An Act To Make Minor Substantive Changes to the Tax Laws
Maine Legislature, Session 123, LD 1504
Committee Amendment CA_A_H550 (House)
Amends: 36 MRSA §193, 36 MRSA §1752

COMMITTEE AMENDMENT" A " to H.P. 1054, L.D. 1504, Bill, "An Act To 
Make Minor Substantive Changes to the Tax Laws" 
Amend the bill by striking out all of sections 6 and 7 (page 3, lines 8 to 39 and page 
4, lines 1 to 4 in L.D.) and inserting the following: 
'Sec. 6. 36 MRSA §193, as repealed and replaced by PL 2005, c. 332, §1O and 
affected by §30, is amended to read: 
§193. Returns; declaration covering perjury; submission of returns and funds by 
electronic means 
1. Declaration required. Any return, report or other document required to be filed 
pursuant to this Title must contain a declaration, in a form prescribed by the State Tax 
Assessor, that the statements contained in the return, report or other document are true 
and are made under the penalties of perjury. When a tax return is filed electronically by a 
taxpayer or with the taxpayer's permission, the filing of that return constitutes a sworn 
statement by the taxpayer, made under the penalties of perjury, that the tax liability 
shown on the return is correct. 
2. Electronic filing. The State Tax Assessor, with the approval of the Commissioner 
of Administrative and Financial Services may allow or, as provided iH this seBseetion, 
require adopt a rule allowing or requiring the filing of a return or document by electronic 
data submission or b~' telephone. The rule must establish thresholds or phase-in periods 
to assist taxpayers and preparers in complying with any electronic data submission 
requirement. 
A. 1ft Unless otherwise provided by a rule adopted pursuant to this subsection, in the 
case of an employer that submits returns in accordance with section 5253 with respect 
to 100 or more employees, whether the returns are submitted directly by the employer 
or by a 3rd party on behalf of the employer, the assessor may require that the returns 
be filed by electronic data submission. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" It" to H.P. 1054, L.D. 1504 
B. .ffi 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 7 for 100 or more 
employers, the assessor may require that the returns be filed by electronic data 
submission. 
3. 
Payment by electronic funds transfer. The State Tax Assessor, with the 
approval of the Commissioner of Administrative and Financial Services, may allow or, as 
pro'lieee in this sHeseetion, reqHire 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 unemployment insurance contributions required to be paid to the State pursuant 
to Title 26. 
A. .ffi 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. .ffi 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 unemployment 
insurance contributions pursuant to Title 26, chapter 13, subchapter 7 by electronic 
funds transfer. 
4. 
Adoption of rules. The State Tai( Assessor ma·), aeopt rules to establish 
proeeeHreS neeessary to implement the provisions of this seetion ane shall aeopt rules in 
the event that pa)'Hlent of taxes by eleetronie mnes transfer is mandated. Rules adopted 
pursuant to this sHeseetien section are routine technical rules for the purposes of Title 5, 
chapter 375, subchapter 2-A.' 
Amend the bill by striking out all of sections 10 to 12 (page 6, lines 1 to 43 and page 
7, lines 1 to 13 in L.D.) and inserting the following: 
'Sec. 10. 36 MRS A §693, suh-§1, as enacted by PL 2005, c. 623, §l, is amended 
to read: 
1. Reporting. On or before May 1 st of each year, a taxpayer claiming an exemption 
under this section shall file a report with the assessor of the taxing jurisdiction in which 
the property would otherwise be subject to taxation on April 1st of that year. The report 
must identify the property for which exemption is claimed that would otherwise be 
subject to taxation on April 1 st of that year and must be made on a form prescribed by the 
State Tax Assessor or substitute form approved by the State Tax Assessor. The State Tax 
Assessor shall furnish copies of the form to each municipality in the State and the form 
must be made available to taxpayers prior to April 1st annually. The assessor of the 
taxing jurisdiction may require the taxpayer to sign the form and make oath to its truth. 
Upon written request, the assessor may at any time grant extensions of time to file the 
report. Failure If a taxpayer fails to file the report in a timely manner, including any 
extensions of time, disEtHalifies the taxpayer may not obtain an exemption for that 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "If" to H.P. 1054, ~.D.1504 
property iB't'ol'lea from e~lem}')tioA under this subchapter for that tax year. The assessor 
of the taxing jurisdiction may require in writing that a taxpayer answer in writing all 
reasonable inquiries as to the property for which exemption is requested. A taxpayer has 
days from receipt of such an inquiry to respond. Upon written request, a taxpayer is 
entitled to a 30-day extension to respond to the inquiry and the assessor may at any time 
grant additional extensions upon written request. The answer to any such inquiry is not 
binding on the assessor. 
All notices and requests provided pursuant to this subsection must be made by personal 
delivery or certified mail and must conspicuously state the consequences of the taxpayer's 
failure to respond to the notice or request in a timely manner. 
If an exemption has already been accepted and the State Tax Assessor subsequently 
detennines that the property is not entitled to exemption, a supplemental assessment must 
be made within 3 years of the original assessment date with respect to the property in 
compliance with section 713, without regard to the limitations contained in that section 
regarding the justification necessary for a supplemental assessment. 
Sec. 11. 36 MRSA §1752, sub-§ll, ~A, as amended by PL 2005, c. 218, §14, is 
further amended to read: 
A. 
"Retail sale" includes: 
(1) Conditional sales, installment lease sales and any other transfer of tangible 
personal property when the title is retained as security for the payment of the 
purchase price and is intended to be transferred later; and 
(2) Sale of products for internal human consumption to a person for resale 
through 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: 
(i) 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 
(ii) The sale is to a person that purchases the assets for transfer to an affiliate, 
directly or through a series of transactions among affiliated entities, for 
resale, lease or rental in the ordinary course of business. 
For purposes of this subparagraph, "affiliate" or "affiliated" includes both direct 
and indirect affiliates.' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 1054, L.D. 1504 
Amend the biJI by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment expands the authority of the State Tax Assessor, with the approval 
of the Commissioner of Administrative and Financial Services, to adopt a rule requiring 
the filing of returns or other documents and the payment of tax obligations, by electronic 
data submission. The phrase "or by telephone" is deleted as that term is included within 
the meaning of the phrase "electronic data submission." 
This amendment provides additional clarification regarding the timeliness of requests 
for exemption under the business equipment tax exemption laws. 
This amendment also provides additional clarification regarding the sales tax 
treatment of the sale of assets of a business in connection with the sale or liquidation of 
the business. 
FISCAL NOTE REQU1RED 
(See Attached) 
COMMITTEE AMENDMENT 
Approved: 06/07/07 :?#'ae 
LD 1504 
LR 697(02) 
An Act To Make Minor Substantive Changes to the Tax Laws 
Fiscal Note for Bill as Amended by Committee Amendment" A " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
LR0697(02) - Fiscal Note - Page 1 of 1