An Act To Create a Tax Break for Families That Make Less Than $25,000 Annually
Maine Legislature, Session 123, LD 0881
Committee: Taxation
Sponsors: SNOWE-MELLO, DOW, NASS, PLOWMAN
Amends: 36 MRSA §5111, 36 MRSA §5403

Legislative Document 
No. 881 
S.P.274 
February 27, 2007 
An Act To Create a Tax Break for Families That Make Less Than 
$25,000 Annually 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator SNOWE-MELLO of Androscoggin. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: DOW of Lincoln, NASS of York, PLOWMAN of Penobscot. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 36 MRSA §S111, sub-§l-B, as enacted by PL 1999, c. 731, Pt. T, §3, is 
amended to read: 
I-B. Single individuals and married persons filing separate returns; tax years 
2002 to 2006. For tax years beginning on or after January 1, 2002 but before January 1, 
2007, for single individuals and married persons filing separate returns: 
If Maine Taxable income is: 
Less than $4,200 
At least $4,200 but less than $8,350 
At least $8,350 but less than $16,700 
$16,700 or more 
The tax is: 
2% of the Maine taxable income 
$84 plus 4.5% of the excess over $4,200 
$271 plus 7% of the excess over $8,350 
$856 plus 8.5% of the excess over 
$16,700 
Sec. 2. 36 MRSA §S111, sub-§l-C is enacted to read: 
l-C. Single individuals and married persons filing separate returns; tax years 
beginning 2007. 
For tax years beginning on or after January 1, 2007, for single 
individuals and married persons filing separate returns: 
If Maine Taxable income is: 
The tax is: 
Less than $10,800 
2% of the Maine taxable income 
At least $10,800 but less than $15,500 
$204 plus 4.5% of the excess over 
$10,800 
At least $15,500 but less than $25,000 
$25,000 or more 
$443 plus 7% of the excess over $15,500 
$1, 1 08 plus 8.5% of the excess over 
$25,000 
Sec. 3. 36 MRSA §Sl11, sub-§2-B, as enacted by PL 1999, c. 731, Pt. T, §5, is 
amended to read: 
2-B. Heads of households; tax years 2002 to 2006. For tax years beginning on or 
after January 1, 2002 but before January 1, 2007, for unmarried individuals or legally 
separated individuals who qualify as heads of households: 
If Maine Taxable income is: 
Less than $6,300 
At least $6,300 but less than $12,500 
At least $12,500 but less than $25,050 
$25,050 or more 
The tax is: 
2% of the Maine taxable income 
$126 plus 4.5% of the excess over $6,300 
$405 plus 7% of the excess over $12,500 
$1,284 plus 8.5% of the excess over 
$25,050 
Sec. 4. 36 MRSA §S111, sub-§2-C is enacted to read: 
Page I - 123LR0738(OI)-1 
2-C. Heads of households; tax years beginning 2007. For tax years beginning on 
or after January l, 2007, for unmarried individuals or legally separated individuals who 
qualify as heads of households: 
If Maine Taxable income is: 
Less than $13,200 
At least $13,200 but less than $20,250 
At least $20,250 but less than $34,500 
$34,500 or more 
The tax is: 
2% of the Maine taxable income 
$264 plus 4.5% of the excess over 
$13,200 
$581 plus 7% of the excess over $20,250 
$l,579 plus 8.5% of the excess over 
$34,500 
Sec. 5. 36 MRSA §5111, sub-§3-B, as enacted by PL 1999, c. 731, Pt. T, §7, is 
amended to read: 
3-B. Individuals filing married joint return or surviving spouses; tax years 2002 
to 2006. For tax years beginning on or after January 1,2002 but before January l, 2007, 
for individuals filing married joint returns or surviving spouses permitted to file a joint 
return: 
If Maine Taxable income is: 
Less than $8,400 
At least $8,400 but less than $16,700 
At least $16,700 but less than $33,400 
$33,400 or more 
The tax is: 
2% of the Maine taxable income 
$168 plus 4.5% of the excess over $8,400 
$542 plus 7% of the excess over $16,700 
$1,711 plus 8.5% of the excess over 
$33,400 
Sec. 6. 36 MRSA §5111, sub-§3-C is enacted to read: 
3-C. Individuals filing married joint return or surviving spouses; tax years 
beginning 2007. For tax years beginning on or after January 1, 2007, for individuals 
filing married joint returns or surviving spouses permitted to file a joint return: 
If Maine Taxable income is: 
The tax is: 
Less than $15,500 
2% of the Maine taxable income 
At least $15,500 but less than $25,000 
$310 plus 4.5% of the excess over 
$15,500 
At least $25,000 but less than $44,000 
$44,000 or more 
$738 plus 7% of the excess over $25,000 
$2,068 plus 8.5% of the excess over 
$44,000 
Sec. 7. 36 MRSA §5403, as repealed and replaced by PL 1999, c. 731, Pt. T, § 1 0 
and affected by § 11, is amended to read: 
§5403. Annual adjustments for inflation 
Beginning in ~ 
2008, and each subsequent calendar year thereafter, on or about 
September 15th, the State Tax Assessor shall multiply the cost-of-living adjustment for 
taxable years beginning in the succeeding calendar year by the dollar amounts of the tax 
rate tables specified in section 5111, subsections 1 B, 2 Band 3 B I-C, 2-C and 3-C. If 
the dollar amounts of each rate bracket, adjusted by application of the cost-of-living 
adjustment, are not multiples of $50, any increase must be rounded to the next lowest 
multiple of $50. If the cost-of-living adjustment for any taxable year is 1.000 or less, no 
adj ustment may be made for that taxable year in the dollar bracket amounts of the tax rate 
tables. 
The assessor shall incorporate such changes into the income tax forms, 
II 
instructions and withholding tables for the taxable year. 
Sec. 8. Application. This Act applies to tax years beginning on or after January I, 
2007. 
SUMMARY 
This bill increases the income tax rate schedule bracket amounts, beginning with tax 
year 2007, by $6,050. The effect of this bill is to increase the amount of taxable income 
that is taxed at rates below the top rate of 8.5%.