Maine Legislature, Session 123, LD 1819
Committee Amendment CA_B-HA_A_H625 (House)

HOUSE AMENDMENT "It" to COMMITTEE AMENDMENT "B" to S.P. 648, 
L.D. 1819, "RESOLUTION, Proposing an Amendment to the Constitution of Maine To 
Restrict Tax Increases" 
Amend the amendment by striking out everything after the first indented paragraph 
after the title and inserting the following: 
"RESOLUTION, Proposing an Amendment to the Constitution of Maine To 
Eliminate the Income Tax' 
Amend the resolution by striking out all of Parts A, Band C and inserting the 
following: 
'Constitution, Art. IX, §§24 and 25 are enacted to read: 
Section 24. Income tax rate reduction. Taxes on personal income in this State may 
not exceed the following. 
1. Maximum rates. Maximum income tax rates on individuals may not exceed the 
following amounts. 
A. For income tax years beginning in 2008, the maximum rate oftax is 6%. 
B. For income tax years beginning in 2009, the maximum rate of tax is 5%. 
C. For income tax years beginning in 2010, the maximum rate of tax is 4%. 
D. For income tax years beginning in 2011, the maximum rate oftax is 3%. 
E. For income tax years beginning in 2012. the maximum rate of tax is 2%. 
F. For income tax years beginning in 2013, the maximum rate of tax is 1 %. 
G. For income tax years beginning in 2014, the maximum rate of tax is 0%. 
2. 
Exemption amount. 
In addition to any other exemptions and deductions 
permitted by law, individuals filing married joint income tax returns are entitled to the 
following exemptions. Persons filing as single taxpayers are entitled to exemptions equal 
to 50% of the following amounts. Persons filing as heads of household are entitled to 
exemptions equal to 75% of the following amounts. 
A. For income tax years beginning in 2008, the exemption amount is $8,000. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ,,~" to COMMITTEE AMENDMENT "8" to S.P. 648, L.D. 1819 
B. For income tax years beginning in 2009, the exemption amount is $10,000. 
C. For income tax years beginning in 2010, the exemption amount is $12,000. 
D. For income tax years beginning in 2011, the exemption amount is $16,000. 
3. 
Implementation. 
The Legislature shall enact legislation to implement this 
section. 
Section 25. Sales tax rebate. A Maine resident is entitled to a rebate of $100 per 
year in 2008 and 2009 for sales tax paid by that resident in those years. 
; and be it further 
Constitutional referendum procedure; form of question; effective date. 
Resolved: That the municipal officers of this State shall notify the inhabitants of their 
respective cities, towns and plantations to meet, in the manner prescribed by law for 
holding a statewide election, at a statewide election on the Tuesday following the first 
Monday of November following the passage of this resolution, to vote upon the 
ratification of the amendment proposed in this resolution by voting upon the following 
question: 
"Do you favor amending the Constitution of Maine to lower and eliminate the Maine 
individual income tax over a 7-year period and provide a sales tax rebate in 2008 and 
2009?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within the corresponding 
square below the word "Yes" or "No." The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature. The Governor shall 
review the returns and, if it appears that a majority of the legal votes are cast in favor of 
the amendment, the Governor shall proclaim that fact without delay and the amendment 
becomes part of the Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. Resolved: 
That the Secretary of State shall prepare and furnish to each city, town and plantation 
all ballots, returns and copies of this resolution necessary to carry out the purposes of this 
referendum.' , 
SUMMARY 
This constitutional resolution establishes a timetable for phasing in an elimination of 
the Maine individual income tax over a period of 7 years. It also phases in an income tax 
exemption of up to $16,000. It provid 's a sales x rebate of $1 00 per person per year for 
sales taxes paid by Maine re . dents i 2008 
9. 
SPONSOREDBY:~~~~~~~ 
__________ _ 
(Representative VA 
TOWN: Durham 
HOUSE AMENDMENT