An Act To Cut Taxes on Maine Residents by over $140,000,000
Maine Legislature, Session 123, LD 1925
Senate Amendment SA_C_S324 (Senate)
Amends: 5 MRSA §1518-A, 36 MRSA §5111

SENATE AMENDMENT "c." to H.P. 1362, L.D. 1925, Bill, "An Act To Cut 
Taxes on Maine Residents by over $140,000,000" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Provide for Decreases in Income Taxes' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §1518-A, sub-§l, as enacted by PL 2005, c. 2, Pt. A, §4 and 
IS 
affected by § 14, is amended to read: 
1. Tax Relief Fund for Maine Residents. There is created the Tax Relief Fund for 
Maine Residents, referred to in this section as "the fund," which must be used to provide 
tax relief to residents of the State as provided in subsection 3. The fund consists of all 
resources transferred to the fund under section 1536 and other resources made available 
to the fund. 
Sec. 2. 5 MRSA §1518-A, sub-§3 is enacted to read: 
3. Income tax reduction. At the close of each fiscal year, the State Controller shall 
certify to the State Tax Assessor the amount transferred to the fund and available for tax 
relief. Using 50% of the funds available in the fund, the State Tax Assessor shall 
calculate a proportional decrease in the rates of income tax imposed pursuant to Title 36, 
section 5111, subsections I-B, 2-B and 3-B and, no later than September 15th annually, 
submit legislation to the joint standing committee of the Legislature having jurisdiction 
over taxation matters that includes decreased rates and other necessary changes. 
The rates apply only to tax years beginning in the immediately succeeding calendar year. 
If there are insufficient funds to decrease the income tax rates by at least one quarter of a 
percentage point each, then the State Tax Assessor may not make the adjustments 
required pursuant to this subsection. 
Sec. 3. 36 MRSA §5111, first~, as amended by PL 1999, c. 731, Pt. T, §1, is 
further amended to read: 
SENATE AMENDMENT 
,~, 
~",. 
SENATE AMENDMENT "C .. to H.P. 1362, L.D.1925 
A tax is imposed for each taxable year beginning on or after January 1,2000, on the 
Maine taxable income of every resident individual of this State. The amount of the tax is 
determined as provided in this section and Title 5, section 1518-A, subsection 3. 
Sec. 4. PL 2007, c. 240, Pt. MM, § 1 is amended to read: 
Sec. MM -1. Transfer from unappropriated surplus at close of fiscal year 
2007-08 to the Department of Health and Human Services, Medical Care -
Payments to Providers account. Notwithstanding any other provision of law, at the 
close of fiscal year 2007-08 the State Controller shall transfer up to $107,500,000 from 
the unappropriated surplus of the General Fund to the Department of Health and Human 
Services, Medical Care - Paymeat Payments to Providers account in the General Fund 
after all required deductions of appropriations, budgeted financial commitments and 
adjustments considered necessary by the State Controller have been made and as the first 
priority after the transfers required pursuant to the Maine Revised Statutes, Title 5, 
sections 1507 and 1511 and after 50% of the remainder is transferred to the Tax Relief 
Fund for Maine Residents established in Title 5, section 1518-A and before the transfer 
required pursuant to the Maine Revised Statutes, Title 5, section 1536. 
Sec. 5. Application. The adjustment required pursuant to the Maine Revised 
Statutes, Title 5, section 1518-A, subsection 3 applies to tax years beginning on or after 
January 1,2009.' 
SUMMARY 
This amendment strikes the bill and instead specifies how the Tax Relief Fund for 
Maine Residents is to be used to provide tax relief. It requires the State Tax Assessor to 
annually calculate the amount that income tax rates can be proportionally reduced using 
50% of the funds available in the Tax Relief Fund for Maine Residents. The new rates 
would be submitted to the Legislature for enactment and would be applicable for the 
calendar year immediately succeeding the calculation only. If insufficient funds exist to 
decrease the tax rates by at least one quarter of a percentage point, then no adjustment is 
made for that year. 
This amendment amends the budget bill for the 2008-2009 biennium to specify that 
the so-called "cascade" must include, as the priority immediately before the transfer from 
the unappropriated surplus of the General Fund to the Medical Care - Payments to 
Providers, General Fund account a transfer to the Tax Relief Fund for Maine Residents. 
FISCAL NOTE REQUIRED 
SPONSORED BY: ----,,,c....+~-.::...-F--+--------
(Senator COURT 
COUNTY: York 
SENATE AMENDMENT 
Approved: 06/14/07 
~a~ 
LD 1925 
LR 2657(12) 
An Act To Cut Taxes on Maine Residents by over $140,000,000 
Net Cost (Savings) 
General Fund 
~ppropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note for Senate Amendment "e " 
Sponsor: Sen. Courtney of York 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
Projections 
2010-11 
$368,018 
$214,002 
($21,193,643) 
($26,553,672) 
($1,095,164) 
($33,203,556) 
($33,430,184) 
($34,039,339) 
$0 
($1,001,496) 
($3,101,329) 
($3,078,489) 
($1,463,182) 
($33,417,558) 
($12,236,541) 
$1,278,828 
$57,295 
($2,030,631) 
($7,485,667) 
($1,965,563) 
This amendment increases the cost of the bill by $368,018 in fiscal year 2007-08 and $214,002 in fiscal year 2008-09. 
LR2657(l2) - Fiscal Note - Page 1 of 1