An Act Concerning Technical Changes to the Tax ~aws
Maine Legislature, Session 124, LD 1093
Committee: Taxation
Sponsors: WATSON, PERRY
Amends: 10 MRSA §1020, 36 MRSA §112, 36 MRSA §176-A, 36 MRSA §191, 36 MRSA §506-A, 36 MRSA §843, 36 MRSA §1112, 36 MRSA §1752, 36 MRSA §1760, 36 MRSA §1760-B, 36 MRSA §2520, 36 MRSA §2551, 36 MRSA §2552, 36 MRSA §2557, 36 MRSA §2902, 36 MRSA §2903, 36 MRSA §2904, 36 MRSA §2906, 36 MRSA §3202, 36 MRSA §3203, 36 MRSA §3205, 36 MRSA §3209, 36 MRSA §3212, 36 MRSA §3321, 36 MRSA §4901, 36 MRSA §5111, 36 MRSA §5122, 36 MRSA §5175, 36 MRSA §5175-A, 36 MRSA §5176, 36 MRSA §5200-A, 36 MRSA §5203-B, 36 MRSA §5217-D, 36 MRSA §5220, 36 MRSA §6209, 36 MRSA §6753, 36 MRSA §6754

MAINE STATE LEGISLATURE 
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AUGUSTA, MAINE 
124th'MAINELEGISLATURE' 
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Legislative, Document 
No. 1093 
H.P.755 . 
House of Representatives, March 19,2009 
An Act Concerning Technical Changes to the Tax ~aws 
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 Representative WATSON of Bath. 
Cosponsored by Senator PERRY of Penobscot. 
Printed on recycled p"per 
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111· 7Il1i£~{ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §1020, sub':'§2, ~, as enacted by PL 2007, c. 464, §6, is 
amended to read: 
D. All revenue received from the State Tax Assessor pursuant to former subsection 6 
and subsection 6.,.A. 
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Sec. 2. 10 MRSA c. 110, sub-c. 11, as amended, is repealed. 
Sec. 3. 10 MRS A §16SS is amended to read: 
§1655. Description of contents; identity of manufacturer or distributor 
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It shall be lli unlawful for ftfIj' £!. person, firm or corporation to store, keep, expose for 
sale, offer for sale or sell from any tank or container or from any pump or other 
distributing device or equipment; any intemal combustion engine fuels, lubricating oils or 
other similar products than those indicated, by the name, trade name, symbol, sign or 
other distinguishing mark or device of the manufacturer or distributor appearing upon the 
_ -tank, container, pump or other distributing equipment from which the same are sold, 
offered for sale or distributed, and all tanks,containers, pumps or other distributing 
equipment containing intemal combustion engine fuels, lubricating oils or other similar 
products sflal-I. must be plainly designated by the name, trademark, symbol, sign or other 
distinguishing mark or device of the manufacturer or distributor. -"\ony person, firm or 
corporation desiring to engage in the business of distribution of internal combustion 
engine fuels, lubricating oils or other similar products at 'Nholesale shall apply to the 
State Tax Assessor for certificate allowing such distribution, -and such applicant shall 
submit with such application to the State Tax Assessor samples or specifications of such 
fuels or oils as he desires to distribute. When such application, accompanied by such 
samples, has been .received by the State Tax Assessor, he shall issue a certificate or 
oermit to enable such oerson. firm or corooration to sell or distribute its oroducts. 
Sec. 4. 
3~ MRSA §lU, sub-§S,as amended by PL 2007, c. 539, Pt. 00, §2, is 
fmiher amended to read: 
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5. Tax. "Tax" means the total amount required to be paid, withheldaild paid over or 
collected and paid over with respect to estimated or actual tax liability under this Title 
and any amount assessed by the State Tax 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 if this debt is subject 
to collection by the assessor pursuant to statute or transferred to the bureau for collection 
pursuant to section 112-A. 
Sec. S. 36 MRSA §112, sub-§I, as repealed.and replaced by PL 1999, c. 127, Pt. 
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A, §47, is amended to read: 
1. General powers and duties. The assessor shall administer and enforce the tax 
laws enacted under this Title and under Title 29-A, and may adopt rules and require such 
information to be reported as necessary. 
The assessor may investigate, enforce and 
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prosecute activities defined as crimes iii this Title and in Title 17-A, sections 358, 751 
and 903. A person having custody or control of books or records containing evidence or 
statements relating to the subject of a criminal investigation under this subsection, upon 
demand of the assessor, shall make those books and records available to the assessor. 
The assessor shall provide, at the time of issuance, to one or more entities that publish a 
monthly state tax service all rules, bulletins, taxpayer notices or alerts, notices of 
rulemaking, any other taxpayer information issued by the assessor, and all substantive 
amendments or modifications of the same, for publication by that 'entity or entities. When 
a significant change has occurred in bureau policy or practice or in the interpretation by 
the bureau of any law, rule or instruction bulletin, the assessor shall, within 60 days of the 
change, provide to the same publishing entity or entities written notice, suitable for 
publication, of the change. 
Sec. 6. 36 MRSA §112, sub-§8, ~, as enacted by PL 1981, c. 364, §7, IS 
, repealed. 
Sec. 7. 36 MRSA §112, sub-§8, ~C, as amended by PL 1983, c. 480, Pt. A,§39, 
is further amended to read: 
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C. Administration of the spruce budworm excise tax in accordance with Title. 12, 
section 84277; and 
Sec. 8. 36 MRSA §112, s'ub-§8, ~ 
is enacted to read:-
D. Administration of the premium imposed on bulk motor vehicle oil under Title 1 0, 
section 1020. 
Sec. 9. 36 MRSA §176-A, sub-§2, ~, as amended by PL 2001, c. 583, §5, is 
further amended.to read: 
B. If aHY f! person liable to pay any delinqllent tax neglects or refuses to pay that tax 
within 10 days after receipt of tfle notice described in pursuanUo section 171, the 
State Tax Assessor may collect the tax. and such fUliher sum as is an additional 
amountsuffic;ient to cover the. expenses of the .levy, by levy llpon all property 
belonging to that person liable to levy except as provided in subsection 5. 
If the 
asses.sor makes a finding that the collection of the tax is in determination of jeopardy 
pursuant to section 145, having given notice of that detei"mination and made demand 
for immediate payment of the tax may be mad.e by the assessor and, upon failure or 
refusal to pay t1uit tax, the assessor may proceed immediately without regard to the 
10-day period provided in section 171 to collect by levy the 'tax by levy 'Nithout 
regard to the 10 day period provided in this section and an additional amount 
sufficient to cover the expenses of the levy. 
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Sec. 10. 36 MRS A §176-A, sub-§5, .,-rA, as enacted by PL 1989, c. 880, Pt. E, 
§3, is amended to read: 
A. The. following property is exempt from levy: 
(n Items of wearing apparel and school books necessary for the taxpayer or the 
members of the taxpayer's family; 
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t2) If the taxpR) er is rhe head of a family, the fuel, pr~ovisions, furniture and 
personal effects in rhe taxpayer's household, an~ls for personal use, livestock and 
poultry of the taxpayer, the total value of which does not exceed $1,500; 
(3) 
Books arld tools necessary for the trade, business or profession of the 
taxpayer, the value of which, in the aggregate, does not exceed $1,000; 
(4) 
.. Any amount payable to the taxpayer with respect to the taxpayer's 
unemployment, including any p0l1ion payable with respect to dependents, .under 
an unemployment compensation law of the United States or any state; 
(5) Mail, addressed to any person, that has not been delivered to the addressee; 
(6) Annuity or pension payments under the federal Railroad Retirement Act of 
1974, 45 United States C()de, Section 231, et seq. Chapter 9, Sub·chapter IV, 
benefits under the federal Railroad Unemployment Insurance Act; 45 United 
States Code, Section 351 Chapter]], special pension payments .received by a 
pe'rson whose name has been entered on the Army, Navy, Air Force and Coast 
Guard Medal of Honor Roll, 38 United .States Code, Section 562 (1982), Chapter 
15, Subchapter IV and anriuities based on retired or retainer pay under 10 United 
States Code, Chapter 73 (1982); 
(7) If the taxpayer is required by judgment of a court of competent jurisdiction, 
entered prior to the date of levy, to contribute to the support of minor children, as 
much of the taxpayer's salary, wages or other income as is necessary to comply _ . 
with :sttefl-a that judgment; 
(8) Any amount payable to or received by a taxpayer as wages or salary for 
personal services, during any period, to the extent that the total of the amounts 
payable to or received by the taxpayer during that. period does not exceed the 
. applicable exempt amount determined under paragraph D; and 
(9) The principal j'esidence of the taxpayer, unless the assessor has mad~ a 
finding determination of jeopardy pursuant to subsection 2, paragraph E, that the 
tax is in jeopardy section 145 or the assessor personally approves in writing the 
levy of sttS!t that proper1y. 
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Sec. 11. 36 MRSA §176-A, sub-§6, CUB, as amended by PL 1999, c. 699, Pt. D, . 
§27 and affected by §30, is further amended to read: 
.. B. The assessor, as soon as practicable after the seizure of tHe proper1y, shall gi¥e 
notice to the ovmeror possessor in the manner prescribed in paragraph l'. and cause a 
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notification notice to be published in a newspaper of general circulation within the 
county where the seizure is made, or, ifthere is no such newspaper, post the noticeat 
the city or town hall nearest the place where the seizure is made and in not less than 
at least 2 other public places. In the case of real property, the notice must be served 
on all persons holding an interest of record, including, withOlit limitation, recorded 
leases and security interest of all types, in the property as reflected at the time the 
notice of levy is recorded by the indices of the registry of deeds in the county where 
the property is located. 
In the case of personal property that is a motor vehicle 
subject to a Certificate certificate of +itle title issued by the Secretary of State, notice 
must be served on all persons holding a security interest of record in the motor 
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veh icle as set forth in the record~ of the Secretary of State. In the caseof the type of 
personal property that may be the subject of a security interest perfected by filing in 
the office of the Secretary of State, notice must be served upon all secured paJiies 
claiming an interest in the property seized as reflected at the time the notice of levy is 
recorded iri the records maintained by the Secretary of State pursuant to Title 11. The 
notice must specify the property to be sold, subject to the liabilities of prior 
encumbrances, if any, and the time, place, manner and conditions of the sale. If levy 
is made without regard to the 1 O-day period provided in subsection 2 section 171, 
public notice of sale of the propeliy seized may not be made within the lO-day period 
unless subsection 7 applies. It is a Class E crime to intentionally remove or deface 
the posted notice of sale prior to the scheduled sale date, unless the property has been 
redeemed or the sale is for some other reason canceled. The assessor or any law 
enforcement officer may enter onto the land if necessary to carry out the purposes of 
this section. 
Sec. 12. 36 MRS A §191, sub-§2, €frO, as amended by PL 1997, c. 537, §60 and 
affected by §62 and amended by PL 2003, c. 689, Pt. B, §6, is fllliher amended to read: 
O. The disclosure to an authorized representative of the Department of Health and 
Human Services of an individual's residence, employer, income and assets for child 
suppOli enforcement pu.rposes as required by the Social Security Act, 4+ 42 United 
States Code, Chapter 7, subchapter N, Part 0 (1966), when a request containing the 
payor's social security number is made by the department; , 
Sec. 13. 36 MRSA §191, s,ub-§2, ~Q, as amended by PL 2001, c. 396, §Il, is 
fllliher amended to read: 
'Q. The listing of licensed special fuel suppliers persOlls possessilig certificates under, 
section 3204 and registered suppliers possessing certificates under section 3205; 
Sec. 14. 36' MRS A §271, sub-§8, as enacted by PL 1985, c. 764, §8, is repealed. 
Sec. 15. 36 MRSA §506-A, as amended by PL 1995, c. 57, §5, is further amended 
to read: 
§506-A. Overpayment of taxes 
Except as provided in section 506, a taxpayer who pays an amount in excess of that 
finally assessed must be repaid the amount of the overpayment plus interest from the date 
of overpayment at a rate to be established by the mlinicipality. 
"!lith respect to 
overpayments of taxes relating to property tax ,years beginning prior to April 1, 1996, the. 
rate of interest may not C)weed the, interest rate established by the municipality for 
del inquent taxes reduced by 4 % but may not be less than 8% nor greater than 12%. '>lith 
respect to overpayments of taxes relating to property tax years beginning on or after April 
I, 1996, the The' rate of interest may not exceed the interest rate established by the 
, municipality for delinquent taxes Of nor may it be less than that rate reduced by 4%. If a 
municipality fails to set establish a rate of interest for overpaYlnents of taxes, it shall pay 
, interest at the rate it has established for del inquent taxes. 
Sec. 16. 36 MRSA§574-B, sub-§l, as amended by PL 1999, c. 33, §1, is further 
amended to read: 
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1. Forest management and harvest plan. A forest management and harvest plan 
.has been must be prepared for tfle each parcel and updated every 10 years. 
The 
landowner shall file a sworn statement with the municipal assessor fbra parcel in a 
municipality or with the State Tax Assessor for parcels a parcel in the unorganized 
territory that a forest management and harvest plan has been prepared for the parcel~ 
landoviller ',"ith a parcel tmwd pursuant to this subchapter on September 30, 1989 has 
until December 31, 1999 to comply '.vith this requirement or to provide evidence to the 
municipal assessor or the State Tax Assessor for parceis in the unorganized territory that 
the lando'Nlier int~nds to develop a forest management and harvest plan by December 31, 
2000 or has eKecllted a contract with a licensed forester for the completion of a forest 
management and harvest plan by December 31, 2000. Until the plan is prepai'ed or 
December 31, 2000, 'Nhichever is earlier, the land is subject to the applicability 
provisions under this section as it existed on April 1, 1982. A landowner who does not 
provide the municipal assessor or the State Tax Assessor for parcels in the unorganized 
territo!)' by December 31, i 999 viith a s\vorn statement that a forest management and 
harvest plan has been prepared Or evidence that the landoviller intends to develop a forest 
management and harvest plan or has executed a contract with a licensed forester for the 
completion of a forest Inanagement and harvest plan by December 31, 2000 shall pay a 
penalt)' of $1 00 to the municipal tax collector or the State Tax Assessor for parcels in the 
unorganized territory. This penalty is in addition to any penalty that is assessed pursuant 
to section 581 for \vithdrU'tVal of land from classification under this subchapter and may 
be enforced in the same manner as a supplemental assessment under section 713.; 
Sec. 17. 36 MRSA §843, sub-§4, as amended by PL 2001, c. 436, §1 and 
affected by§2, is further amended to read: 
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4. Payment requirements fortaxpayers. If the taxpayer has filed an appeal under 
this section without having paid an amount of current taxes equal to the amount of taxes 
paid in the next p)'ecedirig tax year, provided as long as that amount does not exceed the 
amount of taxes due in the current tax year,or the amount of taxes in the current tax year 
not in dispute, whichever is greater, by or after the due date or according to a payment 
schedule mutmilly a'greed to in writing by the taxpayer and the municipal officers, the 
appeal process must be suspended until the taxes, together with any accrued interest and 
costs, have been paid. If an appeal is in process upon expiration ora due date or written 
payment schedule date for payment of taxes in a paIticlilar municipality, without the 
appropriate amount of taxes having been paid, whether the taxes are due for the year 
under appeal or a subsequent tax year, the appeal process must be suspended until the 
appropriate amount of taxes described in this subsection, together with any accrued 
interest and costs, has been paid. This section applies to any property tax appeal filed on 
or after April 1, 1993. This section subsection does not apply to prope\ty with a valuation 
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of less than $500,000. 
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Sec. IS. 36 MRSA §S44, sub-§4, as amended by PL 2003, c. 72, § 1 and affected 
by §2, is further amended to read: 
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4. Payment requirements for taxpayers. If the taxpayer has filed an appeal under 
this section without having paid an amount of current taxes equal to the amount of taxes 
paid in the next preceding tax year, provided as long as that amount does not exceed the 
amount of taxes due in the current tax year,or the amount of taxes in the current tax year 
not in dispute, whichever is greater, by or after the due date, or according to a payment, 
schedule mutually agreed to in writing by the taxpayer and the municipal officers, the 
appeal process must be suspended until the taxes, together with any accrued interest and 
costs, have been paid. If an appeal is in process upon expiration of a due date or written 
payment schedule date for payment of taxes in a particular municipality, without the 
appropriate amount of taxes having been paid, whether the taxes 'are due for the year 
under appeal or a subsequent tax year, the appeal process must be suspended until the 
appropriate amount of taxes described in this subsection, together with any accrued 
interest and costs, has been paid. This section applies to any property tax appeal filed on 
or after April 1, 1993. This seotion subsection does not apply to propeliy with a valuation 
of less than $500,000. 
Sec. 19. 36MRSA §1109, sub-§7, as enacted by PL 1989, c. 748, §5, is repealed. 
Sec: 20. 36 MRSA §1112, last <IT, as enacted by PL 1993, c. 452; § 13, is repealed. 
Sec. 21. 
3~ MRSA §1483, as amended by PL 2007, 'c. 627, §32, is further 
amended to read: 
§1483. Exemptions 
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The following are exempt from the excise tax: 
1. State vehicIe~. Vehicles owned by this state ana QLQy political ,subdivisions' 
thRrRAf of the State;· 
2. Driver education. Motor vehicles registered by municipalities for use in driver 
education in the secondary schools or motor vehicles registered by private secondary 
schools for use in driver education in sttelt those schools; 
3. 
Volunteer fire departments. Motor vehicles owned ,by volunteer fire 
departmen.ts; 
4. 
Dealers or manufacturers. Vehicles owned by bonafide dealers or 
manufacturers of the vehicles, which vehicles that are held seky solely for demonstration 
,and sale and constitute stock in trade, and aircraft registered in accordance with Title 6, 
section 53; 
5. 
Transporter registration. Vehicles to be 'lawfully operated, on' transporter 
registration celiificates,~ 
6. 'Railroads • .;, Vehicles owned by railroad companies that are subject to the excise 
tax imposed fit under chapter 36T7~ 
7. Benevolent and charitable institutions. Vehicles owned and used solely for their 
own purposes by benevolent and charitable institutions that are incorporated by this State 
and entitled to exemption· from property tax eKemption in accordance '.vith under section. 
652; subsection 1; 
8. Literary and scientific institutions. Vehicles owned and used solely for their 
own purposes by literary and scientific institutions afI:€l that are entitled to exemption· 
from property tax e).emption in accordance with under section 652, subsection 1; 
9. Religious societies. Vehicles owned and used solely for their own purposes by 
hOllses of religious worship or religious societies that are entitled to exemption from 
property tax under section 652, subsection I, paragraph G; 
10. 
Certain nonresidents. Motor vehicles permitted to operate without Maine 
.registration under Title 29.,.A, section 109; 
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11. . Interstate commerce. Vehicles traveling in the State only in interstate 
commerce,..-aOO that are owned in a state wherein where an excise or property tax .sflaI.l 
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Have has been paid on the vehicle, and whlefl that grants to Maine mvned Maine-owned 
vehicles the exemption oontained provided in this .subsection; 
12. 
Certain veterans. Automobiles ownec! by veterans who .are granted free 
registration of sooIt those vehicles by the Secretary of State under Title 29-A, section 523, 
subsection I; 
13. Certain buses .. Buses used for the transp0I1ation of passengers for hire in 
interstate or intrastate commerce, or both, by caITiers engaged i~ furnishing common 
. caITier passenger service uflder an operating authority license issued pursuant to Title 
29-A, section 552. At the option of the .appropriate municipality, those buses may be 
. subject to the excise tax provided in section 1482; 
14. 
Antique and experimental aircraft. 
Antique and experimental aircraft as 
defined in Title q, section 3, subsections 10-A and 18-E afI:€l that are registered accordinl! 
te in accordance with the provisions of Title 6; 
15. Adaptive equipment. Adaptive equipment installed on a motor vehicle owned 
bya disabled person or the family of a disabled person to make that vehicle operable or _ 
accessible by a disabled person; and 
16. Active military stationed in Maine. Vehicles owned oya person on active. duty 
serving in the Armed Forces of the United States who is permanently stationed at a 
military or naval post, station or base in the State. A member of the Armed Forces of the 
United States stationed in the State who desires to register that member's vehicle in this· 
State shall. present certification from the commander of the membei"s post, station or 
base, or from the commander's designated agent,. that the member is permanently 
stationed at that post, station or base. For purposes of this subsection, "a person on active 
duty serving in the Armed Forces of the United States" does not include a member of the 
National Guard or the Rekerves of the United States Armed Forces. 
Sec. 22. 36 MRSA §J487, sub-§2, as ~mended by PL 2007, c. 541, Pt. E, § I and 
c. 693, § 13, is repealed and the following enacted in its place: 
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2. State Tax Assessor. The State Tax Assessor shall appoint agents to collect the 
excise tax in the unorganized territory. Agents, iilcluding municipalities designated as 
agents, are allowed a fee of $6 for each tax receipt issued. The State Tax Assessor may 
authorize the offset of credit card fees incurred in the collection of the excise taxes. 
against the receipts from those collections.' Agents shall deposit the remainder on or 
before the 20th day of each month following receipt with the Treasurer of' State. The 
Treasurer of State shall make quarterly payments to each county in an amount that is 
equal to the receipts for that period from each county. Those payments must be made at 
the same time as payments under section 1606. County receipts under this section must· 
be deposited in the county's unorganized territory fund. 
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Sec. 23. 36 MRSA §1752, sub-§l1, 'i)B, as amended by PL 2007, c. 627, §42 
and affected by §96 and amended by c. 693, § 14, is repealed and the following enacted in 
its place: ' 
8. "Retail sale" does not include: 
(1) Any casual sale; 
(2) Any sale by a personal representative in the settlement of an estate unless the 
sale is made through a retailer or the sale is made in the continuation or operation 
of a business; 
. (3) The sale, to a person engaged in the business of renting automobiles, of 
automobiles, integral pmis of automobiles or accessories t6 automobiles.' for 
rental or for use in an automobile rented on a shOli-tenTI basis;' 
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(4) The sale, to a person engaged in the business of renting video media and 
video equipment, of video media or video equipment for rental; 
(5) 
The 'sa-le, to a person engaged in the business of renting or leasing 
automobiles. of automobiles for rental or lease for one year or more; 
(6) The sale, to a person engaged in the business of providing cable or satellite 
television services, of associated equipment for rental or lease to subscribers in 
conjunction with a sale of extended cable or extelided satellite television services; . 
(7) The sate; to a person engaged in the business of renting furniture or audio 
media and audio equipment, of furniture, audio media or audio equipment for 
rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 
11-105; 
(8) The sale of loaner vehicles to a new vehicle dealer licensed as such pursuant 
to Title 29-A, section 953; 
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(9) The sale of automobile repair parts used in the performance of repair services 
on an automobile pursuant to an extended service contract sold on or after 
September 20, 2007 that entitles the purchaser to specific benefits in the service 
ofthe automobile for a specific duration; 
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(10) The sale, to a retai ler that has been issued a resale celiificate pursuant to 
section 1754-8, subsection 2-8" or 2~C, oftangible personal property for resale in 
the form of tangible pe'rsonal property, except resale as a casual sale; 
(11) The sale, to a retailer that has been issued a resale celiificate pursuant to 
section 1754-B, subsection· 2-B or 2-C, of a taxable service for resale, except 
resale as a casual sale; 
(12) The sale, to a retailer that is not required to register under section 1754-B, 
of tangible personal propeliy for resale outside the State in the form of tangible 
personal propeliy, except resale as a casual sale; 
(13) The sale, to a retailer that is not required to register under section 1754~B, 
of a taxable service for resale outside the State, except resale as a casual sale; or 
(14) The sale of repair parts used in the performance of repair services on 
telecommunications equipment. as defined in section 2551, subsection 19 
pursuant to an extended service contract that entitles the purchaser to specific 
benefits in the service of the te'lecommunications equipment for a specific 
duration. 
Sec. 24. 36 MRSA §1760, sub-§5-A, as amended by PL 1975, c. 623, §57, is 
fmiher amended to read: 
5-A. Prosthetic devices. Sale of prosthetic aids, hearing aids or eyeglasses and 
artificial devices designed for the use of a pal1icu1ar .indi.vidual to correct or .alleviate 
physical incapacity; and sale of crutches and wheelchi:tirs for the use of in"fdirlc: nnn 
criooled sick, injured or disabled persons and not for i'ental. 
Sec. 25. 36 MRS A §1760, sub-§8, ~, as amended by PL 1987, c. 798, § 1, is 
further amended to read: 
B. Internal combustion engine fuel, as defined in section 2902, bought and used for 
the purpose of propelling jet or turbojet engine aircraft; and 
Sec. 26. 36 MRSA §1760-B, as amended by PL 1997, c. 526, § 14, is repealed. 
Sec. 27. 36 MRSA §2520, as repealed and replaced by PL 1973, c. 727, § 10, is 
amended to read: 
§2520. Re.ciprocaJ contracts of indemnity 
Every attorney-in-fact of a reciprocal insurer by or through whom are issued policies· 
or contracts of indemnity by a reciprocal insurer as identified defined in Title 24-A, 
chapter 5 section 402, subsection 1, in lieu of all other taxation, state, county or 
31mu'nicipal, in this State, shall pay a tax at the rate of 2% on gross premiums or deposits 
. actually received during the year after deducting .amounts that are actually returned to . 
policyholders as tlie unused part of stl6fl- !! premium or deposit, or such Bart as rna'.' be 
credited on the renewal Or extension of the indemnitY, 
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Sec. 28. 36 MRSA §2551, sub-§3, as enacted by PL 2003, c .. 673, Pt. Y, §25 and 
affected by §29, is amended to read: 
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3. Fabrication services. "Fabrication services" means the production of tangible 
personal property for a consideration for a person who furnishes, either directly or 
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indirectly, the materials used in that production. "Fabrication services" does not include 
the production of tangible personal property if a sale to the consumer of the tangible 
personal property so produced 'would be exempt or othervrise not E,lubject to tax under Part 
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• Sec. 29. 36 MRSA §2552, sub-§l, tp, as amended by PL 2007, c. 539, Pt. DOD, 
§6, is further amended to read: 
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I. Community BUpp.ort services for persons with mental retardation or autism; aOO 
,Sec. 30. 36 MRSA §2552, sub-§l, Ef[J, as amended by PL 2007, c. 539, Pt, DOD, 
§7 and c. 627, §67, is repealed and the following enacted in its place: 
1. Home support services; and 
Sec. 31. 36 MRS A §2552, sub-§l, EfrK, as repealed by PL 2007, c. 539, Pt. DOD, 
§8 and amended by c. 627, §68, is repealed. 
Sec. 32. 36, MRSA §2557, sub-§33, as 'enacted by PL 2007, c. 627, §74, IS 
amended to read: . 
33. 
International 
telecommunications 
tele<;:ommunications service; aOO' 
service. 
Sales 
of 
international 
Sec. 33. 36 MRS A §2557, sub-§34, as enacted by PL 2007, c. 627, §75, IS 
amended to read: 
34.' Interstate telecommunications service. Sales of interstate telecommunications 
service~~ 
Sec. 34. 36 MRSA §2557, sub-§35 is enacted to read: 
35. Certain fabrication services. The production of tangible personal property if a 
sale to the consumer of that tangible personal propelty would be exempt or otherwise not 
subject to tax under Pali 3; and' 
' .  
. Sec. 35. 36 MRSA §2557, sub-§36 is enacted to read: 
36. Fuel used at a manufacturing facility. Ninety-five percent of the sale price of 
fabrication services for the production of fuel for use at a manufacturing facility as 
defined in section 1752, subsection 6-A. 
Sec. 36. 36 MRSA §2902, as amended by PL 2007, c. 438, §§63 and 64, is further 
amended to read: 
I 
§2902. Definitions 
The terms As used in this chapter shall be construed as follov~'s:, unless the context 
. 
otherwise indicates, the following terms have the following meanings. 
rag!;! 10 - 124 LR0350(O 1 )-1 
1. Distributor. "Distributor" means aHy .1! person, as defined, importing that imports 
internal combustion engine fuel int.o the State~ or producing, refining, manufacturing or 
compounding 'Nithin produces. refines. manufactures or compounds internal combustion 
engine fuel in the State, or purchasing within purchases internal combustion engine fuel 
in the State, principally for resale to others in bulk, internal corribustion engine fuel as 
Refined. "Distributor" includes licensed distributors ·and registereddistributors. 
1-A. Exporter. "Exporter" means any .1! p(!rson, as defined, other than that is not a 
licensed distributor,-wfte that purchases internal combustion engine fuel in this State and 
exports that fuel from the State, or causes that fuel to be exported such fuel from the 
State, other than in fuel tanks attached to and forming a part of a motor vehicle :mAlIsed 
for use in the engine of samJbat motor vehicle. 
roB. Importer. "Importer" means any .1! person, as defined, other than that is not a 
licensed distributor, \vh'erever resident or located,importing that imports internal 
combustion engine fuel or causing causes intern'al combustion engine fuel to be imported 
for sale or for use in this State, with the e)(ception set forth, any internal combustion 
engine fuel as defined other than in fuel tanks attached to and forming a part of a motor 
vehiCle for use in the engine of that motor vehicle. 
1-C. Gross gallons. 
"Gross gallons" means actual measured gallons of internal 
combustion engine fuel received, sold or, used, without adjustment for temperature or 
barometric pressure. 
2. 
Internal eombustion engine. 
"Internal combustion engine" shall mean any 
engine operated by meplosion or quick burning tllerein of gasoline. benzol or other 
oroduct. 
. 
3. Internal combustion engine fuel. "Internal combustion engine fuel", except as 
respects fuel used for propelling aircraft, shall mean means all products that are 
. commonly or commercially known or sold as gasoline, including casinghead and 
absorption or natural gasoline, regardless of their classification or .uses; and inCludes any 
liquid'fuel that is prepared, advertised, offered for sale or sold for use as or commonly 
and commercially used as a fuel in spark.:ignition internal' combustion engines, \vhich 
when subjected .to distillation in accordance with the statldard method of test for 
distillation of gasoline, naphtha, kerosene and similar petroleum products (American 
Society for Testing Materials' Designation D 86) show not less than 10% distilled 
(recovered) belo,;,'" 347
Fahrenheit (175
Centigrade) and not less than 95% distilled 
(recovered) below 464
Fahrenheit (240
Centigrade) that has greater than 90%' of the 
energy potential of an equivalent volume of gasoline, determined by the number of 
British Therma] Units in a standard volume. The term "internal "Internal combustion 
engine fuel" sHaU does not include commercial solvents or naphthas which distil, by. 
American Society for Testing Materials Method D 86, nor more than 9% at 176
Fahrenheit and ',vhich have a distillation range of 150
Fahrenheit, or less, or liquefied 
gases wfl.i€.h. that would not exist as liquids at a temperature of 60
Fahrenheit and a 
pressure of 14.7 pounds per square inch absolute. 
"Internal combustion engine fuel" shall mean includes any motor fuel that is used or sold 
for use in the propulsion of aircraft. 
Page II - 124LR0350(Ol)-1 
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3-A. Licensed distributor. "Licensed distributor" means a distributor that is not a 
registered distributor. 
3-B. 
Registered distributor. 
"Registered distributor" means a distributor that 
purchases or imports only internal combustion engine fuel on which the tax imposed by 
this chapter has been paid to a licensed distributot and that makes sales of internal 
combustion engine fuel only to retail dealers or directly into the fuel tanks of motor 
vehicles. 
' 
4-A. Retail dealer. "Retail dealer" means' a person that operates in this State a place 
" 
of business from which internal combustion engine fuel is sold at retail and delivered 
directly into the fuel tanks of motor vehicles or watercraft. A distributor or wholesaler is 
II 
a retail dealer only with respect to internal combustion engine fuel delivered into a retail 
storage tank operated by that distributor or wholesaler or into a retail storage tank Qf a 
consignee or commission agent. 
'5. Terminal. HTerminal" means a storage and distribution facility for internal 
combustion engine fuel supplied by a pipeline or marine vessel, or both, that has been 
registered as a qualified terminal by the Internal Revenue Service. 
' 
6. 
Wholesaler. 
"Wholesaler" means a persol1 that owns, operates or otherwise 
controls a terminalor a person that holds the internal combustion engine fuel inventory 
position in a terminal when that person has a contract with the terminaL operator for the 
use of storage facif.ities and terminal services for fuel at the terminal. 
Sec. 37. 36 MRSA §2903, sub-§l-C, as enacted by PL 200 I, c. 688, §3, IS 
amended to read: ' 
1-C. Inventory tax. On the date that any increase in the nite of tax imposed under 
this chapter takes effect, an inventory tax is imposed by this subsection upon all internal 
' combustion engine fuel that is held in inventory by 'a distributor, importer, wholesaler or 
retail dealer as of the end of the day prior to that date with respect to which the tax 
imposed pursuant to subsection I has been paid. The inventory tax is computed by 
multiplying the number of gallons of tax-paid fuel held in inventory by the difference 
between the tax rate already paid and the new tax rate. 
Distributors, impOliers, 
wholesalers and retail de;;tlers that hold 5tl-€fi tax-paid inventory shaH make payment of 
the inventory tax on or before the 15th day of the next calendar month, accompanied by a 
form p~escribed and furnished by the State Tax Assessor. In the event of a decreas~ in 
the tax rate, the distributor, impOlier, wholesaler or retail dealer is entitled to a refund or 
credit, which must be claimed on a form designed and furnished by the assessor. This 
sectiori subsection does not apply to internal combustion engine fuel that is purchased or 
used for the purpose of propelling jet or turbOjet engine aircraft. 
' Sec. 38. 36 MRSA §2903,. sub-§4, ~, as amended by PL 2007, c. 627, §78, is 
fllliher amended to read: 
D. 
Bought or used to propel aft a jet engine aircraft in international flights. For 
purposes of this paragraph, fuel is bought or lIsed to propel aft a jet engine aircraft in 
an international flight if either the point of origin of the flight leg immediately 
preceding the delivery of the fuel into the fuel tanks of the jet engine aircraft or the 
destination point of the flight leg immediately following the delivery of the fuel into 
the fuel tanks of the jet ehgine aircraft is outside the United States; 
Sec~ 39. 36 MRSA §2904, as amended by PL 2007, c. 407, §2, is repealed and the 
following enacted in its place: 
§2904. Certificates 
Every person· that is a distributor, wholesaler, importer· or exp0l1er of internal 
combustion engine fuel in the State shall file an application for a cel1ificate with the State 
Tax Assessor on forms prescribed and fUl1lished by the assessor. A person may not sell 
or distribute internal combustion engine fuel until the cel1ificate is furnished by the 
assessor and displayed as required by this section. One copy of the certificate, certified 
by the assessor, must be displayed in each place of business of the person. If the assessor 
has reasonable cause to believe that the person has ceased to do business or that the 
person has violated this chapter or rules adopted under this chapter, the assessor may on 
reasonable notice to the person suspend the person's certificate until satisfied to the 
contrary. A person whose certificate has been suspended may not act as a distributor, 
wholesaler, imp0l1er or exp0l1er until the certificate is restored by the assessor. 
A 
suspended certificate must be surrendered to the assessor upon request. 
Notice is 
sufficient if sent by mail and addressed to the person at the address designated in the 
cel1ificate. The suspension is subject to review as provided in section 151. 
Sec. 40. 36 MRS A §2904-A, as enacted by PL 2007, c. 407, §3, is repealed . 
. Sec. 41. 36 MRSA §2906, sub-§l, as amended by PL 2007, c. 438, §66, IS 
further amended to read: . 
. 
1. Monthly reports. Every licensed distributor, wholesaler, imp0l1er and exporter 
shall file with the assessor State Tax Assessor on or before the 21 st day of each month a 
retul1l stating the number of gross gallons of intel1lal combllstion engine fuel received, 
sold and used in the State by that licensed distributor, wholesaler, importer or exporter 
during the preceding calendar month. The retul1l must be filed on a form prescribed and 
fUl1lished by the assessor and must include any other information reasonably required by 
the assessor. 
Sec. 42. 36 MRSA §2906, sub-§2, as amended by PL 2007, c. 438, §67, IS 
further amended to read: 
. 
2. Payment of tax. At the time of filing the return required by this section, each 
licensed distributor I;lnd importer shall pay to the assessor the tax imposed by section 
2903 on each gallon reported as sold, distributed or used .. 
Sec. 43. 36 MRS A §2906, sub-§3, as repealed and replaced by PL 1997, c. 738, 
§5, is amended to read: 
3. Allowance for certain losses. An allowance of not more than 1/2 of 1 % from the 
amount of intel1lal combustion engine fuel received by a licensed distributor, plus 1/2 of 
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·10 
. 
% on all transfers in vessels, tank cars or full tank truck loads by a licensed distributor in 
the regular course of the licensed distributor's business from one of tile licensed 
. distributor's places of business to another within the State, may be granted by the assessor 
to cover losses sustained by the licensed distributor through shI;inkage, evaporation' or 
handling. The total .allowance for these losses must be supported by documentatiOn 
satisfactory to the assessor and I:nay not exceed 1 % of the receipts by the licensed 
distributor. The allowance .must be calculated on an annual basis. A further deduction 
may not be allowed unless the assessor is satisfied upon definite proof submitted to the 
assessor that a fllIiher d~duction should be allowed for a loss sustained through fire, 
accident or some unavoidable calamity. 
Sec. 44. 36 MRSA §2906, sub-§5, as amended by PL 2007, c. 438, §69, -is 
repealed. 
.. Sec. 45. 36 MRS A §2907 is repealed and the following enacted in its place: 
§2907. Application of tax in special cases 
A person that receives internal combustion engine fuel under circumstances that 
preclude the collection of the tax imposed under this chapter by the distributor, other than 
internal combustion engine fuel brought into the State in the ordinary standard equipment 
fuel tank attacIled to' and forming a part of a motor vehicle for use in the engine of that 
motor vehicle, and that sells or uses that internal combustion engine fuel in ,this State is 
subject to the tax imposed by section. 2903 and to the requirements of section 2906, 
subsections 1 and 2 on the same basis as a licensed distributor. 
Sec. 46. 36 MRSA §3202, sub-§2-E is enacted to read: 
2-E. Licensed supplier·. "Licensed supplier" means a supplier that is not a registered 
supplier. 
. 
Sec. 47. 36 MRSA §3202, sub-§5-D is enacted to read: 
5-D. Registered supplier. "Registered supplier" means a supplier that purchases or 
imports only distillates on which the tax imposed by this chapter has been paid to a 
licensed supplier and that makes sales of distillates only to retail dealers or directly into 
the fuel tanks of motor vehicles.' A registered supplier may also purchase and sell dyed 
fuel. 
Sec. 48. 36 MRS A §3202, sub-§7, as amended by PL 1999, c. 733, §2 and 
affected by § 17, is repealed and the following enacted in its place: 
7. Supplier. "Supplier" means a person that imports distillates into the State, exports 
distillates froni the State, produces, refines, manufactures or compounds distillates in the 
State or purchases distillates in the State, principally for resale to others in bulle 
"Supplier" includes licensed suppliers and registered suppliers. 
Sec. 49. 36 MRSA §3203, sub-§5, as amended by PL 2007, c. 627, §81, is 
fllIiher amended to read: 
5. Allowance for ·certain losses of undyed distillates. An allowance of not more 
than 114 of 1 % from the amount of undyed distillates received by a licensed supplier, plus 
of 1 % on all transfers in vessels, tank cars .or full tank truck loads by the licensed 
supplier in the regular course of business from one of the licensed supplier's places of 
business to another of the licensed supplier's places of-business within the State, may be 
allowed by the assessor tocoverthe loss through shrinkage; evaporation or handling 
sustained by the licensed supplier. The total allowance for these losses must be suppO\ied 
by documentation satisfactory to the assessor and may not exceed 112 of 1 % of the 
receipts by the licensed supplier. The allowance must be calculated on an annual basis. 
A further deduction may not be allowed. unless the' assessor is satisfied upon definite 
proof submitted to the assessor that· a further deduction should be allowed for a loss 
sustained through fire, accident or some unavoidable calamity. 
Sec. 50. 36 MRSA §3203:-C, as amended by PL 2003, c. 390, § 15, is further 
amended to read: 
§3203-C. Inventory tax 
On the date that any increase in the rate of tax imposed under this chapter takes 
effect, an inventory tax is imposed upon all distillates that are held in inventory by a 
supplier, wholesaler or retail dealer as of the end of the day prior to that date on whiCh the 
tax imposed by section 3203, subsection subsections 1 and I-B has been paid., The 
inventory tax is computed by. multiplying the number of gallons of tax-paid fuel held in 
inventory by the difference between the tax rllte already paid and the new tax rate. 
Suppliers, wholesalers and retail dealers that hold such tax-paid inventory shall make 
payment of the inventory tax on or before the 15th day .of the next calendar month, 
accompanied by a form prescribed and furnished by the State Tax Assessor, In the event 
of a decrease in the tax rate, the supplier, wholesaler or retail dealer is entitled to a refund 
or credit, which must be claimed on a form designed and furnished by the assessor. .. 
Sec. 51.. 36 MRSA ,§3204, as amended by PL 1999, c. 733, § 7 alid affected by 
§ 17, is further amended to read: 
. §3204. Licenses 
Every person operating as a supplier, wholesaler or retailer in the State,. other than 
those who qualify under section 3205, shall file an application for ~ certificate with the 
State Tax Assessor on forms prescribed and fi.lrnished by the asse.ssor, which contain the 
name under whichthe person is transacting business within the State, the placeor places 
of business, location of distributing stations, agencies of the person, the names and 
addresses of the several' persons constituting the finn or partnership, ancl, if a corporation, 
its corporate name and the names and addresses of its principal officers and agents \\'ithin 
. the State. A person may not sell or distribute any special fuel until the celiificate is 
. 38 
furnished by the State Ta)( Assessor assesso"r and displayed as required by this section. 
One copy of each suc.h the certificate, certified by the State Ta~( Assessor assessor, must 
be displayed in each place of business of the person. The State Tm( Assessor, having If 
the assessor has reasonable cause to believe that the person has ceased to do business or 
that the person has violated this chapter or the rules adopted under this chapter or has 
failed to appear in court for any violation of this chapter, the assessor may on reasonable 
) 
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notice to the person suspend the person's certificate until satisfied to the contrary. Insuch 
case, the A person whose celiiticate has been suspended 'may not act as a supplier, 
wholesaler or'retailer until the celiificate is restored by the State Ta), Assessor, either of 
the assessor's o'""n initiathte or at the person's request, and upon the State TilX Assessor 
being satisfied that cause for suspension no .longer e)tists, or upon order of court assessor. 
In case of that suspension, all Suspended certificates must at once be surrendered to the 
State Tax Assessor assessor upon request. This revocation The suspension is reviewable, 
in accordance with section 151. 
' 
Sec. 52. 36 MRSA §3205, as amended by PL 2001, c. 396, §29, is repealed. 
Sec. 53. 36 MRS A §3209, sub-§l, as amended by PL 2007, c. 438, §80, IS 
further amended to read: 
1. Suppliers and wholesalers. Every licensed supplier and wholesaler shall file on 
or before the last day of each month a return with the State Tax Assessor stating the gross 
gallons of distillates received, sold and used in this State by that licensed supplier or 
wholesaler during the preceding calendar month, on,a form prescribed and furnished by 
the asse,ssor. The return must include any flllther information reasonably required by the 
assessor. 
At the time of filing the return required by this subsection, each licensed 
supplier or wholesaler must pay to the assessor a tax as prescribed in section 3203 upon 
each gallon repolied as a taxable sale or as taxable gallons used. 
Sec. 54. 36 MRSA §3209, sub-§5, as amended by PL 2007, c. 438, §80, IS 
. 
rep~aled. 
Sec. 55. 36 MRS A §3211 , as amended by PL2007, c.438, §82, is further 
amended to read: 
§3211. Cancellation of licenses, registrations 
If any ~ person licensed or registered under this chapter files a false report of the 
information required by this chapter, or fails, refuses or neglects to file a return required 
by this chapter or to pay the full amount of the tax as required by this chapter or is in 
violation of,the registration certificate as prescribed in section 3205, the State Tax 
Assessor may cancel the license or registration and ne#fy give notice to that person in 
'""ritiAl! of the cancellation bv registered mail to the last kno't'm address of that person. 
Upon receipt of a written request from any ~ person licensed or registered under this 
chapter to cancel the license or registration issued to that person, the assessor may cancel 
that license or registration effective 30 days from the date of the written request, in which 
event the license or registration certificate issued to that person must be surrendered to ' 
the assessor. If; upon investigation, the assessor finds determines that any ~ person to 
whom a license or registration has been issued under this chapter is no longer engaged in 
the sale or use of special fuel and has not been so engaged for a period of 6 months, the 
assessor may cancel that license ,or registration by giving that person 30 days' notice of 
the cancellation mailed to the last Imo't'm address of that person, in which event the 
license or registration certificate issued to that person must be surrendered to the assessor. 
, 1 
Sec. 56." 36 MRSA §3212, as amended by PL 2007, c. 438, §83, is further 
amended to read: 
' 
§3212. Discontinuance 
When 'a supplier, reta'ller or user person ceases to engage in business as a supplier, 
wholesaler, retailer or user of special fuel within this State, that supplier, retailer or user " 
person shall notify the State Tax Assessor in writing within 15 days after discontinuance. 
, All taxes, penalties and interest under this chapter become due and payable concurrently 
8' 
with that discontinuance. The supplier, retailer or user person shall file a return and pay 
all the taxes, interest and penalties and surrender to the assessor the license or registration 
certificate issued to that supplier, retailer or user person by the assessor. 
' 
Afly A person vioiating that violates any of the provisions of this section commits a 
Class E crime. 
Sec. 57. 36 MRS A §3214, as amended by PL 2007, c. 438, §84, is ,ful1her 
amended to read: 
' 
§3214. Credit for tax paido~ worthless accounts 
, The tax paid on sales made on credit and reported by a licensed supplier, wholesaler 
or retailer pursuant to section 3209 that are found to be worthless and actually charged off 
may be credited upon the tax due on a subsequent return, but if any such. If those 
accounts are thereafter subsequently collected by the licensed supplier, wholesaler or 
retailer, a tax must be paid upon the amounts so collected. The credit must be reported on 
the return for the month in which the charge-off occurred. 
Sec. 58. 36 MRS A §3321, sub-§l, as amended by PL 2007, c. 650, §3, is further 
amended to read:' 
' 
, 
1. Generally. Beginning in 2003, and each calendar year thereafter, the, excise tax 
imposed upon internal combustion engine fuel pursuant to section 2903, subsection 1 and 
the excise tax imposed upon distillates pursuant to section 3203, subsections 1 and I-B 
are subject to an annual rate of adjustment pursuant to this section. On 0\; about February 
15th of each year, the State Tax Assessor shall calculate the adjusted rates by multiplying 
the nlt~s in effect on the calculation date by an inflation index as computed as provided in 
subsection 2. The adjusted rates must then be rounded to the nearest 1/.1 0 of a cent and 
' become effective on the first day of July immediately following the calculation. The 
assessor shall publish the annually adjusted fuel tax j'ates and shall provide all necessary 
33' 
forms and reports to sliPpliers, distributors and retail dealers. 
,;' 
Sec. 59.' 36 MRSA §3321, sub-§3, as enacted by PL 2001, c., 688, §8, IS further 
amended to read: 
3. 
Exclusion. 
This section does not apply to internal combustion engine fuel 
purchased or used for the purpb;;e of propelling.jet or turbOjet engine aircraft. 
' 
Sec. 60. 36 MRSA §4901, sub-§6, as,enacted by PL 2005, c. 396, §8, is repealed. 
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Sec. 61. 36 MRSA §5111, su b-§4, as amended by PL 1999, c. 521, Pt. B, § 1 and 
affected by § 11, is fmiher amended to read: 
4. Additional tax. Additionally, a tax is imposed foreach taxable year beginning on 
or after januaJ)' 1, 1989, on the Maine adjusted gross income of every nonresident 
individual. The amount of the tax equals the tax computed under this section and chapter 
805, as if the nonresident individual were a resident individual, multiplied by the ratio of 
the nonresident individual's Maine adjusted gross income, as defined in section 5102, 
subsection 1-C, paragraph B, to the nonresident's nonresident individual's entire federal 
adjusted gross income, as modified by section 5122. 
Sec. 62. 36 MRSA§5111, sub-§5, as enacted by PL 1991, c: 528, Pt. ZZ, § 1 and 
affected by §4 and Pt. RRR and enacted by c. 591, Pt. ZZ, § 1 and affected by §4, is 
repealed. 
. 
Sec. 63. 36 MRSA §5122; sub-§l, errO, as amended by PL 2003, c. 20, Pt. II, § 1, 
is repealed. 
Sec. 64. 36 MRSA §5122, sub-§l, W, as amended by PL 2003, c. 20, Pt. II, § 1, 
is repealed. 
. 
Sec. 65. 36MRSA §5122, sub-§l, errZ, as enacted by PL 2007, c. 539, Pt. CCC, 
§4, is amended to read: 
. Z. For income. tax years beginning on or after January 1, 2008, the amount of any 
qualified state and local tax benefit and any qualified payment excluded from gross 
income pursuant tothe Code, Section -H9Eb1139B; and 
Sec. 66. 36 MRSA §5122, sub-§2, ~AA, as corrected by RR 2007, c. 2, §23, is 
amended to read: 
AA. For taxable years beginning on or after January 1, 2009, an amount equal to the 
net decreaS'e in the depreciation deductions allowable under sections 167 and 168 of 
the Code that would have been applicable to that property had the 50%. bonus 
depreciation deduction under Section 103 of the Economic Stimulus Act of 2008, 
Public Law 110-185 not been claimed with respect to such property for which an 
addition was required under subsection 1; paragraph AA in a prior year. 
Upon the taxable disposition of propeliy to which this paragraph applies, the amount 
of any gain or loss includable in federal adjusted gross income must be adjusted for 
Maine income tax purposes by an amount equal to the difference between the. 
addition modification for such propeliy under subsection 1, paragraph AA and the 
subtraction modifications allowed pursuant to this paragraph. 
The total amount of subtraction c·laimed for property under this paragraph for all tax 
years may not exceed the addition modification under subsection 1, paragraph AA for 
the same property; ana 
Sec. 67. 36 MRSA §5122, sub-§2, ~B, as reallocated by RR 2007, c. 2, §24, is 
amended to read: 
7' 
BE. The amount of pension benefits to the extent iricluded in federal adjusted gross 
income under a military retireme!lt plan as defined in paragraph M that exceed the 
amount of military retirement plan pension benefits deducted under paragraph M and 
that are received by a person who practices as a licensed dentist in this State for an ' 
average of at least 20 hours per week during ~he tax year and who accepts patients 
who receive benefits under the MaineCare program administered und~r Title 22; 
chapter 8557; and 
Sec. 68. 36 MRSA §5122, sUlb-§2, ~CC is enacted to read: 
Cc. To the extent included in federal adjusted gross income, an amount constituting 
benefits received under' a municipal property tax assistance program established 
pursuantto section6232; subsection I-A. ' 
' 
' 
Sec. 69. 36 MRSA §5175, as amended by PL 2003, c. 390, §37, is repealed. 
Sec. 70. 36 MRSA §5175-A is enacted to read: ' 
14§5175-A. Maine taxable income of'a nonresident estate or trust, 
The Maine taxable income of a nonresident estate or trust is equal to .its share in that 
portion of the distributable net income of the estate or trust that is derived' from or 
connected with sources in this State, including items of income, gain, loss arid deduction 
from another estate or trust of which the first estate or trust is a beneficiary, increased or 
reduced by the amount of any' items that are recognized for federal income tax purposes 
but excluded from the distributable net income of the estate or trust and modified by the 
addition or subtraction of its share of the fiduciary adjustment determined under section 
5164, less the amount of the deductioil for its federal exemption. The source of items of 
income, gain, loss or deduction must be determined in accordance with section 5142 as if 
the estate or trust were a nonresident individual. 
' 
Sec. 71. 36 MRSA §5176, as amended byPL 1995, c. 639, § 19, is repealed and 
the following enacted in its place: , 
' 
§5176. Share of a nonresident estate, trust or beneficiary in income from sources in 
this State 
1. General rule. The share of a nonresident estate or trust in items of income, gain,' 
loss and deduction derived from or connected with sources in this State that are included 
in the distributable net income of the nonresident estate or trust and the share for purposes 
32' 
of section 5142 of a nonresident beneficiary of an estate or trust in items of income, gain, 
loss and deduction of that estate or trust must be determined pursuant to this subsection. 
A modification may not be made under this section that has the effect of duplicating an 
item already included in the distributable net income of the estate or trust 
A. To the extent the modifications relate to items of income, gain, loss and deduction 
derived from or connected with sources in this State that are included in the 
distributable net income of a nonresident estate or trust, the modifications provided 
under section 5122 must be added to or subtracted from the amount of those items. 
) 
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B.' 
The amount determined undei' paragraph A must be allocated among the 
nonresident estate or trust and its beneficiaries, including. solely for the purpose of 
this allocation. resident beneficiaries, in proportion to their respective shares in the 
distributable net income of the estate or trust. The amounts so allocated have the 
same character as for federal income tax purposes: An item that is not characterized 
for federal income tax purposes is deemed to have been realized directly from the 
source from which it was realized by the estate or trust or incurred in the same 
manner as it was incurred by the estate or trust. 
C:lfthe estate or trust has no distributable net income for the taxable year, the share' 
of each' beneficiaIyin the net amount determined under paragraph A must be in 
propOIiion to thebeneficiaIY's share of the estate or trust income for the taxable year 
that is required to be distributed currently and any other income that is actually 
distributed in that taxable year. The balance of the net amount must be allocated to, 
the estate or trust. 
2. Alternate methods. The State Tax Assessor may authorize, upon the taxpayer's 
written request, the use of another method of determining the respective shares of the 
beneficiaries aI'Id of the estate or trust in its income derived from sources in this, State, and 
in the modifications related to that income, that the assessor determines to be appropriate 
and equitable. 
Sec. 72. 36' MRSA §5200-A, sub-§l, G[fO, as amended by PL 2003, c. 20, Pt. II, 
§3, is repealed. 
' 
. 
Sec. 73. 36 MRSA §5200-A, sub-§l, W, as amended by PL 2007, c. 539, Pt. 
CCC, § 13, is repealed. 
Sec. 74. 36 MRSA §5203-B, as amended by PL 2003, c. 673, Pt. JJ, §2 and 
affected by §6, is repealed. 
Sec. 75. 36 MRS A §5203-C, sub-§l, 'W, as enacted by PL 2003, c. 673, Pt. JJ, 
§3 and affected by §6, is amended to read: 
F. 
"Regular income tax" means: 
(1) 
For resident, individuals, estates and trusts, the amount derived by 
. rTIultiplyingthe applicable tax rate or rates by taxable income underseetion 5121 
or 5163; 
(2), For nonresident individuals, estates and trusts, the amount derived by 
multiplying the applicable tax rate or rates by taxable income under section 5121 ' 
or ~ 
5175-A, the result of which is adjusted for nonresident individuals in 
accordance with section 5111, subsection 4; or 
(3) For taxable corporations, the amount derived by multiplying the applicable 
tax rate or rates against Maine net income under section 5102, subsectiori 8. 
Sec. 76. 36 MRSA §5217-D, sub-§5, as enacted by PL 2007, c. 469, Pt. B, § 1, is 
amended to read: 
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5. Conditions for an employer claiming the credit.. A taxpayer constituting an 
employer may claim the· credit under this section under the following circumstances. The 
employer may undertake to make partial or full loan payments directly to the relevant 
lender or lenders .on behalf of a qualified employee, having taken reasonable steps to. 
ascertain that the employee is in fact a qualified emplbyee, and may claim a credit based 
on amounts that came due and were paid by the employer during the term of employment. 
To receive the credit, the employer mpst retain for 5 years any proof of eligibility that the 
employee or independent contractor provides. 
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The employer may claim a credit-for the amount that the qualified employee could have 
claimed during any months when the qualified employee was employed, had the qualified 
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employee made the partial or full loan payments instead, under conditions where the 
qualified employee had sufficient income to claim the full credit for the taxable year. If 
the qualified employee is employed only on a part-time basis, the employer may claim a 
. credit only up to half of the total that the qualified employee could have claimed had the 
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qualified employee made all ·payments and earned sufficient income to claim the· full 
credit for the taxable year, but the amount the employer claims must still be based on 
. amounts actually paid. 
An employei" Claiming this credit on behalf of a qualified employee fora taxable year 
may not simultaneously claim a credit under section 5219 V on the behalf of the same 
employee. 
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Sec. 77. 36 MRSA §5220, sub-§4, ~A,as amended by PL 2005, c. 618, §15 and 
22affectedby§22, is further amended to read: 
A. 
Any Maine taxable income as determined under section 5175. subsection 2 
5175-A; 
Sec. 78. 36 MRSA§5334, as repealed and replaced by PL 1979, c. 701, §34, is 
amended to read: 
. 
§5334. Venue 
The failure to do any act required by Of under A violation of this Part shall be i.§ 
deemed an-aet to have been committed in part at the principal office of the assessor in 
Kennebec County. Any prosecution under this Part Prosecution may be conducted 
31orought in any county where the person or corporation to whose liability the proceeding 
relates resides or has a place of business, or· in any county, in which such crime is .the 
violation was committed. 
Sec. 79. 36 MRSA §6209, sub-§4, as enacted by PL 2007, c. 700, Pt. A, §4, is 
amended to read: 
4. Income eligibility adjustment. Beginning March 1,2009, the State Tax Assessor 
. shall annually. multiply the household income eligibility adjustment factor by the. 
maximum income eligibility amounts specified in section 6207, subsection 2 2-A, as 
previously adjusted. The result must be rounded to the nearest $50 and applies to the 
application period beginning the next August 1st. 
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Sec. 80. 36 MRSA §6753, sub-§12, as amended by PL 2005, c. 351, §23 and 
affected by §26, is fmiher amended to'read: 
. 
12. Qualified employee. "Qualified employees employee" means ~ new, full-time 
employees employee hired in this State by a qualified business aOO~ for whom a 
retirement program subject to the Employee Retirement Income Security Act of 1974, 29 
United States Code, Sections 101 to 1461, as amended, Chapter 18 and group health 
insurance are provided, and whose income derived from employment with the applicant, 
calculated on a calendar year basis, is greater than the most recent annual per capita 
personal income in the county in which the qualified employee is employed and '.vhose 
stare, as long as Maine. income tax withholding taxes· are attributed to the qualified 
employee is subject to reimbursement to the qualified business under this chapter .. 
"Qualified employees employee" does not include employees an employee who is shifted 
to a qualified business from·an affiliated business. The commissioner shall determine 
whether a shifting of employees has occurred. 
. 
Sec. 81. 36 MRSA §6754, sub-§l, ~, as amended by PL 2003,c. 6·88, Pt. D, 
§6, is further amended to read: 
. 
D. 
For qualified Pine Tree Development Zone employees, as defined in Title 30-A, 
section 5250-1, subsection 18, employed directly in the qualified business activity of 
a qualified Pine Tree Development Zone business, as defined in Title 30-A, section 
5250-1, subsection 17, for whom a certificate of qualification has been issued in 
accordance with Title 30~A, section 5250-0, the reimbursement under this subsection 
is equal to 80% of the withholdingtaxes withheld each year for which reimbursement 
is requested and attributed to those qualified employees for a 'period of no more than 
years. In no event may reimbursement under this subsection paragraph be paid for 
years beginning after December 31, 2018. 
. 
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Sec. 82. Retroactivity. That section of this Act that amends the Maine Revised 
Statutes, Title 10, section I 020,subsection 2, paragraph D applies retroactively to July 
18, 2008. That section of this Act that amends Title 36, section 2903, subsection 4,· 
paragraph D applies retroactively.to July 18, 2008. That section of this Act that amends 
TitIe.36, section 3203-C applies retroactively to July 18,2008. That section of this Act 
that amends Title 36, section 5122, subsection I , paragraph Z applies retroactively to tax 
years beginning on or after January 1,2008. That sectionofthisAct that enacts Title 36, 
section 5122, subsection 2, paragraph CC applies retroactively to tax years beginning on 
or after January 1,2008. 
SUMMARY 
This bill makes the following changes to the laws governing taxation. 
I. It corrects the source of funding for the Waste Motor Oil Revenue Fund to reflect 
changes enacted in the First Special Session of the 123rd Legislature. 
2. It repeals provisions relating to educational attainment and recruitment tax credits 
as required by Public Law 2007, chapter 539, Parts RR and SS, which repealed those 
credits. 
3. It repeals obsolete requirements relating to distributors of fuels and oils that have 
not been enforced for many years and references to those requirements. 
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·4. It clarifies that debts subject to collection by the State Tax Assessor pursuant to 
statutes outside of the Maine Revised Statutes, Title 36 are subject to the administrative 
provisions of Title 36. The proposed change reflects current administrative policy. 
5. 
It requires the production of books and records pertinent to a criminal 
investigation cif. certain tax-related . crimes. The proposed change. reflects current 
administrative policy. 
6. 
It adds administration of the bulk motor vehicle oil premium under Title 10, 
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section 1020 to the list of additional duties assigned to the State Tax Asse~sor. 
7. It amends the levy statutes to reflect changes enacted in the First Regular Session 
of the 123rd Legislature. 
.. It corrects citations to federal law. 
9. It repeals obsolete transitional provisions in theproperty tax law. 
10. It corrects internal references and repeals superfluous effective dates. 
11. It corrects spelling and grammatical errors. 
12. It corrects a conflict created by Public Law 2007, chapters 541 and 693, which 
a·ffected the same provision cif law, by incorporating changes made by both laws. 
13. 
It clarifies that repair parts used. in the performance of repair services on 
telecommunicatioris· equipment pursuant to an extended servic.e contract are not subject to 
sales tax. The proposed change reflects current administrative policy. It also corrects a 
conflict created by Public Law 2007, chapters 627 and 693, which affected the same 
provision of law, by incorporating changes made by both laws. 
14. It replaces obsolete tenninology. 
15. It eliminates redundant language. 
16. It repeals an unnecessary statute relating to renumbering-of sales tax exemptions. 
17. It clarifies a cross-reference. 
18. It relocates an exemption in the service provider tax law from the definitions 
section to the exemptions section: It also corrects a conflict created by Public Law 2007, 
chapters 539 and 627, which affected the same provision of law, by incorporating the 
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changes made by both laws. 
19. 
It enacts a partial exemption in the service provider tax law for fabrication 
services for the production of fuel for use at 1:1 manufacturing facility. The proposed 
change reflects current administrative policy. 
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20. It clarifies the distinction between licensed distributors and registered distributors 
under the gasoline tax la\\ and eliminates superfluous and archaic language in gasoline 
lax law definitions . 
21. ' It clarifies that the gasoiine inventory tax applies to, imp0I1ers and wholesalers.' 
The proposed change reflects current administrative policy. 
22. It restores language limiting the scope of the exemption for internal combustion 
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engine fuel used in inteI:national flights that was. inadvertently repealed by legislation 
enacted iil the First Special Session of the 123rd Legislature. 
23. It clarifies that gasoline' wholesalers must obtain and display a certificate issued 
by the State Tax Assessor. The proposed change reflects current administrative policy. 
24. It clarifies filing and tax payment requirenients peI1aining to licensed distributors 
and wholesalers of gasoline. 
'25. It clarifies that persollswho become subject to the gasoline tax in special cases 
are not considered as distributors but are subject to tax on the same basis as licensed 
distributors. 
26. It clarifies the distinction between licensed suppliers and registered suppliers 
under the special fuel tax law. 
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27. It clarifies that only licensed suppliers qualify for a shrinkage allowance under 
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the special fuel tax law. The proposed change reflects current administrative policy. 
28. It amends the statute imposing a special fuel inventory tax to reflect changes 
'enacted in the First Special Session of the 123rd Legislature; 
29. It clarifies that special fuel wholesalers must obtain ~nd display a certificate 
issued by the State Tax Assessor. The proposed change reflects current administrative 
policy. 
30. It clarifies filing and tax payment requirements pertaining to licensed suppliers 
and wholesalers of special fuel. 
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,31. It clarifies that ceI1ain requirements relating to discontinuance of business apply 
to wholesalers of special fuel. The proposed change reflects current administrative policy. 
32. It clarifies eligibility for a credit for tax paid on worthless accounts under the 
special fuel tax law. The proposed changes reflect current administrative policy. 
33. It repeals a superfluous definition in the milk handling fee law. 
'34. It clarifies imprecise language regarding the tax imposed on nonresidents and 
repeals a superfluous effective date. 
35. It repeals an obsolete statute that imposed an income tax surcharge for the 1991 
and 1992 tax years. 
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36. It corrects a provision that deals with the annual inflation adjustment to tl~e 
household income limits in the Maine Residents Property Tax Program to correct a cross-' 
reference. 
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37. It adds an income tax modification to exClude municipal property tax assistance 
program benefits under Title 36, section 6232, subsection I-A from taxable' income. The 
'proposed change reflects current administrative policy. 
38. It clarifies 'the computation of Maine taxable income of a nonresident estate or 
trust. 
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