An Act To Modernize the Tax Laws and Provide over $75,000,000 to Residents of the State in Tax Relief
Maine Legislature, Session 124, LD 1088
Committee Amendment CA_A-HA_B_H538 (House)

HOUSE AMENDMENT "B "to COMMITTEE AMENDMENT "A" to H.P. 750, 
L.D. 1088, Bill, "An Act To Modernize the Tax Laws and Provide over $75,000,000 to 
Residents of the State in Tax Relief" 
Amend the amendment by Striking out all of pages 1 to 10 and page 11, lines 1 to 31 
and inserting the following: 
'Amend the bill by striking out all of Parts A, Band C and inserting the following: 
'PART A 
. 
Sec. A-I. 5 MRsA §1518-A, as enacted by PL 2005, c. 2, Pt. A, §4 and affected 
by § 14, is amended to read: 
§1518-A. Tax Relief Fund for Maine Residents 
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 reliefto residents of the State. The fund consists of all resources transferred to the 
fund under this section and section 1536 and other resources madeavaih,lble to the fund. 
2. Nonlapsing fund. Any unexpended balance. in the TaJ( Relief Fund for Maine 
Residents may fund does not lapse but must be lli carried forward to be used pursuant to 
subsection 1. 
3. Transfer from revenue growth. Beginning with fiscal year 2010-11, at the close 
of each fiscal year, the State Controller shall transfer to the fund any General Fund 
revenue received by the State for the fiscal year being closed that exceeds the amount of 
revenue received by the State for the previous fiscal year, adjusted by the growth 
limitation factor calculated under section 1534, subsection 2. 
4. Income tax reduction. Amounts contained in the fund must be used to reduce 
individualsl income taxes. The State Tax Assessor shall present legislation annually to 
reduce the income tax burden pursuant to this section. This legislation must use any 
amounts contained in the fund to: 
. 
A. Reduce individual income tax rates until a top rate of 4.5% is reached; and 
Page I - 124LR1600(OS)-1 
HOUSE AMENDMENT 
~ Cb· 
~, 
HOUSE AMENDMENT" I?J" to COMMITTEE AMENDMENT "A'~ to H.P, 750, L.D, 1088 
B. Increase the income threshold to $30,000, below which heads of households and 
married couples filing jointly pay no state income tax.' ' 
Amend the amendment .in Part E by striking out all of section 1 and inserting the 
following: 
. 
. 
'Sec. E-1. Appropriations and allocations. The fo11owing appropriations and 
allocations are made. 
ADMINISTRATIVE AND FlINANCIAL SERVJ[CES, DEPARTMENT"OF 
Revenue Services - Bureau of 0002 
Initiative: Provides funding for 5 Tax Examiner positions and one Senior Tax Examiner 
position beginning October 1,2010 to implement the individual income tax anc:l rent and 
property refund tax law changes. 
13· 
GENERAL FUND 
POSITIONS - lEGISLATNE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
2009-10 
2010-11 
0.000 
6.000 
$0 
$340,479 
$0 
$506,121 
$0 
$846,600 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendmentstrikes all of Parts A, Band C of the hill, which proposed changes to 
the income tax, sales tax and real estate transfer tax, and the changes made by Committee 
24· 
Amendment "A" to those parts. This amendment instead requires the transfer to the Tax 
Relief Fund for Maine Residents, beginning in fiscal year 2010-11; of any growth in· 
revenues over the previous fiscal year adjusted by the growth limitation factor. Money in 
the fund is to be used to reduce the overall individual income tax burden by reducing the 
tax rates until the top rate is reduced to 4.5% and increasing to $30,000 the income 
threshold below which families will not pay income tax. It also strikes and replaces the 
appropriation in Part E of Committee Amendment "A". 
FISCAL NOTE REQUIRED 
(See attacbed) 
SPONSORED BY: 
(Representativi 
TOWN: 
~.~ 
HOUSE AMENDMENT 
'.,\ 
'1, 
) 
! 
y 
) 
) 
') 
t 
" 
/~"'\, 
( 
" 
Approved: 06/04/09 Mac:.. 
LD 1088 
LR 1600(05) 
An Act To Modernize the Tax Laws and Provide over $75,000,000 to Residents of the State in Tax 
" Relief 
Fiscal Note for House Amendment ':.!JI to Committee Amendment "A" 
" Sponsor: Rep. Chase of Wells 
" 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
2009-10 
2010-11 
2011-12 
2012-13 
Net Cost (Savings) 
General Fund 
$8,166,927 
($6,454,491 ) 
" ($5,148,136) 
$29,296,329 
Appropriations/Allocations 
General Fund 
($523,073) 
($664,491) " 
($448,136) 
($470,537) 
Other Special Revenue Funds 
$0 
($740,000) 
($1,860,000) 
($1,850,000) 
"·"·Revenue 
General Fund 
($8,690,000) 
$5,790,000 
$4,700,000 
($4,680,000) 
Other Special Revenue Funds 
($350,000) 
($310,000) 
($1,510,000) 
($1,970,000) 
Transfers 
General Fund 
$0 
$0 
$0 
($25,086,866) 
Fiscal Detail and Notes 
This amendment eliminates all the income tax, sales tax and Real Estate Transfer Tax changes proposed in the 
committee amendment. It retains the Tax and Rent Refund Program changes. It also creates the Tax ReIiefFund for 
Maine Residents so that it wili receive revenue in excess of a certain calculated growth limitation factor. It is not until 
fiscal year 2012-13 that the projected revenue growth rate will be sufficient to trigger the first transfer, estimated to be 
$25,086,866, from the unappropriated surplus of the General Fund to the Tax Relief Fund for Maine Residents. The 
State Tax Assessor will present legislation annually to reduce the individual income tax burden utilizing the money in 
the Tax Relief Fund. 
Detail of GF Revenue Changes Eliminated 
Flat Tax Rate @ 6.5% and various new credits 
$35,650,000 
$94,130,000 
$94,950,000 
$89,540,000 
Sales and Use Tax 
Meals and Lodging @ 8.5% 
($13 ,318,867) 
($34,382,265) 
($35,243,073) 
($36,559,335) 
Candy @ 8.5% 
($1,413,600) 
($3,453,820) 
($3,427,809) 
($3,533,610) 
Short-term auto rentals @ 12.5% 10/01109 
($627,000) 
($1,254,000) 
($1,282,500) 
($1,330,000) 
Expands Sales and Use Tax base * 
($27,100,533) 
($46,059,915) 
($46,536,618) 
($48,457,055) 
~eal Estate Transfer Tax 
Graduated Tax Based on Vl'J.lue > $500,000 
($1,880,000) 
($3,190,000) 
($3,760,000) 
($4,340,000) 
Total General Fund Revenue Change 
($8,690,000) 
$5,790,000 
$4,700,000 
($4,680,000) 
LR 1600(05) - Fiscal Note - Page I of I