An Act To Make Minor Substantive Changes to the Tax Laws
Maine Legislature, Session 123, LD 2151
Committee: Taxation
Sponsors: PIOTTI, PERRY
Amends: 30-A MRSA §5223, 35-A MRSA §3402, 35-A MRSA §3403, 36 MRSA §112, 36 MRSA §187-B, 36 MRSA §191, 36 MRSA §193, 36 MRSA §457, 36 MRSA §1487, 36 MRSA §1752, 36 MRSA §1760, 36 MRSA §1763, 36 MRSA §2017, 36 MRSA §2903, 36 MRSA §3203, 36 MRSA §4063, 36 MRSA §4071, 36 MRSA §4075, 36 MRSA §5219-S, 36 MRSA §5219-B, 36 MRSA §5245, 36 MRSA §6664, 36 MRSA §6902

Legislative Document 
No. 2151 
H.P. 1531 
House of Representatives, January 15,2008 
An Act To Make Minor Substantive 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 PIOTTI of Unity. 
Cosponsored by Senator PERRY of Penobscot. 
PrllJtnl ()1l ICC)C1eJ paper 
7J1~ 
frl.11!d£~{ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §5223, sub-§3, as amended by PL 2007, c. 413, §3, IS 
further amended to read: 
3. Conditions for approval. Designation of a development district is subject to the 
following conditions. 
A. 
At least 25%, by area, of the real property within a development district must 
meet at least one of the following criteria: 
(1) Must be a blighted area; 
(2) Must be in need of rehabilitation, redevelopment or conservation work; or 
(3) Must be suitable for commercial or arts district uses. 
B. 
The total area of a single development district may not exceed 2% of the total 
acreage of the municipality. The total area of all development districts may not 
exceed 5% of the total acreage of the municipality. 
C. 
The original assessed value of a proposed tax increment financing district plus 
the original assessed value of all existing tax increment financing districts within the 
municipality may not exceed 5% of the total value of taxable property within the 
municipality as of April 1 st preceding the date of the commissioner's approval of the 
designation of the proposed tax increment financing district. 
Excluded from the calculation in this paragraph is any district excluded from the 
calculation under former section 5253, subsection 1, paragraph C and any district 
designated on or after the effective date of this chapter that meets the following 
criteria: 
(1) 
The development program contains project costs, authorized by section 
5225, subsection 1, paragraph A, that exceed $10,000,000; 
(2) The geographic area consists entirely of contiguous property owned by a 
single taxpayer; 
(3) The assessed value exceeds 10% of the total value of taxable property within 
the municipality; and 
(4) The development program does not contain project costs authorized by 
section 5225, subsection 1, paragraph C. 
For the purpose of this paragraph, "contiguous property" includes a parcel or parcels 
of land divided by a road, power line or right-of-way. 
D. 
The aggregate value of municipal general obligation indebtedness financed by 
the proceeds from tax increment financing districts within any county may not exceed 
$50,000,000 adjusted by a factor equal to the percentage change in the United States 
Bureau of Labor Statistics Consumer Price Index, United States City Average from 
January 1, 1996 to the date of calculation. 
(1) The commissioner may adopt rules necessary to allocate or apportion the 
designation of captured assessed value of property within proposed tax increment 
financing districts to permit compliance with the condition in this paragraph. 
Rules adopted pursuant to this paragraph are routine technical rules as defined in 
Title 5, chapter 375, subchapter H-A 2-A. 
(2) 
The acquisition, construction and installment of all real and personal 
property improvements, buildings, structures, fixtures and equipment included 
within the development program and financed through municipal bonded 
indebtedness must be completed within 5 years of the commissioner's approval of 
the designation of the tax increment financing district. 
The conditions in paragraphs A to D do not apply to approved downtown tax increment 
financing districts, tax increment financing districts included within Pine Tree 
Development Zones designated and approved under subchapter 3 or tax increment 
financing districts that consist solely of one or more community wind power generation 
facilities owned by a community wind power generator or geAerators that has been 
certified by the Public Utilities Commission pursuant to Title J6 35-A, section 5219 AA 
3403, subsection 3. 
Sec. 2. 35-A MRSA §3402, as amended by PL 2005, c. 646, §3, IS further 
amended to read: 
§3402. Legislative findings 
The Legislature finds that it is in the public interest to explore opportunities for and 
encourage the development, where appropriate, of wind energy production in the State in 
a manner that is consistent with all state and federal environmental standards and that 
achieves reliable, cost-effective, sustainable energy production on those sites in the State 
that will attract investment and permit the development of viable wind energy projects. 
The Legislature finds that the development of the wind energy potential in the State needs 
to be integrated into the existing energy supply and transmission systems in a way that 
achieves system reliability, total capital cost-effectiveness and optimum short-term and 
long-term benefits to Maine people. The Legislature finds it is in the public interest to 
encourage the construction and operation of community wind power geAerator projects 
generation facilities in the State. For the purposes of this sectioA chapter, "community 
wind power geAerator generation facility" means an electricity-generating facility at any 
one site with instantaneous generating nameplate capacity of not more than 10 megawatts 
that is powered entirely by wind energy. The Legislature also finds it is in the public 
interest to encourage wind energy research and the development of wind generation 
equipment manufacturing facilities in the State. 
Sec. 3. 35-A MRSA §3403, sub-§3 is enacted to read: 
3. Certification. The commission may certify a person as a community wind power 
generator if the commission determines that such a certification would support 
construction of a community wind power generation facility in this State and that the 
person will be the owner of that facility. The person must demonstrate to the commission 
that the construction of the community wind power generation facility would not be 
likely to occur absent the availability of the benefits under Title 36, section 1760, 
subsection 89 and Title 36, sections 2017 and 5219-BB. The commission may not certify 
a person as a community wind power generator with respect to a community wind power 
I 
generation facility for which the person commenced the site permit application process 
prior to August 23, 2006. 
Sec. 4. 36 MRSA §112, sub-§4-A is enacted to read: 
4-A. Sampling. The assessor may use a generally recognized statistical sampling or 
other sampling technique in examining the records of a taxpayer when the assessor finds 
that: 
A. 
The taxpayer's records are inadequate or insufficient, so that performing a 
comprehensive audit for the period or periods in question is not possible; 
B. The taxpayer's records are substantially complete, but are so detailed, complex or 
voluminous that performing an audit of every individual transaction documented in 
those records would be impractical or unreasonable; or 
C. The cost to the taxpayer or the State of conducting a comprehensive audit of the 
taxpayer's records would be unreasonable. 
The assessor and the taxpayer shall make a good faith effort to reach agreement as to the 
means and methods to be used in any audit that entails sampling. The failure to reach 
agreement with the taxpayer does not preclude the assessor from using any sampling 
technique in the audit that the assessor considers appropriate under the circumstances, as 
long as the assessor provides the taxpayer with a written description of the technique or 
techniques to be used prior to conducting the audit. 
Sec. 5. 36 MRSA §187-B, sub-§6, as enacted by PL 1991, c. 873, §5 and 
affected by §§8 and 9, is amended to read: 
6. 
Penalties not exclusive. 
Each penalty provided by under this section IS In 
addition to any interest and other penalties provided by under this section and other law, 
except as otherwise provided in this section, and interest. Interest may not accrue on the 
penalty. This section does not apply to any filing or payment responsibility pursuant to 
Part 2 except that this section does apply to a filing or payment responsibility pursuant to 
the state tax on telecommunications personal property imposed under section 457. The 
penalties imposed by under subsections 1 and 2 accrue automatically, without being 
assessed by the State Tax Assessor, and each. 
Each penalty imposed by under this 
section is recoverable by the State Ta)( Assessor assessor in the same manner as if it were 
a tax assessed under this Title. 
Sec. 6. 36 MRS A §191, sub-§2, ~I, as amended by PL 2007, c. 328, §3, IS 
further amended to read: 
II. 
The disclosure to an authorized representative of the Maine Milk Commission of 
information on the quantity of packaged milk handled in the State and subject to the 
milk handling fee established in section 4902 and other information obtained by the 
assessor in the administration of chapter 721; and 
Sec. 7. 36 MRSA §191, sub-§2, ~JJ, as enacted by PL 2007, c. 328, §4, IS 
amended to read: 
JJ. The disclosure to the State Purchasing Agent of a person's sales tax standing as 
necessary to enforce Title 5, section 1825-B, subsection 14~; and 
Sec. 8. 36 MRSA §191, sub-§2, ~ 
is enacted to read: 
KK. The disclosure to an authorized representative of the Department of Economic 
and Community Development of information required for the administration of the 
media production credit under section 5219-Y, the employment tax increment 
financing program under chapter 917, the media production reimbursement program 
under chapter 919-A or the Pine Tree Development Zone program under Title 30-A, 
chapter 206, subchapter 4. 
Sec. 9. 36 MRSA §193, sub-§2, ~, as amended by PL 2007, c. 437, §6, IS 
further amended to read: 
B. 
Unless otherwise provided by a rule adopted pursuant to this subsection, in the 
case of a payroll processor as defined in Title 10, chapter 222 that submits returns 
pursuant to section 5253 or Title 26, chapter 13, subchapter 5 or 7 for 100 or more 
employers, the assessor may require that the returns be filed by electronic data 
submission. 
Sec. 10. 36 MRSA §193, sub-§3, as amended by PL 2007, c. 437, §6, is further 
8 
amended to read: 
3. 
Payment by electronic funds transfer. The State Tax Assessor, with the 
approval of the Commissioner of Administrative and Financial Services, may adopt a rule 
allowing or requiring the payment of a tax or the refund of a tax by electronic funds 
transfer. An electronic funds transfer allowed or required by the assessor pursuant to this 
subsection in payment of a tax obligation to the State is considered a return. For the 
purposes of this subsection, "tax" includes Competitive Skills Scholarship Fund 
contributions and unemployment insurance contributions required to be paid to the State 
pursuant to Title 26. 
A. 
Unless otherwise provided by a rule adopted pursuant to this subsection, in the 
case of a person that is liable for $200,000 or more per year pursuant to section 5253 
or for $400,000 or more per year in payments of any other single tax type, the 
assessor may require payment or refund of that tax by electronic funds transfer. 
B. 
Unless otherwise provided by a rule adopted pursuant to this subsection, in the 
case of a payroll processor as defined in Title 10, chapter 222, the assessor may 
require payment or refund of taxes pursuant to section 5253 and payment or refund of 
Competitive Skills Scholarship Fund contributions and unemployment insurance 
contributions pursuant to Title 26, chapter 13, subchapter subchapters 5 and 7, 
respectively, by electronic funds transfer. 
Sec. 11. 36 MRSA §457, as amended by PL 200 I, c. 559, Pt. H, § I, is further 
amended to read: 
§457. State tax on telecommunications personal property 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
"Telecommunications business" means a person engaged in the activity of 
providing interactive 2-way communication services for compensation. 
B. 
"Telecommunications personal property" means personal property used for the 
transmission of any interactive 2-way communications, including voice, image, data 
and information. Transmission of communications includes the use of any, via a 
medium such as wires, cables, community antenna television or other broad band 
cables, microwaves, radio waves, light waves or any combination of those or similar 
media. ~Telecommunications personal property~ includes qualifying property used to 
provide telegraph service. ~Telecommunications personal property~ does not include 
property used solely to provide value-added nonvoice services in which computer 
processing applications are used to act on the form, content, code and protocol of the 
information to be transmitted, unless those services are provided under ~ tariff 
approved by the Public Utilities Commission. 
~Telecommunications personal 
property~ does not include single or multiline standard telephone instruments. 
Notwithstanding section 551, ~telecommunications personal property~ includes any 
interest of a telecommunications business in poles. 
2. Tax imposed. A state tax is imposed on telecommunications personal property at 
the rate of 27 mills provided in this subsection times the just value of the property fBf 
assessments made before December 31, 2003. Just value and ownership of the property 
must be determined as of the April 1 st preceding the assessment. For assessments made 
after December 31, 2003, the The rate of tax is: 
A. 
For assessments made in 2004, 26 mills; 
B. 
For assessments made in 2005, 25 mills; 
C. 
For assessments made in 2006, 24 mills; 
D. 
For assessments made in 2007, 23 mills; 
E. 
For assessments made in 2008, 22 mills; 
F. 
For assessments made in 2009, 21 mills; and 
G. 
For assessments made in 2010 and subsequent years, 20 mills. 
3-A. Returns to State Tax Assessor. Each telecommunications business owning or 
leasing telecommunications personal property that on the first day of April in any year is 
situated, whether permanently or temporarily, within this State shall, on or before the 
20th day of April in that year, return to the State Tax Assessor a complete list of such 
property on a form to be furnished by the State Tax Assessor. 
4. Assessment. The State Tax Assessor shall assess a tax on telecommunications 
personal 
property 
owned 
or 
leased 
by 
a 
telecommunications 
business. 
Telecommunications personal property owned or leased by a person wHe that is not a 
telecommunications business must be assessed a tax by the municipal assessor in the 
municipality in which the property is located on April 1st of the taxable year. The date of 
assessment of telecommunications personal property by municipalities must be consistent 
with other property subject to property taxation by the municipalities. 
5-B. 
Procedure. 
The tax on telecommunications personal property of a 
telecommunications business must be assessed and paid in accordance with this 
subsection. 
A. 
The State Tax Assessor shall make the assessment by May 30th of each year. 
B. 
For the 1999 tax year, a payment must be made no later than August 15, 1999 
equal to the amount by which the 1999 gross tax assessment exceeds the estimated 
tax paid for that tax year. 
C. 
For tax years subsequent to 1999, the The tax assessment must be paid no later 
than the August 15th following the date of assessment. 
D. 
The estimated prepayment made for the 2000 tax year must be applied to the 
1999 gross ta], assessment that must be made by August 15, 1999. 
7. Collection. Taxes assessed under this section by the State Tax Assessor must be 
enforced as generally provided by this Title. 
Taxes assessed under this section by 
municipal assessors must be enforced in the same way as other locally assessed personal 
property taxes. 
8. Penalty. Underpayment of the tax imposed by this section and the prepayment of 
estimated tax required b~r this section are subject to the penalties imposed by section 187 
fh 
Sec. 12. 36 MRSA §1487, sub-§2, as amended by PL 1995, c. 29, § I, is further 
amended to read: 
2. State Tax Assessor. In the unorganized territory, the The State Tax Assessor 
shall appoint agents to collect the excise tax in the unorganized territory. 
Agents, 
including municipalities designated as agents, are allowed a fee of $4 for each tax receipt 
issued. The State Tax Assessor may authorize the offset of credit card fees incurred in 
the collection of the excise taxes against the receipts from those collections. Agents shall 
deposit the remainder on or before the 20th day of each month following receipt with the 
Treasurer of State. The Treasurer of State shall make quarterly payments to each county 
in an amount that is equal to the receipts for that period from each county. 
Those 
payments must be made at the same time as payments under section 1606. 
County 
receipts under this section must be deposited in the county's unorganized territory fund. 
Sec. 13. 36 MRSA §1752, sub-§l1, as amended by PL 2007, c. 410, §1 and 
affected by §6 and amended by c. 437, § I 0, is further amended to read: 
11. Retail sale. "Retail sale" means any sale of tangible personal property or a 
taxable service in the ordinary course of business for any purpose other than for resale, 
except resale as a casual sale, in the form of tangible personal property. "Retail sale" also 
means any sale of a taxable service in the ordinary course of business for any purpose 
other than for resale, except resale as a casual sale. 
A. "Retail sale" includes: 
(I) Conditional sales, installment lease sales and any other transfer of tangible 
personal property when the title is retained as security for the payment of the 
purchase price and is intended to be transferred later; 
(2) Sale of products for internal human consumption to a person for resale 
through vending machines when sold to a person more than 50% of whose gross 
receipts from the retail sale of tangible personal property are derived from sales 
through vending machines. The tax must be paid by the retailer to the State; 
(3) A sale in the ordinary course of business by a retailer to a purchaser who is 
not engaged in selling that kind of tangible personal property or taxable service in 
the ordinary course of repeated and successive transactions of like character; and 
(4) The sale or liquidation of a business or the sale of substantially all of the 
assets of a business, to the extent that the seller purchased the assets of the 
business for resale, lease or rental in the ordinary course of business, except 
when: 
(a) The sale is to an affiliated entity and the transferee, or ultimate transferee 
in a series of transactions among affiliated entities, purchases the assets for 
resale, lease or rental in the ordinary course of business; or 
(b) The sale is to a person that purchases the assets for resale, lease or rental 
in the ordinary course of business or that purchases the assets for transfer to 
an affiliate, directly or through a series of transactions among affiliated 
entities, for resale, lease or rental by the affiliate in the ordinary course of 
business. 
For purposes of this subparagraph, "affiliate" or "affiliated" includes both direct 
and indirect affiliates. 
B. 
"Retail sale" does not include: 
(I) Any casual sale; 
(2) Any sale by a personal representative in the settlement of an estate, unless 
the sale is made through a retailer, or unless the sale is made in the continuation 
or operation of a business; 
(3) The sale, to a person engaged in the business of renting automobiles, of 
automobiles, integral parts of automobiles or accessories to automobiles, for 
rental or for use in an automobile rented on a short-term basis; 
(4) The sale, to a person engaged in the business of renting video media and 
video equipment, of video media or video equipment for rental; 
(5) 
The sale, to a person engaged in the business of renting or leasing 
automobiles, of automobiles for rental or lease for one year or more; 
(6) The sale, to a person engaged in the business of providing cable or satellite 
television services, of associated equipment for rental or lease to subscribers in 
conjunction with a sale of extended cable or extended satellite television services; 
I 
(7) The sale, to a person engaged in the business of renting furniture, or audio 
media and audio equipment, of furniture, audio media or audio equipment for 
rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 11-
105;ef 
(8) The sale of loaner vehicles to a new vehicle dealer licensed as such pursuant 
to Title 29-A, section 953. For purposes of this subparagraph, "loaner vehicle" 
means an automobile to be provided to the dealer's service customers for short 
term use free of charge pursuant to the dealer's franchise, as defined in Title 10, 
section 1171, subsection 6.; 
(9) The sale of automobile repair parts used in the performance of repair services 
II 
on an automobile pursuant to an extended service contract sold on or after 
September 20, 2007 that entitles the purchaser to specific benefits in the service 
of the automobile for a specific duration; 
(l0) The sale, to a retailer that has been issued a resale certificate pursuant to 
section 1754-B, subsection 2-B or 2-C, of tangible personal property for resale in 
the form of tangible personal property, except resale as a casual sale; 
(II) The sale, to a retailer that has been issued a resale certificate pursuant to 
section 1754-B, subsection 2-B or 2-C, of a taxable service for resale, except 
resale as a casual sale; 
(12) The sale, to a retailer that is not required to register under section 1754-B, 
of tangible personal property for resale outside the State in the form of tangible 
personal property, except resale as a casual sale; or 
(13) The sale, to a retailer that is not required to register under section 1754-B, 
of a taxable service for resale outside the State, except resale as a casual sale. 
Sec. 14. 36 MRSA §1760, sub-§89, as enacted by PL 2005, c. 646, §5, IS 
amended to read: 
89. Sales of tangible personal property to qualified community wind power 
generators. Beginning October 1,2006, sales of tangible personal property to a qualified 
community wind power generator, as defined in section 5219 /\A 2017, subsection I, 
paragraph 8, for use directly and primarily in the generation of electricity by--that in this 
State at a community wind power generator generation facility, as defined in section 
2017, subsection I, paragraph A-I. The exemption provided by this subsection is limited 
for each qualified community wind pO'Ner generator to sales occurring on or before 
December 31, 2011. 
Sec. 15. 36 MRSA §1763 is amended to read: 
§1763. Presumptions 
The burden of proving that a transaction was not taxable shall be upon is on the 
person charged with tax liability. The presumption that a sale was not for resale may be 
overcome during an audit or upon reconsideration if the seller proves that the purchaser 
was the holder of a currently valid resale certificate as provided in section 1754-8 at the 
I 
time of the sale and that the property purchased was purchased for resale by the purchaser 
in the ordinary course of business. 
Sec. 16. 36 MRS A §2017, sub-§I, ~A-l is enacted to read: 
A-I. "Community wind power generation facility" means an electricity-generating 
facility at anyone site with an instantaneous generating nameplate capacity of not 
more than 10 megawatts that is powered entirely by wind energy. 
Sec. 17. 36 MRSA §2017, sub-§I, ~, as enacted by PL 2005, c. 646, §6, is 
amended to read: 
B. 
"Qualified community wind power generator" has the meaning given to it in 
section 5219 Ai\. means a person that has been certified as a community wind power 
II 
generator by the Public Utilities Commission pursuant to Title 35-A, section 3403, 
subsection 3. 
Sec. 18. 36 MRSA §2017, sub-§2, as enacted by PL 2005, c. 646, §6, is amended 
to read: 
2. Reimbursement allowed. A reimbursement is allowed as provided in this section 
for a tax paid pursuant to this Part with respect to the sale or use of tangible personal 
property that is physicaUy incorporated in and becomes a permanent part of real property 
that is owned by or sold to a qualified community wind power generator and that is used 
directly and primarily by the qualified community wind power generator in the generation 
of electricity at a community wind power generation facility in this State. 
Sec. 19. 36 MRSA §2017, sub-§3, as enacted by PL 2005, c. 646, §6, is amended 
to read: 
3. Claim for reimbursement. Claims under this section for reimbursement of taxes 
are controlled by this subsection. 
A. A claim for reimbursement under this section must be filed by the contractor or 
subcontractor with the State Tax Assessor within 3 years from the date on which the 
tangible personal property was incorporated into real property. The reimbursement 
claim must be submitted on a form prescribed by the assessor and must be 
accompanied by a statement from a qualified community wind power generator 
certifying, under penalties of perjury, that the personal property with respect to which 
the tax was paid by the claimant has been placed in use directly and primarily by-the 
qualified in the generation of electricity in this State at a community wind power 
generator generation facility. All records pertaining to such certification and to the 
transactions in question must be retained for at least 6 years by the contractor or 
subcontractor, by the qualified community wind power generator and by the person, 
if any, that sold the real property in question to that business the qualified community 
wind power generator. The reimbursement claim must be accompanied by such 
additional information as the assessor may require. If a sales or use tax is included in 
the contractor's or subcontractor's contract price, the contractor or subcontractor shall 
file, at the request of the qualified community wind power generator, a claim for 
reimbursement in accordance with this section and pay the reimbursement to the 
qualified community wind power generator. 
B. 
If, by agreement between the contractor or subcontractor and the qualified 
community wind power generator, the contractor or subcontractor assigns its right to 
claim and receive reimbursement, the qualified community wind power generator 
must file a claim for reimbursement in accordance with this subsection. 
Reimbursement may not be issued to a qualified community wind power generator 
under this paragraph unless the contractor or subcontractor has previously submitted 
to the bttreau assessor a certificate, signed by the contractor or subcontractor, 
releasing the contractor's or subcontractor's claim to the reimbursement. The 
certificate must be in a format prescribed by the State Tax Assessor assessor. 
Sec. 20. 36 MRSA §2017, sub-§4, ~A, as enacted by PL 2005, c. 646, §6, is 
amended to read: 
A. 
Reimbursements made by the State Tax Assessor pursuant to this section are 
limited to taxes paid in connection with sales of tangible personal property that occur 
within a period of 5 years from the date the qualified community wind power 
generator receiving the property is certified pursuant to section 5219 AA Title 35-A, 
section 3403, subsection 3 or by December 31, 2011, whichever occurs first. 
Sec. 21. 36 MRSA §2903, sub-§3, as amended by PL 2007, c. 407, § 1, is further 
amended to read: 
3. Legal incidence of tax. Internal combustion engine fuel may be taxed only once 
under this section. 
The tax imposed by this section is declared to be a levy and 
assessment on the ultimate consumer, and other persons levied and assessed pursuant to 
this chapter are agents of the State for the collection of the tax. The distributor that first 
receives the fuel in this State is primarily responsible for paying the tax except when the 
fuel is sold and delivered to a licensed exporter wholly for exportation from the State or 
to another licensed distributor in the State, in which case the purchasing distributor is 
primarily responsible for paying the tax. If a distributor includes the tax on a bill to a 
customer, it must be shown as a separate line item and identified as "Maine gasoline tax. " 
Sec. 22. 36 MRSA §3203, sub-§2, as amended by PL 1999, c. 733, §5 and 
affected by § 17, is further amended to read: 
2. Legal incidence of tax. Special fuel may be taxed only once under this section. 
The tax imposed by this section is declared to be a levy and assessment on the ultimate 
consumer, and other persons levied and assessed pursuant to this chapter are agents of the 
State for the collection of the tax. The supplier and retailer are primarily responsible for 
paying the tax. When a supplier sells and delivers to a licensed exporter wholly for 
exportation from the State or to another supplier in the State, the purchasing supplier is 
primarily responsible for paying the tax. If a supplier or retailer includes the tax on a bill 
to a customer, it must be shown as a separate line item and identified as "Maine special 
fuel tax. " 
Sec. 23. 36 MRS A §4062, sub-§2, as amended by PL 2003, c. 673, Pt. D, §2, is 
further amended to read: 
2. Federal gross estate. "Federal gross estate" means the gross estate of a decedent 
as determined for the pHFpose of the federal estate tax Hnder by the assessor in accordance 
with the Code. 
Sec. 24. 36 MRS A §4062, sub-§8, as enacted by PL 2005, c. 622, § 17 and 
affected by §33, is repealed. 
Sec. 25. 36 MRS A §4062, sub-§8-A is enacted to read: 
8-A. Value. When determining value for purposes of this chapter, "value" means, 
with respect to an estate or to property included in an estate, including Maine qualified 
terminable interest property, the value as determined by the assessor in accordance with 
the Code. 
Sec. 26. 36 MRSA §4063, as repealed and replaced by PL 2005, c. 622, § 18, is 
amended to read: 
§4063. Tax on estate of resident 
A tax is imposed upon the transfer of the estate of every person who dies on or after 
January 1, 2002 and who, at the time of death, was a resident of this State. The amount 
of this tax is equal to the federal credit multiplied by a fraction, the numerator of which is 
the value of that portion of the decedent's federal gross estate that consists of real and 
tangible personal property located in the State plus the value of all intangible personal 
property and the denominator of which is the value of the decedent's federal gross estate. 
For pHrposes of this section, "federal gross estate" means the decedent's federal gross 
estate as modified by Maine qHalified terminable interest property and Maine elective 
property. 
A credit against the tax imposed by this section is allowed for all constitutionally 
valid estate, inheritance, legacy and succession taxes actually paid to another jurisdiction 
upon the value of real or tangible personal property owned by the decedent or subject to 
those taxes as a part of or in connection with the estate and located in that jurisdiction if 
the value of that property is also included in the value of the decedent's intangible 
personal property subject to taxation under this section. The credit provided by this 
section may not exceed the amount of tax otherwise due multiplied by a fraction, the 
numerator of which is the value of the property located in the other taxing jurisdiction 
subject to this credit on which tax was actually paid and the denominator of which is the 
value of the decedent's federal gross estate. 
For purposes of this section, "another 
jurisdiction" means another state, the District of Columbia, a possession or territory of the 
United States or any political subdivision of a foreign country that is analogous to a state. 
For purposes of this section, "federal gross estate" means the decedent's federal gross 
estate as modified by Maine qualified terminable interest property and Maine elective 
prope~ 
Sec. 27. 36 MRSA §4071, as amended by PL 2005, c. 622, §§22 and 23 and 
affected by §33, is repealed. 
Page II - 123LR3080(OI)-1 
Sec. 28. 36 MRSA §4075, as enacted by PL 1981, c. 451, § 7, is amended to read: 
§4075. Amount of tax determined 
The State Tax Assessor shall determine the amount of tax due and payable upon any 
estate or part of that estate. If, after determination and certification of the full amount of 
the tax upon an estate or any interest in or part of an estate, the estate shall receive 
receives or become becomes entitled to property in addition to that shown in the estate 
tax return filed with the State Tax Assessor assessor or the United States Internal 
Revenue Service changes any item increasing the estate's liability shown in the Maine 
estate tax return filed with the assessor, the personal representative shall forth'Nith notify 
the State Tax ,A,ssessor 'Nho within 90 days of any receipt, entitlement or change file an 
I I 
amended Maine estate tax return. The assessor shall upon being informed, by the notice 
or otherwise, determine the amount of additional tax, if any, due and payable thereon and 
shall certify the amount due, including interest and penalties, to the person by whom the 
tax is payable, including interest and penalties. 
Sec. 29. 36 MRSA §5219-S, as amended by PL 2003, c. 20, Pt. GG, § I, IS 
repealed and the following enacted in its place: 
§5219-S. Earned income credit 
1. Resident taxpayer. A resident individual is allowed a credit against the tax 
otherwise due under this Part in the amount of 5% of the federal earned income credit for 
the same taxable year. 
2. Nonresident taxpayer. A nonresident individual is allowed a credit against the 
tax otherwise due under this Part in the amount of 5% of the federal earned income credit 
for the same taxable year multiplied by the ratio of the individual's Maine adjusted gross 
income, as defined in section 5102, subsection l-C, paragraph 8, to the individual's entire 
federal adjusted gross income, as modified by section 5122. 
3. Part-year resident taxpayer. An individual who files a return as a part-year 
resident in accordance with section 5224-A is allowed a credit against the tax otherwise 
due under this Part in the amount of 5% of the federal earned income credit for the same 
taxable year multiplied by a ratio, the numerator of which is the individual's Maine 
adjusted gross income as defined in section 5102, subsection I-C, paragraph A for that 
portion of the taxable year during which the individual was a resident plus the individual's 
Maine adjusted gross income as defined in section 5102, subsection I-C, paragraph 8 for 
that portion of the taxable year during which the individual was a nonresident and the 
denominator of which is the individual's entire federal adjusted gross income, as modified 
by section 5122. 
4. Limitation. The credit allowed by this section may not reduce the Maine income 
tax to less than zero. 
Sec. 30. 36 MRSA §5219-BB is enacted to read: 
§5219-BB. Community wind power generator credit 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following tenns have the following meanings. 
A. "Commission" means the Public Utilities Commission. 
B. 
"Community wind power generation facility" means an electricity-generating 
facility at anyone site with an instantaneous generating nameplate capacity of not 
more than 10 megawatts that is powered entirely by wind energy. 
C. "Payroll" means the total amount paid in this State during the tax period by the 
taxpayer for compensation, including wages, pretax employee contributions made to 
a benefit package and employer contributions made to an employee benefit package. 
D. 
"Property value" means the average value of the taxpayer's real and tangible 
personal property that is owned or rented and used during the tax period. Property 
owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is 
valued at 8 times the net annual rental rate. The net annual rental rate is the annual 
rental rate paid by the taxpayer. 
E. 
"Qualified community wind power generator" means a person that has been 
certified as a community wind power generator by the commission pursuant to Title 
35-A, section 3403, subsection 3. 
2. 
Credit. 
A taxpayer that is a qualified community wind power generator is 
allowed a credit against the tax imposed by this Part equal to 100% of the tax otherwise 
due under this Part that is attributable to ownership of a community wind power 
generation facility in this State. The amount of the tax attributable to ownership of a 
community wind power generation facility in this State is calculated by an 
apportionment. The apportionment is determined by multiplying a fraction, the numerator 
of which is the property value plus the payroll for the taxable year attributed to ownership 
of a community wind power generation facility in this State and the denominator of 
which is the statewide property value plus payroll for the taxable year of the taxpayer, by 
the total tax otherwise due under this Part from the qualified community wind power 
generator. The credit is available for the first taxable year that begins after the 
commencement of operation of a community wind power generation facility in this State 
and prior to the tax year beginning on or after January I, 2008. 
If the qualified community wind power generator is a taxable corporation that is a 
member of an affiliated group engaged in a unitary business, the property value and 
payroll in the State of the unitary affiliated group must be included in the apportionment 
fraction. The resulting fraction must be multiplied by the total tax otherwise due under 
this Part of the qualified community wind power generator and the affiliated group 
engaged in the unitary business. 
If the apportionment provisions of this subsection do not fairly reflect the amount of the 
credit attributable to the taxpayer's ownership of a community wind power generation 
facility in this State, the taxpayer may petition for, or the State Tax Assessor may require, 
in respect to all or any part of the taxpayer's business activity, the employment of another 
reasonable method to effectuate an equitable apportionment of the credit. 
3. 
Qualification. The credit allowed under this section is available only to a 
qualified community wind power generator certified by the commission prior to January 
1, 2008. 
4. Termination of credit. The credit provided in this section is available only for 
tax years beginning on or after January 1, 2006 but before January 1, 2008. 
Sec. 31. 36 MRSA §5245 is enacted to read: 
§5245. Amended returns 
1. Amended return required. EvelY partnership or S corporation that is required 
by section 5241 to file a return shall file an amended Maine return whenever the 
partnership or S corporation files an amended federal return affecting its net income 
under this Part or the amount of the distributive share of any partner or shareholder under 
this Part, whenever the United States Internal Revenue Service changes or corrects any 
item affecting the taxpayer's net income under this Part or the amount of the distributive 
share of any partner or shareholder under this Part or whenever for any reason there is a 
change or correction affecting the taxpayer's net income under this Part or the amount of 
the distributive share of any partner or shareholder under this Part. The amended Maine 
return must be filed within 90 days of the final determination of the change or correction 
or the filing of the federal amended return. 
2. Contents of amended return. The amended Maine return must indicate the 
change or correction and the reason for that change or correction. The amended return 
constitutes an admission as to the correctness of the change unless the taxpayer includes 
with the return a written explanation of the reason the change or correction is erroneous. 
If the taxpayer files an amended federal return, a copy of the amended federal return must 
be attached to the amended Maine return. The State Tax Assessor may require additional 
information to be filed with the amended Maine return. The assessor may prescribe 
exceptions to the requirements of this section. 
3. Notice of change or correction. A claim for credit or refund arising from an 
amended return filed pursuant to this section may not be made by a partner or shareholder 
of the partnership or S corporation unless the amended return is filed by the partnership 
or S corporation within 3 years from the time the original return was filed. For purposes 
of this subsection, any return filed before the last day prescribed for the filing of a return 
is considered as filed on that last day. 
Sec. 32. 36 MRSA §6664, as amended by PL 2005, c. 622, §31 and affected by 
§34, is repealed. 
Sec. 33. 36 MRSA §6902, suh-§2, as enacted by PL 2005, c. 519, Pt. GG, §3, is 
amended to read: 
2. 
Procedure for reimbursement. 
OR or before the 15th day of the mORth 
immediately Within 6 weeks following receipt of a tax reimbursement and credit 
certificate pursuant to Title 5, section 13090-L, subsection 4, a media production 
company shall report to the State Tax Assessor aRd to the DepartmeRt of EeoRomie aRd 
Comml:1Rity De'lelopmeRt that portion of certified production wages paid during the 
project period, together with any additional information the assessor may reasonably 
require. The assessor shall repeFt certify to the commissioner the reimbursement amount 
to which a media production company is entitled. The commissioner shall deposit the 
reported amounts OR or before JI:1Re 30th of each year certified by the assessor in a media 
production reimbursement account established, maintained and administered by the 
commissioner and shall pay the reported those amounts to each certified media 
production company OR or before JI:1I)' 31 st of each year within 90 days of the receipt by 
the assessor of the media production company's report. 
Sec. 34. Application. That section of this Act that repeals and replaces the Maine 
Revised Statutes, Title 36, section 5219-S applies to tax years beginning on or after 
January 1, 2008. 
Sec. 35. Retroactivity. That section of this Act that amends the Maine Revised 
Statutes, Title 30-A, section 5223, subsection 3 applies retroactively to August 23, 2006. 
Those sections of this Act that amend Title 35-A, section 3402 and enact Title 35-A, 
section 3403, subsection 3 apply retroactively to August 23, 2006. Those sections of this 
Act that amend Title 36, section 1760, subsection 89 and Title 36, section 2017 apply 
retroactively to August 23, 2006. That section of this Act that enacts Title 36, section 
5219-BB applies retroactively to August 23,2006. Those sections of this Act that amend 
Title 36, section 4062, subsection 2; enact section 4062, subsection 8-A; and repeal 
section 4062, subsection 8 and section 4071 are effective retroactively to May 1, 2007. 
SUMMARY 
This bill amends statutes that affect administration of sales tax exemption and refund 
provisions and income tax credit provisions related to the Maine Wind Energy Act. 
It provides that the penalties generally applicable to taxes imposed under the Maine 
Revised Statutes, Title 36 apply to the state tax on telecommunications personal property. 
It allows the Department of Administrative and Financial Services, Bureau of 
Revenue Services to share otherwise confidential information with the Department of 
Economic and Community Development to the extent necessary for the proper 
administration of the Maine Employment Tax Increment Financing Program, the media 
production credit and the media production reimbursement. 
It authorizes the State Tax Assessor to require electronic filing and payment of 
Competitive Skills Scholarship Fund contributions. 
It amends the state tax on telecommunications personal property to establish 
mandatory reporting requirements and to clarify the penalties that may be imposed for 
failure to file returns and pay the tax. 
It authorizes the State Tax Assessor to set off against revenues received credit card 
fees incurred by the assessor in connection with the collection of excise taxes in the 
unorganized territory. 
It clarifies the administration of the sales tax exemption for and the reimbursement 
provisions of the Maine Wind Energy Act. 
It imposes the requirement that if an internal combustion engine fuel distributor 
includes the excise tax on internal combustion engine fuel on a customer's bill it must be 
shown as a separate line item and identified as "Maine gasoline tax." 
It imposes the requirement that if a special fuel supplier or retailer includes the excise 
tax on special fuel on a customer's bill it must be shown as a separate line item and 
identified as "Maine special fuel tax." 
It establishes a credit against the tax on a resident decedent's estate for taxes paid to 
0 
another jurisdiction on certain real or tangible property located in the other jurisdiction 
that is also taxed by Maine. 
It makes specific the requirement that an amended Maine estate tax return must be 
filed if the United States Internal Revenue Service makes changes or if additional assets 
are discovered. 
It clarifies that the amount of earned income credit is prorated for nonresidents and 
part-year residents. 
It changes the community wind power generator credit by adding definitions and 
providing for apportionment of the credit. 
It establishes a requirement for partnerships and S corporations to file amended 
information returns in certain circumstances. 
It eliminates a requirement that the State Tax Assessor report to the Legislature 
certain information regarding applicants for reimbursement under the BETR program. 
The purpose of the report is to identify the extent of overlap between reimbursement for 
property taxes on personal property under the BETR program and under a tax increment 
financing agreement. This "double-dipping" has now been eliminated for new property. 
It eliminates a requirement that information provided to the State Tax Assessor in 
connection with a media production tax reimbursement claim must also be provided by 
the applicant to the Department of Economic and Community Development and changes 
the reimbursement period to 90 days from the date the assessor receives the information. 
It provides the State Tax Assessor with explicit statutory authority to use sampling 
techniques in conducting audits. 
It makes the sales and use tax laws consistent with administrative practice regarding 
the treatment of exempt sales for resale and the issuance and use of resale certificates. 
It provides that the State Tax Assessor has the authority to determine the Maine 
taxable estate and the value of the estate for estate tax purposes.