An Act To Make Minor Substantive Changes to the Tax Laws
Maine Legislature, Session 123, LD 1504
Committee: Taxation
Sponsors: PERRY
Amends: 36 MRSA §182, 36 MRSA §187-B, 36 MRSA §653, 36 MRSA §691, 36 MRSA §693, 36 MRSA §1752, 36 MRSA §1760-C, 36 MRSA §2521-A, 36 MRSA §2551, 36 MRSA §4641-D, 36 MRSA §5122, 36 MRSA §5219-C, 36 MRSA §5251, 36 MRSA §5251-A, 36 MRSA §6651

Legislative Document 
No. 1504 
H.P.1054 
House of Representatives, March 19,2007 
An Act To Make Minor Substantive Changes to the Tax Laws 
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representati ve PIOTTI of Unity. 
Cosponsored by Senator PERRY of Penobscot. 
Printed on recycled paper 
17/~/J?·mu~ 
Mll..LICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRS A §5681, sub-§2, ~C, as amended by PL 2005, c. 2, Pt. G, § 1 
and affected by §2, is further amended to read: 
C. 
"Annual growth ceiling" for fiscal year 2005-06 means $100,000,000. For 
subsequent fiscal years, "annual growth ceiling" must be determined by the State Tax 
Assessor by September 1 st annually and means the annual growth ceiling for the 
previous fiscal year adjusted by the lower of the inerease percentage change for the 
previous fiscal year in the Consumer Price Index ef compared to the fiscal year 
immediately preceding the previous fiscal year and the inorease percentage change in 
receipts for the previous fiscal year from the taxes imposed under Title 36, Parts 3 
and 8 and Title 36, section 2552, subsection 1, paragraphs A to F and credited to the 
General Fund compared to the fiscal year immediately preceding the previous fiscal 
year. The annual growth ceiling may not be less than the annual growth ceiling for 
the previous year. 
Sec. 2. 36 MRSA §182, sub-§l, as enacted by PL 2001, c. 583, §8, is amended to 
read: 
1. Generally. The State Tax Assessor may, through the Attorney General, file an 
action in Superior Court applying for an order to enjoin from doing business any person 
who has: 
A. Failed to register with the ~ 
assessor when the person is required to register 
by any provision of Part 3 ef, chapter 358 or Part 5 or by any rule adopted pursuant to 
this Title, proyiEleEl tbat as long as the assessor has provided written notice and the 
person continues to fail to register 15 days after receiving notice from the assessor of 
such failure; 
B. Failed to file with the assessor any overdue return required by Part 3 ef, chapter 
or Part 5 within 15 days after receiving notice from the assessor of such failure; 
C. Failed to pay any tax required by Part 3 ef, chapter 358 or Part 5 when the tax is 
shown to be due on a return filed by that person, or that is otherwise conceded by that 
person to be due, or has been determined by the assessor to be due and that 
determination has become final; 
D. 
Knowingly filed a false return required by Part 3 6£, chapter 358 or Part 5; or 
E. Failed to deduct and withhold, or truthfully account for or pay over or make 
returns of, income taxes in violation of the provisions of chapter 827. 
Sec. 3. 36 MRSA §187-B, sub-§l-A is enacted to read: 
I-A. Failure to file information return. Any partnership or S corporation that fails 
to make and file an information return required by section 5241 and that has received 
from the assessor a formal demand that the return be filed is liable for one of the 
following penalties: 
Page I -123LR0697(Ol)-1 
A. If the return is filed within 30 days after the partnership or S corporation receives 
from the assessor a formal demand that the return be filed, the penalty is $100. The 
30-day period provided by this paragraph is extended for up to 120 days if the 
partnership or S corporation requests an extension in writing prior to the expiration of 
the 30-day period; or 
B. Except as provided in paragraph A, if the return is not filed within 30 days after 
the partnership or S corporation receives from the assessor a formal demand that the 
return be filed, the penalty is $500. 
Sec. 4. 36 MRS A §187-B, sub-§4-B is enacted to read: 
4-B. Excessive refund. A person who files a claim for refund or reimbursement 
under Part 5 that is the basis for the receipt of a refund or reimbursement that 
substantially exceeds the amount to which the person is legally entitled is liable for a 
penalty of $5 or 1 % of the excess amount, whichever is greater, for each month or 
fraction of a month during which the failure to repay that portion of the refund or 
reimbursement continues, to a maximum in the aggregate of $25 or 25% of the 
overpayment, whichever is greater. 
For purposes of this subsection, a refund or 
reimbursement substantially exceeds the amount to which the person is legally entitled if 
the amount of the refund or reimbursement exceeds the amount to which the person is 
legally entitled by more than 10% of the corrected amount or $1,000, whichever is 
greater. For purposes of this subsection, the amount by which a refund or reimbursement 
exceeds the amount to which the person is legally entitled and the excess amount that is 
subject to penalty under this subsection must be reduced by any portion of the excessive 
claim for which the person has substantial authority supporting its position. 
Sec. 5. 36 MRS A §187-B, sub-§7, as amended by PL 2005, c. 332, §5, is further 
amended to read: 
7. Reasonable cause. For reasonable cause, the State Tax Assessor shall waive or 
abate any penalty imposed by subsection 1; subsection I-A; subsection 2, paragraphs A 
tmd-B; subsections 4-A, 4-B, 5-A and 5-B; or by the terms of the International Fuel Tax 
Agreement. Reasonable cause includes, but is not limited to, the following: 
A. 
The failure to file or pay resulted directly from erroneous information provided 
by the Bureau of Revenue Services; 
B. 
The failure to file or pay resulted directly from the death or serious illness of the 
taxpayer or a member of the taxpayer's immediate family; 
C. 
The failure to file or pay resulted directly from a natural disaster; 
D. 
A return that was due monthly was filed and paid less than one month late and 
all of the taxpayer's returns and payments during the preceding 12 months were 
timely; 
E. 
A return that was due other than monthly was filed and paid less than one month 
late and all of the taxpayer's returns and payments during the preceding 3 years were 
timely; 
I 
F. 
The taxpayer has supplied substantial authority justifying the failure to file or 
pay; or 
G. 
The amount subject to a penalty imposed by subsections 1, 2 and 4-A; and 
subsection 5-A is de minimis when considered in relation to the amount otherwise 
properly paid, the reason for the failure to file or pay and the taxpayer's compliance 
history. 
The burden of establishing grounds for waiver or abatement is on the taxpayer. 
Sec. 6. 36 MRS A §193, sub-§2, as enacted by PL 2005, c. 332, § 10 and affected 
by §30, is amended to read: 
2. Electronic filing. The State Tax Assessor may allow or, as provided in this 
subsection, require the filing of a return or document by electronic data submission eF-by 
telephoae. 
A. In the case of an employer a person that withholds tax pursuant to section 5250 or 
5255-B and that submits returns in accordance with section 5253 with respect to +GO 
or more employees at a minimum the threshold number of payees as provided by 
paragraph E, whether the returns are submitted directly by the employer person or by 
a 3rd party on behalf ofthe employer person, the assessor may require that the returns 
be filed by electronic data submission. 
B. 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 
at a minimum the threshold number of employers as provided by paragraph E, the 
assessor may require that the returns be filed by electronic data submission. 
C. In the case of a person that prepared at a minimum the threshold number of 
returns as provided by paragraph E for compensation in the previous calendar year, 
the assessor may require that the returns be filed by electronic data submission. 
D. In the case of a person that is required pursuant to subsection 3 to make payment 
of any tax by electronic funds transfer, on or after January 1, 2009 the assessor may 
require that person to file returns associated with that tax by electronic data 
submission. 
E. In the case of returns that are required to be filed: 
(1) Before January 1, 2009, the threshold number of payees under paragraph A 
and of employers under paragraph B is 100, and the assessor may not require 
electronic filing with respect to other payees under paragraph A or for returns 
under paragraph C; 
(2) On or after January 1, 2009 but before January 1, 2010, the threshold number 
is 75; and 
(3) On or after January 1, 2010, the threshold number is 50. 
Sec. 7. 36 MRS A §193, sub-§3, ~A, as enacted by PL 2005, c. 332, § 10, is 
amended to read: 
A. In the case of a person that is liable for ~f-year 
pu1'5'l:iaffi-te 
section 5253 or for $400,000 $100,000 or more per year in payments ct eU,." f'j·tl:j-8f 
single tax type, the assessor may require payment or refund of that ~a' 
deL, 
j, 
funds transfer. 
Sec. 8. 36 MRSA §653, sub-§l, ~-1, as amended by PL 20C". c. 622, §4, is 
further amended to read: 
D-l. The estates up to the just value of $50,000, having a taxable situs in the place of 
residence, for specially adapted housing units, of veterans who served in the Armed 
Forces of the United States during any federally recognized war period, including the 
Korean Campaign, the Vietnam War anEl~ the Persian Gulf War and the periods from 
August 24, 1982 to July 31, 1984 and December 20, 1989 to January 31, 1990, or 
who were awarded the A'TIled Forces Expeditionary Medal, and who are paraplegic 
veterans within the meaning of 38 United States Code, Chapter 21, Section 210 1, and 
who received a grant from the United States Government for any such housing, or of 
the unremarried widows or widowers of 500fi those veterans. 
A veteran of the 
Vietnam War must have served on active duty for a period of more than 180 days, 
any part of which occurred after February 27,1961 and before May 8,1975 iH--the 
ease of a veteran who ser.'ed in the Republic of Vietnam during that period and after 
l\Ugust 4, 1964 and before May 7, 1975 in all other cases, unless the veteran died in 
service or was discharged for a service-connected disability after that date. "Vietnam 
War" means the period between August 5, 1964 and May 7, 1975 and the period 
beginning on February 28, 1961 and ending on May 7, 1978 in the ease of a veteran 
\vho served in the Republic of Vietnam during that period. "Persian Gulf War" 
means service on active duty on or after August -+ l, 1990 and before or on the date 
that the United States Government recognizes as the end of that war period. The 
exemption provided in this paragraph applies to the property of the veteran including 
property held in joint tenancy with a spouse or held in a revocable living trust for the 
benefit of that veteran. 
Sec. 9. 36 MRSA §691, sub-§l, -,rA, as enacted by PL 2005, c. 623, §1, is 
amended to read: 
A. "Eligible business equipment" means qualified property that, in the absence of 
this subchapter, would first be subject to assessment under this Part on or after April 
1, 2008. 
"Eligible business equipment" includes, without limitation, repair parts, 
replacement parts, replacement equipment, additions, accessions and accessories to 
other qualified business property that first became subject to assessment under this 
Part before April 1, 2008 if the part, addition, equipment, accession or accessory 
would, in the absence of this subchapter, first be subj ect to assessment under this Part 
on or after April 1, 2008. "Eligible business equipment" also includes inventory 
parts. 
"Eligible business equipment" does not include: 
(I) Office furniture, including, without limitation, tables, chairs, desks, 
bookcases, filing cabinets and modular office partitions; 
(2) Lamps and lighting fixtures used primarily for the purpose of providing 
general purpose office or worker lighting; 
(3) Property owned or used by an excluded person; 
(4) Telecommunications personal property subject to the tax imposed by section 
457; 
(5) Gambling machines or devices, including any device, machine, paraphernalia 
or equipment that is used or usable in the playing phases of any gambling activity 
as that tern1 is defined in Title 8, section 1001, subsection 15, whether that 
activity consists of gambling between persons or gambling by a person involving 
the playing of a machine. "Gambling machines or devices" includes, without 
limitation: 
(a) 
Associated equipment as defined in Title 8, section 1001, 
subsection 2; 
(b) Computer equipment used directly and primarily in the operation 
of a slot machine as defined in Title 8, section 1001, subsection 39; 
(c) An electronic video machine as defined in Title l7, section 330, 
subsection I-A; 
(d) Equipment used in the playing phases oflottery schemes; and 
(e) Repair and replacement parts of a gambling machine or device; ef 
(6) Property located at a retail sales facility and used primarily in a retail sales 
activity unless the property is owned by a business that operates a retail sales 
facility in the State exceeding 100,000 square feet of interior customer selling 
space that is used primarily for retail sales and whose Maine-based operations 
derive less than 30% of their total annual revenue on a calendar year basis from 
sales that are made at a retail sales facility located in the State. For purposes of 
this subparagraph, the following terms have the following meanings: 
(a) "Primarily" means more than 50% of the time; 
(b) 
"Retail sales activity" means an activity associated with the 
selection and purchase of goods or services or the rental of tangible 
personal property. "Retail sales activity" does not include production 
as defined in section l752, subsection 9-B; and 
(c) "Retail sales facility" means a structure used to serve customers 
who are physically present at the facility for the purpose of selecting 
and purchasing goods or services at retail or for renting tangible 
personal property. "Retail sales facility" does not include a separate 
structure that is used as a warehouse or call center facility-:-; or 
(7) Property that is not entitled to an exemption by reason of the additional 
limitations imposed by subsection 2. 
Sec. 10. 36 MRSA §693, suh-§I, as enacted by PL 2005, c. 623, §1, 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. 
The report must identify the 
property for which exemption is claimed 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 1 st 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, disqualifies the taxpayer may not obtain an exemption for that 
property involved from exemption 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 A~sessor subsequently 
determines 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 MRS A §1752, suh-§I-D, as amended by PL 2005, c. 218, §12, is 
further amended to read: 
I-D. Casual sale. "Casual sale" means an isolated transaction in which tangible 
personal property or a taxable service is sold other than in the ordinary course of repeated 
and successive transactions of like character by the person making the sale. "Casual sale" 
includes transactions at a bazaar, fair, rummage sale, picnic or similar event by a civic, 
religious or fraternal organization that is not a registered retailer. The sale by a registered 
retailer of tangible personal property that that retailer has used in the course of the 
retailer's business is not a casual sale if that property is of like character to that sold by the 
retailer in the ordinary course of repeated and successive transactions. "Casual sale" does 
not include any transaction in which a retailer sells tangible personal property or a taxable 
service on behalf of the owner of that property or the provider of that service. "Casual 
sale" does not include the sale or liquidation of G 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. 
Sec. 12. 36 MRSA §1752, sub-§l1, ~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; aOO 
(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~; and 
(3) Any 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. 
Sec. 13. 36 MRSA §1760-C, as amended by PL 2005, c. 622, §9, is further 
amended to read: 
§ 17 60-C. Exempt activities 
The tax exemptions provided by section 1760 to a person based upon its charitable, 
nonprofit or other public purposes apply only if the property or service purchased is 
intended to be used by the person primarily in the activity identified by the particular 
exemption. The tax exemptions provided by section 1760 to a person based upon its 
charitable, nonprofit or other public purposes do not apply where title is held or taken by 
the person as security for any financing arrangement. Exemption certificates issued by 
the State Tax Assessor pursuant to section 1760 must identify the exempt activity and 
must state that the certificate may be used by the holder only when purchasing property 
or services intended to be used by the holder primarily in the exempt activity. If the 
holder of an exemption certificate furnishes that certificate to a person for use in 
purchasing tangible personal property or taxable services that are physically incorporated 
in, and become a permanent part of, real property that is not used by the holder of the 
certificate primarily in the exempt activity, the State Tax Assessor may assess the unpaid 
tax against the holder of the certificate as provided in section 141. When an otherwise 
qualifying person is engaged in both exempt and nonexempt activities, an exemption 
certificate may be issued to the person only if the person has established to the 
satisfaction ofthe assessor that the applicant has adequate accounting controls to limit the 
use of the certificate to exempt purchases. 
Sec. 14. 36 MRSA §2521-A, as amended by PL 2005, c. 218, §31, is further 
amended to read: 
§2521-A. Returns; payment of tax 
Every insurance company, captive insurance company, association, producer or 
attorney-in-fact of a reciprocal insurer subject to the tax as imposed by this chapter shall 
on or before the last day of each April, the 25th day of each June and the last day of each 
October file with the State Tax Assessor on forms prescribed by the State Tax Assessor 
• 
assessor a return for the quarter ending on the last day of the preceding calendar month, 
except for the mettfl:l return due on the 25th day of June, which is for the quarter ending 
June 30th. +hese A final return must be filed on or before March 15th, covering the prior 
calendar year. The 3 quarterly returns may be on an estimated basis, as long as each 
April and June installment equals at least 35% of the total tax paid for the preceding 
calendar year or at least 35% of the total tax to be paid for the current calendar year.,......+fle 
remaining installments must eql:lal and each October installment equals 15% of the total 
tax ~ 
paid for the preceding calendar year or at least 15% of the total tax to be paid for 
the current calendar year. An authorized sompan)' offisial shall affirm which elestive is 
selested. Sush elestive san not be shanged during the surrent calendar year. The final 
return must be filed on or before Marsh 15th sovering the prior salendar year. 
At the time of filing sueh the returns, each insurance company, captive insurance 
company, association, producer or attorney-in-fact of a reciprocal insurer shall pay to the 
State Tax Assessor assessor the amount of tax shown due. 
Insurance companies, captive insurance companies, assocIatIOns, producers or 
attorneys-in-fact of a reciprocal insurer with whose annual tax liability under this chapter 
does not exseeding $500 exceed $1,000 may with approval of the State Tax Assessor file 
an annual return with payment on or before March 15th covering the prior calendar year. 
Sec. 15. 36 MRSA §2551, sub-§19, as enacted by PL 2003, c. 673, Pt. V, §25 
and affected by §29, is amended to read: 
19. Telecommunications equipment. "Telecommunications equipment" means any 
2-way interactive communications device, system or process for transmitting or receiving 
signals and capable of exchanging audio, video, data or textual information. 
"Telecommunications equipment" includes all transmission media that are used or 
capable of being used in the provision of 2-way interactive communications, including, 
without limitation, copper wire, coaxial cable and optical fiber, except those transmission 
media designed and primarily used to transmit electricity. 
"Telecommunications 
equipment" does not include computers, except those components of a computer used 
primarily and directly as a 2-way interactive communications device capable of 
exchanging audio, video, data or textual information. 
Sec. 16. 36 MRSA §4641-D, as amended by PL 2003, c. 391, §3, is further 
amended to read: 
§4641-D. Declaration of value 
Except as otherwise provided in this section, any deed, when offered for recording, 
and any report of a transfer of a controlling interest must be accompanied by a statement 
er declaration prepared in duplicate and~ signed, subjest to the penalties of perjury, by the 
parties to the transaction or their authorized representatives, declaring the value of the 
property transferred and indicating the taxpayer identification numbers of the grantor and 
grantee. The statement or declaration of value with regard to a transfer by deed must 
include evidence of compliance with section 5250-A and referense to. The declaration of 
value must identify the appropriate tax map and parcel number of the property transferred 
unless ne !! tax map extsts does not exist that includes that property, in which event the 
declaration must indicate that He an appropriate tax map ~ 
does not exist. The 
exceptions to the foregoing are the following are exempt from these requirements: 
1. 
Governmental conveyances. Any conveyance by or to the United States of 
America, the State of Maine or any of their instrumentalities, agencies or subdivisions. 
For purposes of this subsection, only governmental entities are exempt from the 
requirement to file a declaration of value; 
2. Mortgage. Any mortgage or mortgage discharge; 
3. Partial release of mortgage. Any partial release of a mortgage deed; 
4. 
Deed affecting previous deed. 
Any deed whish that, without additional 
consideration, confirms, corrects, modifies or supplemeI1ts a previously recorded deed; 
and 
5. Deed dated prior to Oetober 1, 1975. Any deed dated or aclmowledged prior to 
October 1, 1975, and offered for recording after that date; and 
6. Deed of distribution. Any deed of distribution made pursuant to Title 18-A. 
If the transfer is declared not subject to exempt from the tax imposed by this chapter, 
the reason therefor shall for the exemption must be stated on the declaration of value. 
The declaration of value must be in a form prescribed by the State Tax Assessor, who 
shall provide an adequate supply of such forms to each register of deeds in the State. The 
State Tax Assessor shall prescribe a form for the declaration of value with regard to 
transfers of controlling interests subject to tax under this chapter. 
The State Tax 
Assessor, by rule, may establish grounds and procedures for waiver of the reguirement 
that the taxpayer identification numbers of the grantor and grantee must be shown on the 
declaration of value. Rules adopted pursuant to this section are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
The register of deeds shall transmit both copies of the declaration of value to the State 
Tax Assessor not later than 40 days from the date of recordation of the deed subj ect to the 
tit* or, in the case of a transfer of a controlling interest subject to tax under this chapter, 
no later than the 10th day of the month following the month in which the report of the 
transfer is received by the register of deeds. 
The State Tax Assessor shall, on or before the 20th day of eash the month following 
the month of receipt, transmit one copy of each declaration of value to the assessors of 
the municipality or the chief assessor of a primary assessing area in which the real estate 
is situated. 
Sec. 17. 36 MRSA §S122, sub-§1, ~V, as amended by PL 2005, c. 519, Pt. CC, 
§ 1 and Pt. NNN, § 1 and affected by §3, is repealed and the following enacted in its place: 
V. For tax years beginning on or after January 1, 2003 and before January 1,2007, 
the amount claimed as a federal income adjustment for stutlent loan interest under the 
" 
-' 
.. 
Code, Section 62 (a)( 17), but only for interest paid after 60 months from the start of 
the loan repayment period: 
18. 36 MRSA §S122, sub-§l, ~rX, a" ell,KleC b:, PI, :005, c. ~1, PL P, §,4 
and affected by § 10, is amended to read: 
X. 
An amount equal to the taxpayer's federal deduction relating to income 
attributable to domestic production activities clairned in accordance with Section 102 
of the federal American Jobs Creation Act of 2004, PubEc Law 108-357"; and 
Sec. 19. 36 MRSA §5122, sub-§l, ~ 
is enacted to read: 
Y. Any amount of allowable deduction claimed for federal purposes in accordance 
with the election under Section 642(g) of the Code then is also used to determine the 
taxable estate for purposes of calculating the Maine estate tax under chapL.:r 575. 
Sec. 20. 36 MRSA §5219-C, as repealed and replaced by PL 1991, c. 377, §20, is 
amended to read: 
§5219-C. Forest management planning income credits 
Once every 10 years, an individual is allowed a credit against the tax otherwise due 
under this Part for the lesser of $200 or the individual's cost for having a forest 
management and harvest plan developed for a parcel of forest land in this State greater 
than 10 acres. For purposes of this section, the licensed professional forester may not be 
in the regular employ of the individual. In no ease may this This credit may not reduce 
the state income tax to less than zero. Those taxpayers An individual claiming this credit 
must attach a statement from the forester supporting the claim and swear that the credit 
has not been claimed by tflem the individual in the previous 10 years. Those taxpayers 
dedueting An individual who deducts the cost of the forester as an expense under the 
Internal Revenue Code must reduee subtract the expense by the amount of the eredit from 
federal adjusted gross income for purposes of the tax imposed by this Part. This credit 
may be used in any tax year beginning on or after January 1, 1989. 
Sec. 21. 36 MRSA §5251, as amended by PL 2003, c. 20, Pt. AA, §2 and affected 
by §6, is further amended to read: 
§5251. Information statement 
Every person who is required to deduct and withhold tax under this Part, or who 
would have been required 5e to deduct and withhold tax if an employee had claimed no 
more than one withholding exemption, shall furnish a written statement as prescribed by 
the assessor to each 5l:l€fl person in respect to the items of income subject to withholding 
paid by sueh person to 5U£h that person during the calendar year on or before February 
Bth January 31 st of the succeeding year, or, in the case of an employee who is 
terminated before the close of 5U£h the calendar year, within 30 days from the date en 
whieh the last payment of wages is made, a written statement as preseribed by the 
assessor showing of receipt of a written request from the employee if that 30-day period 
ends before January 31 st. The statement must show the amount of wages paid by the 
employer to the employee, or, in the case of withholding pursuant to sections 5250-B and 
)255-B~ the total items of income that were subject to withholding, the amount deducted 
and withheld as tax and such other information as the assessor shall presoribe requires. 
Sec. 22. 36 MRSA §5251-A is enacted to read: 
§5251-A. Fraudulent statement or failure to furnish statement 
A person who is required by section 5251 to furnish a statement to a payee and who 
willfully fails to furnish that statement at the time required by section 5251, in the form 
and showing the information prescribed by the State Tax Assessor, or who willfully 
furnishes a false or fraudulent statement commits a civil violation for which a fine of $50 
for each such failure must be imposed. 
Sec. 23. 36 MRSA §6651, sub-§l, as amended by PL 2005, c. 623, §2, is further 
amended to read: 
1. Eligible property. "Eligible property" means qualified business property first 
placed in service in the State, or constituting construction in progress commenced in the 
State, after April 1, 1995, but does not include property that qualifies for exemption 
pursuant to chapter 105, subchapter 4 C is eligible business equipment as defined in 
section 691, subsection 1. "Eligible property" includes, without limitation, repair parts, 
replacement parts, additions, accessions and accessories to other qualified business 
property placed in service on or before April 1, 1995 if the part, addition, accession or 
accessory is first placed in service, or constitutes construction in progress, in the State 
after April 1, 1995, unless such property qualifies for exemption pursuant to chapter 105, 
subchapter 4 C is eligible business equipment as defined in section 691, subsection 1. 
"Eligible property" also includes inventory parts. 
Sec. 24. Application. That section of this Act that amends the Maine Revised 
Statutes, Title 30-A, section 5681, subsection 2, paragraph C applies to fiscal years 
beginning on or after July 1, 2007. That section of this Act that enacts Title 36, section 
187-B, subsection I-A applies to tax years beginning on or after January 1, 2007. That 
section of this Act that amends Title 36, section 653, subsection 1, paragraph D-l applies 
to taxes assessed based on the status of property on or after April 1, 2007. That section of 
this Act that amends Title 36, section 2521-A applies to periods beginning on or after 
January 1,2008. That section of this Act that enacts Title 36, section 5122, subsection 1, 
paragraph Y applies to tax years beginning on or after January 1,2007. That section of 
this Act that amends Title 36, section 5219-C applies to tax years beginning on or after 
January 1, 2007. That section of this Act that amends Title 36, section 5251 applies with 
respect to items of income paid in calendar years beginning on or after January 1, 2007. 
That section of this Act that enacts Title 36, section 5251-A applies with respect to 
statements required to be furnished on or after January 1, 2007. 
SUMMARY 
This bill makes the following changes to the laws governing taxation. 
It amends the definition of "annual growth ceiling," which is used for purposes of 
state-municipal revenue sharing to determine the amount, if any, that must be transferred 
... 
to the Disproportionate Tax Burden Fund, to correct the omission of this change when 
various taxable services were removed from the sales tax and placed in a newly created 
service provider tax. 
It authorizes the State Tax Assessor to seek an injunction against a person who 
refuses to register, to file returns or to pay taxes under the service provider tax law as 
provided in the Maine Revised Statutes, Title 36, chapter 358. 
It enacts penalties for failure to file an information return under the income tax law 
by partnerships and S corporations, if the partnership or S corporation has received a 
formal demand that the return be filed, and for filing substantially excessive refund 
claims under the fuel tax laws. 
It expands the circumstances under which a person may be required to file a tax 
return electronically and make tax payments by electronic funds transfer, using a phased-
in approach. 
It expands and clarifies the eligibility of paraplegic veterans of certain war periods for 
a property tax exemption, making the eligibility periods of this exemption the same as 
those of the general veterans' exemption. 
It amends the definition of "eligible business equipment" by adding a reference to 
existing limitations. 
It clarifies that a taxpayer who fails to timely file a report identifying the property that 
is claimed to be exempt may not obtain an exemption for that tax year for that property 
under the business equipment tax exemption laws, Title 36, chapter 105, subchapter 4-C. 
It clarifies that bulk sales of inventory being held for sale or lease in the ordinary 
course of business are not casual sales. 
It amends the definition of "retail sale" to clarify that sales of tangible personal 
property to a person who is not engaged in the business of selling that kind of property 
are not exempt sales for resale, even if the property is in fact subsequently resold through 
a 3rd-party retailer. 
It provides authority for the State Tax Assessor to issue an assessment against an 
exempt organization that has authorized inappropriate use of its exemption. 
It eliminates a requirement that an insurance company must elect a basis for reporting 
and paying the insurance premium tax, and increases the threshold for quarterly filing of 
insurance premium tax returns from $500 per year to $1,000 per year. 
It clarifies the definition of "telecommunications equipment" to include any wiring 
capable of transmitting or receiving telecommunications signals, regardless of the actual 
use of the wiring, consistent with past and present administrative practice. Current 
technology uses optical fiber, data wire and coaxial cable, all of which are capable of 
providing either one-way or 2-way transmission service. The ultimate use of the wiring is 
often unknown, uncertain or subject to change. 
It eliminates the requirement that a declaration of value under the real estate transfer 
tax laws must be filed in duplicate, and authorizes the State Tax Assessor to establish by 
rule guidelines for waiving the requirement that the declaration of value must indicate the 
taxpayer identification numbers of the grantor and grantee. It also repeals an obsolete 
provision relating to deeds executed before the effective date of the tax. 
It adds a specific requirement that estates must include in Maine adjusted gross 
income administrative expenses that were claimed as a deduction for Maine estate tax 
purposes. 
It changes certain requirements relating to payee statements furnished with respect to 
income that is subject to Maine income tax withholding to make them consistent with 
federal law . 
It amends the forest management planning income tax credit to require that forest 
land be located in this State in order to be eligible for the credit. 
It establishes a penalty similar to that imposed by federal law for failure to furnish 
accurate and timely statements to payees with respect to income that is subj ect to Maine 
income tax withholding. 
It makes specific the statutory references to eligible business equipment for which no 
claim may be made under the business equipment reimbursement program.