An Act To Amend the Tax Laws
Maine Legislature, Session 124, LD 1540
Committee: Taxation
Sponsors: WATSON, PERRY
Amends: 30-A MRSA §706, 36 MRSA §186, 36 MRSA §2513, 36 MRSA §2903, 36 MRSA §3204-A

Legislative Document 
No. 1540 
H.P. 1084 
House of Representatives, December 21,2009 
An Act To Amend the Tax Laws 
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204. 
Received by the Clerk of the House on December 17,2009. Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
Presented by Representative WATSON of Bath. 
Cosponsored by Senator PERRY of Penobscot. 
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MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §706, as enacted by PL 1987, c. 737, Pt. A, §2 and Pt. C, 
§ 1 06 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further 
amended to read: 
§706. Apportionment of county tax; warrants 
When a county tax is authorized, the county commissioners, within 30 days e.f.-:tftat 
authorization, shaH apportion it upon the municipalities, unorganized territory and other 
places in that county according to the -last most recent state valuation and fix the date for 
the payment of the tax. This date may not be earlier than the first day of the fullowing 
September. They may add that sum above to the sum se authorized, an amount not 
exceeding 2% of that sum, as if a fractional division necessitates that addition and if they 
demonstrate that necessity in the record of that apportionment, and issue their warrant to 
the assessors requiring them to immediately assess the sum apportioned to their 
municipality or place, and to commit their assessment to the constable or collector fur 
collection. The county treasurer shall immediately certifY the millage rate to the State 
Tax Assessor. The State Tax Assessor shall separately assess this millage rate upon the 
real and personal property in the unorganized territory "'lithin the appropriate county. The 
county commissioners shaH establish the date for the payment of the tax. The date may 
not be earlier than the first day of the foHowing September. 
No later than the 15th of July preceding the date established for payment of the tax, 
the county commissioners shaH issue their warrant to the assessors of the municipalities 
and other places and to the State Tax Assessor for the unorganized territory within that 
county. Those officers shall assess the sum apportioned to their tax jurisdiction and 
commit their assessment for coHection in the same manner as other amounts to be raised 
by the property tax during the tax year to which the county tax warrant applies. 
If a municipality or place or the State Tax Assessor must make a supplemental 
assessment due to failure by the county commissioners to issue their warrant by July 
15th, the county must bear the costs of that supplemental assessment. Those costs may be 
recovered by the tax jurisdiction through an offset against the county tax that the tax 
jurisdiction would otherwise be required to pay over to the county. 
The county may collect delinquent county taxes and charge interest on delinquent 
county taxes as provided under Title 36, sections 891.,...g.n and 892-A. 
Sec. 2. 36 MRS A §111, sub-§5, as amended by PL 2009, c. 434, §4, is further 
amended to read: 
5. Tax. "Tax" means the total amount required to be paid, withheld and paid over or 
collected and paid over with respect to estimated or actual tax liability under this Title~ 
any credit or reimbursement allowed or paid pursuant to this Title that is recoverable by 
the assessor and any amount assessed by the State Tax Assessor assessor pursuant to this 
Title, including any interest or penalties provided by law. For purposes of this chapter, 
"tax" also means any fee, fine, penalty or other debt owed to the State provided for by law 
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if thls that fee, fine, penalty or other debt is subject to collection by the assessor pursuant 
to statute or transferred to the bureau for collection pursuant to section 112-A. 
Sec. 3. 36 MRSA §186, as amended by PL 2003, c. 673, Pt. KK, § I and affected 
by §3, is further amended to read: 
§186. Interest 
AHy A person who fails to pay any tax, other than a tax imposed pursuant to chapter 
105, on or before the last date prescribed for payment is liable for interest on the tax, 
calculated from that date and compounded monthly. The rate of interest for any calendar 
year equals the highest prime rate as published in the Wall Street Journal on the first day 
of September of the preceding calendar year or, if the first day of September falls on a 
weekend or holiday, on the next succeeding business day, rounded up to the next whole 
percent plus 3 percentage points. For purposes of this section, the last date prescribed for 
payment of tax must be determined without regard to any extension of time permitted for 
filing a return. A tax that is upheld on administrative or judicial review bear~ interest 
from the date on which payment would have been due in the absence of review. Any Hi*; 
interest or penalty imposed by this Title amount that has been erroneously refunded and is 
recoverable by the assessor bears interest at the abe¥e rate determined pursuant to this 
section from the date of payment of the refund. A credit or reimbursement that has been 
allowed or paid pursuant to this Title and is recoverable by the assessor bears interest at 
the rate determined pursuant to this section from the date it was allowed or paid. Interest 
accrues automatically, without being assessed by the assessor, and is recoverable by the 
assessor in the same manner as if it were a tax assessed under this Title. If the failure to 
pay a tax when required is explained to the satisfaction of the assessor, the assessor may 
abate or waive the payment of all or any part of that interest. 
Except as otherwise provided in this Title, and except for taxes imposed pursuant to 
chapter 105, interest, at the rate determined by the assessor for underpayments pursuant 
to this section, must be paid on overpayments of tax from the date the return listing the 
overpayment was filed, or the date payment was made, whichever is later. 
Sec. 4. 36 MRS A §1760, sub-§45, ~A, as amended by PL 2007, c. 438, §45, is 
fllliher amended to read: 
A. If the property is an automobile, as defined in Title 29-A, section 10 I, subsection 
7, and if the owner is an individual who was, at the time of purchase, a resident of the 
other state and either emoloved or registered to vote there; 
Sec. 5. 36 MRSA §2513, first '1[, as amended by PL 2007, c. 627, §52, is further 
amended to read: 
Every insurance company or association that does business or collects premiums or 
assessments including annuity considerations in the State, including surety companies 
and companies engaged in the business of credit insurance or title insurance, shall, for the 
privilege of doing business in this State and in addition to any other taxes imposed for 
that privilege, pay a tax upon all gross direct premiums including annuity considerations, 
whether in cash or otherwise, on contracts written on risks 10caLed ur resident in the State 
for insurance of life, annuity, fire, casualty and other risks at the rate of 2% a year. Every 
surplus lines insurer that does business or collects premiums in the State shall, for the 
privilege of doing business in this State and in addition to any other taxes imposed for 
that privilege, pay a tax upon all gross direct premiums, whether in cash or otherwise, on 
contracts written on risks located or resident in the State at the rate of 3% a year. 
The 
producer of those contracts must collect the tax and rep0l1 and pay the tax to the State 
Tax Assessor as provided in section 2521-A, except that an insurance agency may elect to 
collect and pay the tax on surplus lines premiums on behalf of all of its employees who 
are surplus lines producers. 
For purposes of this section, the term "annuity 
considerations" includes amounts paid to an insurance company when received for the 
purchase of a contract that may result in an annuity, even wfl.en. if the annuitization never 
occurs or does not occur until some time in the future and the amounts are in the 
meantime applied to an investment vehicle other than an annuity. This section does not 
apply to mutual fire insurance companies subject to tax under section 2517 or to captive 
insurance companies formed or licensed under Title 24-A, chapter 83 or under the laws of 
another state. 
Sec. 6. 36 MRSA §2903, : I.lIb-§4, 9TA, as enacted by PL 1997, c. 738, §4, IS 
amended to read: 
A. 
Sold wholly for exportation from this State by a licensed distributor or an 
exporter; 
Sec. 7. 36 MRSA §3204-A, sub-§5, as enacted by PL 1995, c. 271, §7, IS 
amended to read: 
5. Exportation. Special fuel sold only for exportation from this State by a licensed 
supplier; 
Sec. 8. Application. That section of this Act that amends the Maine Revised 
Statutes, Title 36, section 2513 applies to tax periods beginning on or after January 1, 
2010. 
SUMMARY 
This bill makes the following changes to the laws governing taxation. 
The bill clarifies the procedure for apportionment of county taxes in the unorganized 
territory, requires the county commissioners to issue their warrant for county taxes by 
July 15th and provides that the county must bear the cost of a supplemental assessment if 
they fail to do so. 
The bill provides that a credit or reimbursement allowed or paid that is recoverable 
by the State Tax Assessor is a tax for purposes of the administrative provisions of the 
Maine Revised Statutes, Title 36. 
The bill imposes interest on credits and reimbursements alI owed or paid that are 
recoverable by the State Tax Assessor. 
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The bill repeals the requirement that a nonresident purchaser must have been 
employed or registered to vote in another state in order to qualify for exemption from 
Maine use tax on an automobile purchased and used in the other state, 
The bill provides that an insurance agency may elect to collect and pay the tax on 
surplus lines premiums on behalf of its employees who are surplus lines producers. 
The bill limits the exemption for internal combustion engine fuel sold wholly for 
exportation from the State to sales by a licensed distributor or an expOlier. 
The bill limits the exemption for special fuel sold only for exportation from the State 
to sales by a licensed supplier.