An Act To Cut Taxes on Maine Residents by over $140,000,000
Maine Legislature, Session 123, LD 1925
Senate Amendment SA_G_S337 (Senate)
Amends: 36 MRSA §5111

SENATE AMENDMENT" G" 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: 
II 
'An Act To Reduce Maine's Income Tax Rate to 4.9%' 
Amend the bill in Part A by striking out all of section 1 and inserting the following: 
'Sec. A-I. 36 MRSA §5111, as amended by PL 1999, c. 731, Pt. T, §§1 to 7, is 
repealed and the following enacted in its place: 
§Sl11. Imposition and rate of tax 
A tax is imposed for each taxable year beginning on or after January 1, 2008 on the 
Maine taxable income of every resident individual of this State at the following rates: 
For tax years beginning in: 
2008 and 2009 
2010 and 2011 
2012 and 2013 
2014 and 2015 
2016 and after 
The rate is: 
4.9% 
4.8% 
4.7% 
4.6% 
4.5% 
Amend the bill in Part A in section 6 in paragraph N in subparagraph (3) in the 2nd 
line (page 1, line 35 in L.D.) by striking out the following: "2008" and inserting the 
following: '20 I 0' 
Amend the bill in Part A in section 15 in paragraph N in subparagraph (3) in the 2nd 
line (page 3, line 31 in L.D.) by striking out the following: "2008" and inserting the 
following: '2010' 
Amend the bill in Part A in section 22 in §5218-A in subsection 2 in paragraph A 
(page 8, line 9 in L.D.) by striking out the following: "$750" and inserting the following: 
'$600' 
SENATE AMENDMENT 
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SENATE AMENDMENT" 6 " to H.P. 1362, L.D. 1925 
Amend the bill in Part A in section 22 in §5218-A in subsection 2 in paragraph B in 
the 2nd line (page 8, line 11 in L.D.) by striking out the following: ".ilJ.QQ" and inserting 
the following: '$900' 
Amend the bill in Part A in section 22 in §5218-A in subsection 2 in paragraph C in 
the 2nd line (page 8, line 13 in L.D.) by striking out the following: "$1.450" and inserting 
the following: '$1,200' 
Amend the bill in Part A in section 22 in §5218-A in subsection 3 the first line (page 
8, line 14 in L.D.) by striking out the following: "$125" and inserting the following: 
'$150' 
Amend the bill in Part A in section 22 in §5218-A by striking out all of subsection 4 
(page 8, lines 17 to 23 in L.D.) and inserting the following: 
'4. Phaseout of credit. The household credit calculated under subsections 2 and 3 is 
reduced by $2.50 for every $100 that the individual's taxable income exceeds: 
A. For single individuals and married persons filing separate returns, $25,000; 
B. For unmarried individuals or legally separated individuals who qualify as heads of 
households, $37,500; and 
C. For individuals filing married joint returns or surviving spouses permitted to file a 
joint return, $50,000.' 
Amend the bill in Part A in section 22 in §5218-A by striking out all of subsection 5 
(page 8, lines 24 to 26 in L.D.) 
Amend the bill in Part A in section 22 in §5218-A by renumbering the subsections to 
read consecutively. 
Amend the bill in Part A in section 23 in §5218-B in subsection 3 in paragraph A in 
the last line (page 9, line 24 in L.D.) by inserting after the following: "2." the following: 
'plus the additional credit calculated under section 5218-A, subsection 3' 
Amend the bill in Part A in section 23 in §5218-B in subsection 3 in paragraph B in 
subparagraph (1) in the last line (page 9, line 27 in L.D.) by striking out the following: 
"$1,300" and inserting the following: '$1,500' 
Amend the bill in Part A in section 23 in §5218-B in subsection 3 in paragraph B in 
subparagraph (2) (page 9, line 28 in L.D.) by striking out the following: "$2,000" and 
inserting the following: '$2,250' 
Amend the bill in Part A in section 23 in §5218-B in subsection 4 in the 2nd line 
(page 9, line 31 in L.D.) by striking out the following: "and refundability" 
Amend the bill in Part A in section 23 in §5218-B in subsection 4 in the 3rd line 
(page 9, line 32 in L.D.) by striking out the following: "subsections 4 to 6" and inserting 
the following: 'subsections 4 and 5' 
Amend the bill by striking out all of Part B and Part C. 
Amend the bill in Part E by striking out all of section 13. 
SENATE AMENDMENT 
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SENATE AMENDMENT" 6 "to H.P. 1362, L.D. 1925 
Amend the bill in Part E in section 18 in subsection 17-B by striking out all of 
paragraphs H to J (page 26, lines 24 to 26 in L.D.) and inserting the following: 
'H. Personal property services; and 
I. Transportation and delivery services.' 
Amend the bill in Part E by striking out all of section 26. 
Amend the bill in Part E in section 33 in the indented paragraph in the 6th line (page 
29, line 24 in L.D.) by striking out the following: "5%" and inserting the following: '~ 
6%' 
Amend the bill in Part E by inserting after section 59 the following: 
'Sec. E-60. Effective date. This Part takes effect January 1,2008.' 
Amend the bill in Part G by inserting after section 3 the following: 
'Sec. G-4. Effective date. This Part takes effect October 1,2007.' 
Amend the bill by striking out all of Part H. 
Amend the bill in Part L by striking out all of section 1 and inserting the following: 
'Sec. L-l. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Provides funds for Maine Revenue Services administrative costs related to the 
changes to several taxes, including funds for 2 Office Assistant II positions and one 
Accounting Associate II position effective October 1, 2007, one Tax Examiner position 
effective July 1,2008 and one Tax Examiner position effective January 1,2009. 
GENERAL FUND 
2007-08 
2008-09 
POSITIONS - LEGISLATIVE COUNT 
3.000 
5.000 
Personal Services 
$108,698 
$239,233 
AIl Other 
$740,466 
$233,045 
GENERAL FUND TOTAL 
$849,164 
$472,278 
Amend the biII by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SENATE AMENDMENT 
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SENATE AMENDMENT" G " to H.P. 1362, L.D. 1925 
SUMMARY 
This amendment lowers the flat rate of the income tax to 4.9% beginning January 1, 
2008. The flat rate is phased down to 4.8% in 2010 and 2011, 4.7% in 2012 and 2013, 
4.6% in 2014 and 2015 and 4.5% thereafter. A modified resident credit is provided to 
retain progressivity in the income tax. 
The amendment deletes the parts of the bill that make changes in the homestead 
exemption and the Maine Residents Property Tax Program and the provision to allocate a 
portion of sales tax revenue growth to municipalities. The bill concentrates on income 
tax reductions only. 
The amendment maintains most expansions to the sales tax base, but eliminates the 
expansion to real property services, such as electrical, plumbing, cooling, heating, 
flooring, lawn care and snow plowing services, and to sales of newspapers and other 
pUblications. The general sales tax rate is increased to 6%. 
FISCAL NOTE REQUIRED 
(See attached) 
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SPONSOREDBY: ____ 
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___ 
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(Senator TURNER) 
COUNTY: Cumberland 
SENATE AMENDMENT 
Approved: 06/18/07 Mac.. 
LD 1925 
LR 2657(20) 
An Act To Cut Taxes on Maine Residents by over $140,000,000 
Fiscal Note for Bill as Amended by Senate Amendment" G " 
Sponsor: Sen. Turner of Cumberland 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2007-08 
2008-09 
2009-10 
Net Cost (Savings) 
General Fund 
($237,635) 
($188,601) 
($929,200) 
i.ppropriations/ Allocations 
General Fund 
$849,164 
$964,278 
$1,400,556 
Other Special Revenue Funds 
$0 
$1,001,493 
$3,101,329 
Revenue 
General Fund 
$1,086,799 
$1,152,879 
$2,329,756 
Other Special Revenue Funds 
($1,612,732) 
($1,367,517) 
$649,943 
Fiscal Detail and Notes 
Projections 
Gross Revenue Impact - Bill as Amended 
2007-08 
2008-09 
2009-10 
Individual Income Tax 
Flat Rate Decling from 4.9% to 
($157,720,160) ($398,331,840) ($409,154,000) 
4.5%, Household Credit 
Section 179 Conformity 
$0 
$0 
($1,626,300) 
Corporate Income Tax 
Flat Rate at 8.93% 
$1,020,000 
$6,822,500 
$6,980,000 
Sales and Use Tax 
Expand Base, Repeal Exemptions, 6% 
$105,088,613 
$281,820,186 
$291,729,381 
Meals and Lodging to 8% 
$8,227,200 
$26,890,000 
$28,110,000 
Expanded Tax on Prepared Foods @ 8% 
$11,116,800 
$35,400,000 
$35,890,000 
Real Estate Transfer Tax 
Graduated Tax Based on Value 
$23,450,000 
$36,820,000 
$40,686, 100 
LR2657(20) - Fiscal Note - Page 1 of2 
Projections 
2010-11 
$4,625,181 
$2,000,745 
$3,078,489 
($2,624,436) 
$103,338 
Projections 
2010-11 
($431,578,000) 
($2,455,198) 
$7,166,500 
$302,724,708 
$29,340,000 
$36,470,000 
$45,446,374 
Beer and Wine 
Double Excise Tax (except for small 
$8,291,614 
$10,364,518 
$10,364,518 
$10,364,518 
($525,933) 
($214,636) 
$2,979,699 
($2,521 ,09~\ 
General Fund Appropriation Summary 
Elderly Tax Deferal Porgram 
$0 
$492,000 
$1,060,875 
$1,647,008 
Administrative Costs 
$849,164 
$472,278 
$339,681 
$353,737 
$849,164 
$964,278 
$1,400,556 
$2,000,745 
Other Special Revenue Fund Summary 
Local Government Fund 
($ 1,645,645) 
($2,417,357) 
($2,415,120) 
($2,905,593 ) 
Tourism Marketing Promotion Fund 
$0 
$1,001,493 
$3,101,329 
$3,078,489 
Fund for the Efficient Delivery of Local and 
$32,913 
$48,347 
$48,302 
$58,112 
LR2657(20) - Fiscal Note - Page 2 of2