An Act To Recouple Maine Estate Tax with Federal Estate Tax
Maine Legislature, Session 123, LD 1556
Committee Amendment CA_A_H633 (House)
Amends: 36 MRSA §4062, 36 MRSA §4063, 36 MRSA §4068

COMMITTEE AMENDMENT" A " to H.P. 1081, L.D. 1556, Bill, "An Act To 
Recouple Maine Estate Tax with Federal Estate Tax" 
Amend the bill by striking out all of sections 1 and 2 and inserting the following: 
'Sec. 1. 36 MRSA §4062, sub-§I-A, ,A, as repealed and replaced by PL 2005, 
c. 12, Pt. N, §I and affected by §4, is amended to read: 
A. For the estates of decedents dying after December 31, 2002 and before January 1, 
2008, "federal credit" means the maximum credit for state death taxes determined 
under the Code, Section 2011 as of December 31,2002 exclusive of the reduction of 
the maximum credit contained in the Code, Section 20I1(b)(2); the period of 
limitations under the Code, Section 20 11 (c); and the termination provision contained 
in the Code, Section 2011(f). The federal taxable estate is to be determined using the 
applicable Code as of the date of the decedent's death, except that: 
(1) The state death tax deduction contained in the Code, Section 2058 is to be 
disregarded; 
(2) The unified credit is to be determined under the Code, Section 2010 as of 
December 31, 2000; 
(3) For the estates of decedents dying after December 31; 2004,;hut before 
January 1, 2008 .. the federal taxable estate must be decreased by an aUlount equal 
to the value of Maine qualified terminable interest property in the estate of the 
decedent; and 
(4) For the estates of decedents dying after December 31, 2004, the federal 
taxable estate must be increased by an amount equal to the value of Maine 
elective property in respect of the decedent; aDd 
Sec. 2. 36 MRSA §4062, sub-§I-A, 'A-l is enacted to read: 
A-I. For the estates of decedents dying after December 31, 2007, "federal credit" 
means the maximum credit for state death taxes determined under the Code, Section 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "fJ" to H.P. 1081, L.D. 1556 
2011 as of December 31, 2007 exclusive of the reduction of the maximum credit 
contained in the Code, Section 201l(b)(2); the period of limitations under the Code, 
Section 2011(c); and the termination provision contained in the Code, Section 
2011 (0. The federal taxable estate is to be determined using the applicable Code as 
of the date of the decedent's death, except that the state death tax deduction contained 
in the Code, Section 2058 is to be disregarded and an amount equal to the value of 
Maine elective property in respect to the decedent must be added; and' 
Amend the bill by inserting after section 3 the following: 
'Sec. 4. 36 MRSA §4062, sub-§8, as enacted by PL 2005, c. 622, § 17 and 
affected by §33, is amended to read: 
8. Value. When determining value for purposes of this chapter, "value" means, with 
respect to an estate (' to property included in an t;state, iHeh:lsiHg MaiHe qHalifies 
terminable iHterest property: 
A. 
For estates of decedents that incur a federal estate tax, the value as finally 
determined for federal estate tax purposes unless the State Tax Assessor has 
determined a different value in accordance with the Code; or 
B. 
For estates of decedents dying after December 31, 2002, but before January 1, 
2008, that do not incur a federal estate tax, the value as determined by the State Tax 
Assessor in accordance with the Code as if the estate had incurred a federal estate tax. 
Sec. 5. 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 
that portion of the decedent's ;ederal gross estate that consists of real and tangible 
personal property located in the State plus all intangible personal property and the 
denominator of which is the decedent's federal gross est2~e. For purposes of this section, 
"federal gross estate" means the decedent's federal gr 
estate as modified by MaiHe 
qualifies terminable interest property aHd Maine elective property. 
Sec. 6. 36 MRSA §4068, sub-§2, ~, as enacted by PL 2005, c. 218, §43, is 
amended to read: 
B. 
The federal gross estate, increased by the amount of adjusted taxable gifts made 
by the decedent after December 31, 1976 and by the aggregate amount of any specific 
gift tax exemption under former Code, Section 2521 used by the decedent after 
September 8, 1976 exceed the exclusion and related unified credit amounts speeified 
in seetion 4062, subseetioH 1 A.' 
Amend the bill in section 5 in the 2nd line (page 2, line 5 in L.D.) by striking out the 
following: "2007" and inserting the following: '2008' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A "to H.P. 1081, L.D.1556 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment changes the application date of the bill from deaths occurring on or 
after January 1, 2007 to deaths occurring on or after January 1, 2008. It also makes 
technical changes to the estate tax law necessary to accomplish the intent of the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Detail and Notes 
Approved: 11128/07 frae 
LD 1556 
LR 1104(02) 
An Act To Recouple Maine Estate Tax with Federal Estate Tax 
Fiscal Note for Bill as Amended by Committee Amendment "A " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
$0 
$20,623,786 
$31,152,282 
Projections 
2010-11 
$2,661,581 
$0 
($20,623,786) 
($31,152,282) 
($2,661,581) 
The changes to the Estate Tax will reduce General Fund revenue by an estimated $20,623,786 in fiscal year 2008-09. 
LRII04(02) - Fiscal Note - Page 1 of 1