distributor may continue to purchase stamps on a 30-day 
deferral basis only if it remains current with its cigarette tax obligations. The assessor 
may not sell additional stamps to a distributor that has failed to pay in full within 30 days. 
for stamps previously purchased until such time as the overdue payment is received. The 
assessor shall sell cigarette stamps to licensed distributors at the following discounts from 
their face value: 
A. For stamps at the face value of37 mills sold tlH"ough September 30, 2001, 2.5%; 
B. For stamps at the face value of 50 mills sold prior to July 1, 2002, 2.16%; 
C. For stamps at the face value of 50 mills sold on or after July 1,2002,2.03%; and 
D. For stamps at the face value of 100 mills, the discount rate is 1.15%. 
Sec. 97. 36 MRSA §4366-A, sub-§4, as repealed and replaced by PL 2003, c. 
452, Pt. U, § 11 and affected by Pt. X, §2, is amended to read: 
4. Resale and reuse of stamps prohibited. A distributor may not: 
A. Sell, transfer, reaffix or use more than once reuse cigarette stamps issued by the 
assessor pursuant to this chapter~.!. 
B. Violate paragraph A 'lIsen the distributor has 2 prior convictions for violation of 
this chapter. 
Sec. 98. 36 MRSA §4366-A, sub-§4-A, as enacted by PL 2003, c. 452, Pt. U, 
§12 and affected by Pt. X, §2, is amended to read: 
4-A. Redemption of stamps. The assessor shall redeem any unused, uncancelled 
stamps presented within one year of the date of purchase by a licensed distributor at a 
price equal to the amount paid for them. Credit for uncancelled stamps is allowed only 
on full, unopened rolls unless the distributor ceases business as a distributor and returns 
the license issued Imder section 4362-A. The assessor may also redeem, at face value, 
cigarette tax stamps affixed to packages of cigarettes that have become unsalable if 
application is made within 90 days of the return of the unsalable cigarettes to the 
manufacturer. The Treasurer of State shaH provide out of money collected pursuant to 
this chapter, the funds necessary for the redemption. 
Sec. 99. 36 MRS A §4366-B, as amended by PL 2003, c. 452, Pt. U, § 14 and 
affected by Pt. X, §2, is further amended to read: 
§4366-B. Importation of unstamped cigarettes 
1. Generally. Except as provided in subsection 2, only a licensed distributor er-a 
dealer may import unstamped cigarettes into this State. 
2. Exception for personal use. An individual who is not a licensed distributor er-a 
dealer may transport cigarettes into this State and may transport cigarettes from place to 
place within this State for the individual's personal use in a quantity not greater than 2 
cartons. 
3. Evidence. The possession of more than 2 cartons of unstamped cigarettes by a 
person who is not a licensed distributor or a dealer is prima facie evidence of a violation 
of this section. 
4. Penalties. The following penalties apply to violations of this section. 
A. A person who violates this section commits a Class E crime. 
B. 
A person who violates this section when the person has one or more prior 
convictions for violation of this section commits a Class D crime. Title 17-A, section 
9-A governs the use of prior convictions when determining a sentence. 
Violation of this section is a strict liability crime as defined in Title 17-A, section 34, 
subsection 4-A. 
Sec. 100. 36 MRS A §4366-C, as amended by PL 2003, c. 452, Pt. U, §15 and 
affected by Pt. X, §2, is further amended to read: 
§4366-C. Sales of cigarettes in contravention of law 
1. Cigarettes; stamps not affixed. A dealer or distributor may not offer for sale, 
sell or affix a stamp to a package of cigarettes if the package: 
A. Does not comply with the Federal Cigarette Labeling and Advertising Act, 15 
United States Code, Section 1331, et seq., for the placement of labels, warnings or 
any other information for a package of cigarettes to be sold within the United States; 
B. Is labeled "For Export Only," "U.S. Tax Exempt," "For Use Outside U.S." or with 
other wording indicating that the manufacturer did not intend that the product be sold 
in the United States; 
C. Has been altered by adding or deleting wording, labels or warnings described in 
paragraphs A and B; 
D. Has been imported into the United States in violation of 26 United States Code, 
Section 5754; or 
E. In any way violates federal trademark or copyright laws. 
2. Deceptive practice. Selling a package of cigarettes described in subsection 1, 
with or without a stamp, is an unfair or deceptive act or practice under the Maine Unfair 
Trade Practices Act. 
3. Penalties. The following penalties apply to violations of this section. 
A. A dealer or distributor who violates this section commits a Class E crime. 
B. A dealer or distributor who violates this section when the dealer or distributor has 
one or more prior convictions for violation of this section commits a Class D crime. 
Title 17-A, section 9-A governs the use of prior convictions when determining a 
sentence. 
Violation of this section is a strict liability crime as defined in Title 17 -A, section 34, 
subsection 4-A. 
Sec. 101. 36 MRS A §4372-A, sub-§2, as amended by PL 1999, c. 616, §5, is 
further amended to read: 
2. Exceptions. The following cigarettes are not subject to seizure: 
A. Unstamped cigarettes in the possession of a licensed distributor; 
B. Unstamped cigarettes in the course of transit from without outside the State aM 
that are consigned to a licensed distributor; and 
C. Unstamped cigarettes in a quantity of 2 cartons or less in the possession of an 
individual who is not a licensed distributor. 
Notwithstanding paragraphs A, Band C, cigarettes described in section 4366-C, 
subsection 1 are subject to seizure under the process described in subsection 3, unless the 
dealer or distributor can prove the cigarettes are to be exported out of the country. 
Sec. 102. 36 MRSA §4373-A, as amended by PL 2001, c. 396, §32, is further 
amended to read: 
§4373-A. 
Records required; inspection and examination; assessment of tax 
deficiency 
1. Generally. Distributors and dealers shall keep complete and accurate records of 
all cigarettes that they manufacture, produce, purchase, transfer or sell. The records must 
be of a kind and in the form prescribed by the State Tax Assessor and must be safely 
preserved for 6 years in a manner that ensures permanency and accessibility by 
authorized agents of the assessor. 
Records maintained by dealers must include an 
inventof)' of stamped cigarettes, by pack size. Records maintained by distributors must 
include the following data on either a calendar or fiscal year basis: 
A. An inventory of unaffixed Maine cigarette stamps by denomination; 
B. An inventory of stamped cigarettes, by pack size; 
C. An inventory of unstamped cigarettes, by pack size; and 
D. Copies of all documents supporting redemption for tax on unused, uncancelled 
stamps and for unsalable cigarettes. 
If the rate of tax imposed by section 4365 is changed, a distributor shall take a new 
inventory. 
2. Inspection and examination; penalty. The assessor or any authorized agent may 
enter into or upon any premises where there is reason to believe that cigarettes are 
possessed, stored or sold, and may examine the books, papers, records and cigarette stock 
of any distributor or dealer to determine compliance with the provisions of this chapter. 
Failure or refusal to permit an examination pursuant to this subsection is a civil violation 
for which a fine in the amount of $250 must be imposed, no part of which may be 
suspended. 
3. Assessment of tax deficiency; presumptions. If the assessor determines that a 
distributor has not purchased sufficient stamps to cover sales of cigarettes or that a dealer 
has made sales of unstamped cigarettes, the assessor shall assess the tax deficiency 
pursuant to section 141. When a distributor can not cannot produce evidence of sufficient 
stamp purchases to cover receipts and sales or other disposition of cigarettes, it is 
presumed that the cigarettes were sold without having the proper stamps affixed to them. 
Sec. 103. 36 MRSA §4384, as enacted by PL 2003, c. 705, §7, is amended to 
read: 
§4384. Reporting and payment of tax 
A person who is not a licensed distributor or dealer who imports, receives or 
otherwise acquires unstamped cigarettes for use or consumption in the State in a quantity 
greater than 2 cartons in anyone month from a person other than a licensed distributor er 
dealer shall file, on or before the last day of the month following each month in which 
unstamped cigarettes were acquired, a return on a form prescribed by the State Tax 
Assessor together with payment of the tax imposed by this chapter at the rate provided in 
section 4365. The return must report the number of unstamped cigarettes imported, 
received or otherwise acquired during the previous calendar month and additional 
information the assessor may require. 
Sec. 104. 36 MRS A §4404, first ~, as amended by PL 2005, c. 627, §1O, is 
further amended to read: 
Every distributor subject to the licensing requirement of section 4402 shall file, on or 
before the last day of each month ~, 
a return on a form prescribed and furnished by 
the State Tax Assessor, a report together with payment of the tax due under this chapter 
statffig. The return must state the quantity and the wholesale sales price of all tobacco 
products held, purchased, manufactured, brought in or caused to be brought in from 
outside the State or shipped or transported to retailers within the State during the 
preceding calendar month. Every soofl distributor shall keep a complete and accurate 
record at its principal place of business to substantiate all receipts and sales of tobacco 
products. 
Sec. 105. 36 MRS A §4404, 2nd ~, as amended by PL 2001, c. 382, §3, is further 
amended to read: 
Such monthly reports The return must contain such include further information as the 
State Tal( Assessor assessor may prescribe and must show a credit for any tobacco 
products exempted as provided in section 4403. 
Records must be maintained to 
substantiate the exemption. Tobacco Tax previously paid on tobacco products pre't'iously 
taKetl that are returned to a manufacturer because the product has become unfit for use, 
sale or consumption may be taken as a credit on a subsequent return upon receipt of the 
credit notice from the original supplier. 
Sec. 106. 36 MRS A §4404-A, sub-§3, as enacted by PL 2005, c. 627, §11, is 
amended to read: 
3. Exception for personal use. A person who is not a licensed distributor may: 
A. Transport Import or transport tobacco products other than cigars into this State 
and transport those tobacco products from place to place within this State for personal 
use in a quantity not greater than one pound; or 
B. Import or transport cigars into this State and transport those cigars from place to 
place within this State for personal use in a quantity of no more than 125 cigars. 
Untaxed tobacco products imported or transported into this State in any quantity are 
subject to the tax imposed by section 4403. 
Sec. 107. 36 MRSA §5223, as enacted by P&SL 1969, c. 154, Pt. F, §1, is 
repealed. 
Sec. 108. 36 MRS A §5228, sub-§l,~, as enacted by PL 1985, c. 691, §§35 and 
48, is amended to read: 
B. "Estimated tax" means the total amount whiefl of tax that a person estimates a&-the 
total amount of income ttH{ which will be due for a taxable year under this Part, 
exclusive of a withholder's liability for taxes withheld for a taxable year, less any 
allowable credits for that taxable year. 
Sec. 109. 36 MRSA §5228, sub-§2, as amended by PL 1997, c. 668, §35 and 
affected by §43, is further amended to read: 
2. Requirement to pay estimated tax. Every person subject to taxation under this 
Part shall make payment of estimated tax as required by this Part in such form as the 
State Tax Assessor may require. If the person's income tax liability pursuant to this Part, 
exclusive of a withholder's liability for taxes withheld .. reduced by allowable credits for 
the taxable year, is less than $1,000 for the taxable year .. or, if the person had less than 
$1,000 tax liability under this Part for the prior tax preceding taxable year, the 
requirement to make the estimated tax payments is waived. 
Sec. 110. 36 MRS A §5228, sub-§3, ~A, as enacted by PL 1985, c. 691, §§35 
and 48, is amended to read: 
A. An amount equal to the preceding year's state income person's tax liability under 
this Part for the preceding taxable year, if that preceding year was a taxable year of 
months; or 
Sec. 111. 36 MRS A §5228, suh-§3, ~, as amended by PL 1991, c. 528, Pt. 
DDD, §1 and affected by §2 and Pt. RRR and amended by c. 591, Pt. DDD, §1 and 
affected by §2, is further amended to read: 
B. An amount equal to 90% of the income person's tax liability under this Part for 
the current taxable year determined without taking into account the current year's 
investment tax credit set forth in section 5219-E, except that for farmers and persons 
who fish commercially, this amount is 66 2/3% of the person's tax liability under this 
Part for the current taxable year. 
Sec. 112. 36 MRS A §5255, as amended by PL 2005, c. 618, § 16, is further 
amended to read: 
§5255. Failure to withhold 
A person who fails to deduct and withhold tax as required by this chapter is relieved 
from liability for that tax to the extent that the tax against which that tax may be credited 
has been paid, but the person is not relieved from liability for any additions to tax, 
penalties or interest otherwise applicable with respect to the failure to ~ 
file returns 
and withhold and pay tax as required by this chapter. 
Sec. 113. 36 MRSA §5276, as amended by PL 2005, c. 332, §§25 and 26, is 
further amended to read: 
§5276. Authority to make credits or refunds 
1. General rule. The State Tax Assessor, within the applicable period of limitations, 
may credit an overpayment of income tax, including an overpayment reported on a joint 
return, and interest on the overpayment against any liability arising from a 
redetermination pursuant to section 6211 or any liability in respect of any tax imposed 
under this Title owed by the taxpayer, or by the taxpayer's spouse in the case of a joint 
return. The balance, after any setoff pursuant to section 5276-A, must be refunded by the 
Treasurer of State. 
2. Excessive withholding. If the amount allowable as a credit for tax withheld from 
the taxpayer exceeds his the tax to which the credit relates, the excess shall must be 
considered an overpayment. 
3. Overpayment by withholder. If there has been an overpayment of tax required 
to be deducted and withheld under section 5250 chapter 827, refund shall must be made 
to the employer withholder only to the extent that the amount of the overpayment was not 
deducted and withheld by the employer withholder. 
4. Credits against estimated tax. The assessor may prescribe regulations providing 
provide for the crediting against the estimated income tax for any taxable year of the 
amount determined to be an overpayment of the income tax for a preceding taxable year. 
5. Assessment and collection after limitation period. If any amount of income tax 
is assessed er and collected after the expiration of the applicable period of limitations 
properly applicable thereto, such, that amount shall must be considered an overpayment. 
b. O'/erpayment by pass through entity. If there has been an overpayment of tax 
required to be withheld under section 5250 B, refund must be made to the pass through 
entity only to the extent that the amount of the overpayment 'Has not deducted and 
withheld by the pass through entity. 
Sec. 114. 36 MRSA §6201, sub-§2, as amended by PL 2001, c. 396, §40, is 
further amended to read: 
2. Claimant. "Claimant" means an individual who has filed a claim under this 
chapter and who was domiciled in this State and occupied a homestead in this State 
during the entire calendar year preceding the year in for which a claim for relief under 
this chapter is filed. "Claimant" also includes an individual who has filed a claim under 
this chapter and who was domiciled in this State and owned or otherwise maintained a 
homestead in this State during the entire calendar year preceding the year in for which the 
claim for relief under this chapter is filed and occupied that homestead for at least 6 
months during that year. Regardless of how many names of individuals appear on the 
Pag~ 34 - 123LR6698(Ol)-1 
property deed, the person who meets the qualifications described in this subsection and 
proves sole responsibility for the payment of the property taxes on the subject property is 
the claimant with respect to that property. If 2 or more individuals meet the qualifications 
in this subsection and share the payment of the rent or the responsibility for the payment 
of the property taxes, each individual may apply on the basis of the rent paid or the 
property taxes levied on the homestead that reflect the ownership percentage of the 
claimant and the claimant's household. 
If 2 or more individuals claim the same property, the matter must be referred to the State 
Tax Assessor, whose decision is final. Ownership of a homestead under this chapter may 
be by fee, by life tenancy, by bond for deed, as mortgagee or any other possessory 
interest in which the owner is personally responsible for the tax for which a refund is 
claimed. 
Sec. 115. 36 MRS A §6201, sub-§3, as enacted by PL 1987, c. 516, §§3 and 6, is 
amended to read: 
3. Elderly household. "Elderly household" means a household in which, during the 
year for which relief is requested: 
A. At least one member of the household has had attained the age of 62 during the 
year for which relief is requested; 
B. The claimant is cWTeBtly was not married and has had attained the age of 55 
during the year for which relief is requested and is was, due to disability, receiving 
federal disability payments, such as supplemental security income; or 
C. The claimant is currently was married and has had attained the age of 55 durffig 
the )'ear for which relief is requested and both the claimant and the claimant's spouse 
are were, due to disability, receiving federal disability payments, such as 
supplemental security income. 
Sec. 116. 36 MRSA §6201, sub-§9, as amended by PL 2005, c. 618, §17 and as 
affected by §22, is repealed and the following enacted in its place: 
9. Income. "Income" means Maine adjusted gross income determined in accordance 
with Part 8, modified as provided by this subsection. 
A. Maine adjusted gross income must be increased by the following amounts, to the 
extent not included in Maine adjusted gross income: 
(1) Contributions, including catch-up contributions, to any pension, annuity or 
retirement plan, including contributions to an individual retirement account under 
Section 408 of the Code, a simplified employee pension plan, a salary reduction 
simplified employee pension plan, a savings incentive match plan for employees 
plan and a deferred compensation plan under Section 457 of the Code and cash or 
deferred arrangements under Section 401 of the Code and qualified, or "Keogh," 
accounts; 
(2) Nontaxable contributions to a flexible spending arrangement under Section 
of the Code; 
(3) Amounts excluded from gross income under Section 129 of the Code; 
(4) Distributions from a ROTH IRA; 
(5) Capital gains; 
(6) The absolute value of the amount of trade or business loss, net operating loss 
carry-over, capital loss, rental loss, farm loss, partnership or S Corporation loss 
included in Maine adjusted gross income; 
(7) Inheritance; 
(8) Life insurance proceeds paid on death of an insured; 
(9) Nontaxable lawsuit rewards resulting from lawsuits for actions such as 
slander, libel and pain and suffering, excluding reimbursements such as medical 
and legal expenses associated with the case; 
(10) Support money; 
(11) Nontaxable strike benefits; 
(12) The gross amount of any pension or annuity, including railroad retirement 
benefits; 
(13) All payments received under the federal Social Security Act and state 
unemployment insurance laws; 
(14 ) Veterans' disability pensions; 
(15) Nontaxable interest received from the Federal Government or any of its 
agencies or instrumentalities; 
(16) Interest or dividends on obligations or securities of this State and its political 
subdivisions and authorities; 
(17) Workers' compensation and the gross amount of "loss of time" insurance; 
and 
(18) Cash public assistance and relief, but not including relief granted under this 
chapter. 
B. Maine adjusted gross income must be decreased by the following amounts, to the 
extent included in Maine adjusted gross income: 
(1) The first $5,000 of proceeds from a life insurance policy, whether paid in a 
lump sum or in the form of an annuity; 
(2) A rollover from an individual retirement account, pension or annuity fund or 
plan to an individual retirement account, pension or annuity fund or plan; 
(3) Gifts from nongovernmental sources; and 
(4) Surplus foods or other relief in kind supplied by a governmental agency. 
Sec. 117. 36 MRSA §6652, sub-§l, as amended by PL 2005, c. 618, §19 and c. 
623, §3, is repealed and the following enacted in its place: 
1. Generally. A person against whom taxes have been assessed pursuant to Part 2, 
except for chapters 111 and 112, with respect to eligible property and who has paid those 
taxes is entitled to reimbursement of a portion of those taxes from the State as provided in 
this chapter. The reimbursement under this chapter is the percentage of the taxes assessed 
and paid with respect to eligible property specified in subsection 4, except that for claims 
filed for the application period that begins on August 1, 2006 the reimbursement is 
limited to 90% of the taxes assessed and paid with respect to eligible property. For 
purposes of this chapter, a tax applied as a credit against a tax assessed pursuant to 
chapter 111 or 112 is a tax assessed pursuant to chapter 111 or 112. A taxpayer that 
included eligible property in its investment credit base under section 5219-E or 5219-M 
and claimed the credit provided in one or more of those sections on its income tax return 
may not be reimbursed under this chapter for taxes assessed on that same eligible 
property in a year in which one or more of those credits are taken. A successor in interest 
of a person against whom taxes have been assessed with respect to eligible property is 
entitled to reimbursement pursuant to this section, whether the tax was paid by the person 
assessed or bv the successor, as long as a transfer of the property in question to the 
successor has occurred and the successor is the owner of the property as of August 1 st of 
the year in which a claim for reimbursement may be filed pursuant to section 6654. For 
purposes of this subsection, "successor in interest" includes the initial successor and any 
subsequent successor. When an eligible successor in interest exists, the successor is the 
only person to whom reimbursement under this chapter may be made with respect to the 
transferred property. For an item of eligible property that is first subject to assessment 
under Part 2 on or after April 1, 2008, and for any item of eligible property for which 
reimbursement is paid under subsection 4, paragraph B, the reimbursement otherwise 
payable under this section with respect to that item of eligible property must be reduced 
by an amount equal to the amount, if any, by which the reimbursement otherwise payable 
under this section plus payments received by the taxpayer under a tax increment 
financing arrangement pursuant to Title 30-A, chapter 206, subchapter 1 with respect to 
that item of eligible property exceeds 100% of the property taxes assessed with respect to 
that item of eligible property. 
Sec. 
118. 
PL 
2003, 
c. 
20, 
Pt. 
B, 
§1, 
under 
the 
caption 
"ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF" 
in the 3rd part designated "Revenue Services - Bureau of 0002," as amended 
by PL 2003, c. 673, Pt. AAA, §4, is further amended to read: 
Revenue Services - Bureau of 0002 
Initiative: Provides for the appropriation of Personal Services and All Other funds to 
establish one Tax Section Manager position, one Tax Enforcement Officer position, one 
Senior Tax Examiner position, 2 Senior Revenue Agent positions, one Revenue Agent 
position and 5 Tax Examiner positions for the Tax Amnesty, Enforcement and 
Withholding on flow throughs initiative within the Maine Revenue Services Bureau. +fit! 
Bureau of Revenue Services must report on the success of the tax amnesty and tax 
enforcement programs by August 15th of each fiscal year to the joint standing 
committees of the Legislature having jurisdiction over taJ(ation and appropriation and 
financial affairs matters. 
General Fund 
2003-04 
2.004-05 
Positions - Legislative Count 
(11.000) 
(11.000) 
Personal Services 
765,194 
619,583 
All Other 
1,102,625 
65,021 
General Fund Total 
1,867,819 
684,604 
SUMMARY 
This bill makes the following changes to the laws governing taxation. 
1. 
It repeals a provision that authorizes the State Tax Assessor to subtract from 
revenues credit card fees associated with income tax returns filed by telephone. Maine's 
income tax T elefile system has been discontinued. 
2. It replaces the imprecise term "report" with the defined term "return" throughout 
the tax laws. 
3. It authorizes a 120-day extension of the time allowed for filing a return after the 
taxpayer has received a formal demand for filing. The Department of Administrative and 
Financial Services, Bureau of Revenue Services has been administratively granting such 
extensions. 
4. It provides clear statutory authority for the State Tax Assessor to disclose the fact 
that a person has or has not been issued a certificate of exemption under the sales tax law 
or the service provider tax law. The bureau has administratively interpreted existing law 
to authorize these disclosures. 
5. It replaces an obsolete reference to the Bureau of Property Taxation, which was 
merged into the Bureau of Taxation, now the Bureau of Revenue Services, a number of 
years ago. 
6. It clari fies (hat all owners of property proposed for tree growth classification must 
consent to the application in writing. 
7. It repeals an obsolete provision that related to valuation of tree growth property 
for taxable years prior to April 1, 1983. 
8. 
It repeals obsolete language relating to the computation of tree growth 
reimbursements and authorizes the State Tax Assessor to adopt rules governing the 
assessment of tree growth land and the computation of reimbursements. 
9. 
It repeals obsolete provisions relating to the administration of changes to the 
Maine Tree Growth Tax Law that were enacted in 1981 and corrects an erroneous 
reference. 
Pq;c 31\ - J23LRl!tr91l(OJ)-~ 
10. 
It replaces obsolete tenninology, corrects cross-references and clarifies the 
definition of "nonprofit." 
11. 
It clarifies certain deadlines relating to the certification of pollution control 
facilities for property tax exemption. 
12. It clarifies the deadline for filing an application for a homestead property tax 
exemption and repeals an obsolete provision that governed program applications for the 
1998 tax year. 
13. It makes technical changes to the business equipment tax exemption law enacted 
in 2006. 
14. 
It clarifies that all owners of property proposed for farm and open space 
classification must consent to the application in writing and repeals obsolete language. 
15. 
It clarifies the deadlines for notifying the larldowner of the status of an 
application for classification of land under the farm and open space law and for reporting 
income from farmland under the farm and open space law, corrects a cross-reference and 
reallocates a paragraph into the subsection to which the paragraph's subj ect matter relates. 
16. 
It repeals an obsolete statute that provided for transfers to the Unorganized 
Territory Education and Services Fund in fiscal years 1985 to 1990. 
17. It replaces the word "primary" with "elementary" in the definition of "school" to 
match the term that is defined and used in other Maine statutes pertaining to schools. 
18. It repeals a superfluous provision relating to determinations of residency under 
the sales and use tax law. 
19. It eliminates redundant language. 
20. It clarifies exemptions for certain sales of residential fuel and electricity. 
21. It repeals an obsolete provision relating to the administration of changes that 
were enacted in 1989 in the sales tax exemption for continuous residence in a hotel, 
rooming house, tourist camp or trailer camp. 
22. It simplifies and clarifies existing law providing that certain sales tax exemptions 
for vehicles purchased by nonresidents are not limited to natural persons. 
23. It clarifies existing law providing that certain sales tax exemptions for items 
purchased by nonresidents are limited to natural persons. 
24. It clarifies the sales and use tax exemption for water and air pollution control 
facilities by including chemicals and supplies for certified facilities within the scope of 
the exemption. The bureau currently treats these items as exempt based on a 1994 court 
decision. 
25. It clarifies the exemption for sales of residential water. 
26. It clarifies an existing sales tax exemption for property used in production. 
27. It relocates an existing sales and use tax exemption for certain sales of electricity 
or water to the section that provides for exemptions. 
28. It repeals a statute that imposes criminal penalties for violation of unspecified 
laws. 
29. 
It repeals the solid waste reduction investment tax credit in the msurance 
premium tax law. The credit is no longer available. 
30. 
It corrects the name of the state agency that licenses private nonmedical 
institutions to reflect legislation effective July 1, 2004 that combined and reorganized the 
former Department of Human Services and the former Department of Behavioral and 
Developmental Services. 
31. It clarifies that certain separately stated transportation charges are excluded from 
the sale price under the service provider tax law on the same basis as under the sales and 
use tax law. 
32. 
It adds a specific exemption for purchases of fabrication services to print 
advertising or promotional materials for the purpose of subsequently transporting those 
materials outside the State for use by the purchaser thereafter solely outside the State. 
This is the administrative position taken by the bureau. 
33. It clarifies that the basis of reporting for purposes of the gasoline tax is actual 
measured gallonage, without any adjustment for temperature or barometric pressure 
variations. 
34. It adds a definition of "retail dealer" to the gasoline tax law in order to clarify the 
type of transaction that qualifies for a retail shrinkage refund under the Maine Revised 
Statutes, Title 36, section 2906, subsection 4. 
35. It clarifies that when gasoline is placed in a retail tank it is deemed to have been 
sold for purposes of the gasoline tax law. This is longstanding administrative policy of 
the bureau. 
36. It clarifies that gasoline tax refunds to a retail dealer based on shrinkage or loss 
by evaporation are based on purchases of gasoline delivered to the dealer's tanks and 
actually sold from those tanks, rather than on the total gross purchases made during the 
year. 
37. It eliminates a reference to a "monthly" refund claim for fuel used in commercial 
uses since there is no requirement that the claims be filed monthly. 
38. It repeals the requirement that original invoices must be submitted with refund 
claims for gasoline tax paid on fuel used in locally encouraged vehicles. This requirement 
has not been enforced for several years. It also eliminates the requirement that refund 
claims must be filed quarterly. By administrative policy they may be filed for any open 
period. 
39. It adds a specific provision to clarify that gasoline tax refunds for fuel used in 
aircraft are reduced by the amount of Maine use tax due on the fuel. This is consistent 
with longstanding administrative practice of the bureau. 
40. It eliminates an obsolete cross-reference to the affidavit prescribed for registered 
sellers in Title 36, section 3205. Title 36, section 3205 no longer contains any reference 
to an affidavit. 
41. It repeals statutes that forn1erly governed taxation of fuel consumed by interstate 
buses. This tax is now reported under the International Fuel Tax Agreement. 
42. It clarifies that distillates delivered to a consumer or a retail outlet, whether or 
not "on consignment," are deemed to have been sold for purposes of the special fuel tax. 
This is longstanding administrative policy of the bureau. 
43. It clarifies that propane shrinkage allowances must be calculated on an annual 
basis. This is current administrative policy of the bureau. 
44. It limits the exemption for sales of special fuel to the State and its political 
subdivisions to bulk sales. Because of the way the tax is imposed it is not practical to 
make exempt sales at the pump. Governmental entities may apply for a refund of the tax 
paid on those sales. 
45. It removes obsolete and redundant language relating to refund applications by 
special fuel users. 
46. 
It eliminates the requirement that original invoices must be submitted with 
refund claims for special fuel tax paid by political subdivisions. This requirement has not 
been enforced for several years. It also repeals an obsolete provision that governed 
refunds of tax paid before April of 1986. 
47. It clarifies the administration of the special fuel tax. 
48. 
It eliminates the requirement that original invoices must be submitted with 
refund claims for special fuel tax paid on fuel used in locally encouraged vehicles. This 
requirement has not been enforced for several years. It also eliminates the requirement 
that refund claims must be filed quarterly. By administrative policy they may be filed for 
any open period. 
49. 
It eliminates the requirement that original invoices must be submitted with 
refund claims for special fuel tax paid on fuel used off-highway. This requirement has not 
been enforced for several years. It also eliminates a reference to a "monthly" refund claim 
since there is no requirement that the claims be filed monthly. 
50. It repeals the definition of "dealer" from the cigarette tax law. There is no longer 
any distinction between dealers and distributors. 
51. It clarifies the cigarette tax law by replacing references to "license holder" with 
the defined term "distributor." 
52. It repeals superfluous criminal provisions and clarifies an ambiguous statute 
prohibiting sale and reuse of cigarette stamps. 
53. It repeals obsolete provisions setting discount rates for cigarette stamps that are 
no longer in effect. 
54. It prohibits the return of partial rolls of cigarette stamps for credit unless the 
person is ceasing business as a distributor. This is longstanding bureau policy. It also 
repeals unnecessary language regarding the payment of refunds. 
55. 
It deletes the obsolete term "dealer" from the cigarette tax law and clarifies 
certain record-keeping requirements. 
56. It clarifies that the personal use exception applies to importation of tobacco 
products other than cigars and that any quantity of untaxed tobacco products imported 
into the State is subject to tax. 
57. It repeals the law requiring certain fiduciaries to notify the State Tax Assessor of 
their appointment. This requirement has not been enforced for many years. 
58. It clarifies that a taxpayer's estimated tax liability includes all taxes due under the 
income tax law except withholding tax. 
59. It clarifies that a person who fails to withhold tax as required is not relieved from 
liability for penalties for failure to file returns and pay withholding tax. This is the 
bureau's longstanding position. 
60. 
It consolidates 2 closely related provlSlons relating to overpayments of 
withholding tax by employers and pass-through entities into a single subsection and 
eliminates a superfluous authorization for rulemaking that has never been implemented. 
61. It clarifies the determination of the period during which a claimant under the 
Circuitbreaker Program must have been domiciled in Maine. 
62. 
It clarifies the definition of "elderly household" for purposes of the 
Circuitbreaker Program. The new language is consistent with the way the statute has been 
administratively interpreted by the bureau. 
63. It restructures for clarity the definition of "income" in the Circuitbreaker Program 
law, but does not change the way in which income is determined for purposes of the 
program. 
64. It makes technical changes to the business equipment tax reimbursement law. It 
also corrects a conflict created by Public Law 2005, chapters 618 and 623, which affected 
the same provision of law, by incorporating changes made by both laws. 
65. It eliminates the requirement for an annual revenue enhancement and amnesty 
report to the Legislature by the bureau. 
I 
The bill also corrects several grammatical errors and replaces archaic, redundant and 
gender-specific language.