An Act To Amend the Tax Laws
Maine Legislature, Session 124, LD 1540
Committee Amendment CA_A-SA_A_S514 (Senate)
Amends: 36 MRSA §1861-B

SENATE AMENDMENT" A " to COMMITTEE AMENDMENT "A" to H.P. 
1084, L.D. 1540, Bill, "An Act To Amend the Tax Laws" 
Amend the amendment by inserting after section 7 the following: 
'Amend the bill by inserting after section 4 the following: 
'Sec. 5. 36 MRSA §1861-B is enacted to read: 
§1861-B. Offset of use tax 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Customer" means a person from whom sales tax was erroneously collected for 
the lease 01' rental of tangible personal property. 
B. "Lessor" means a person who rents or leases tangible personal property. 
2. 
Offset allowed. 
Notwithstanding any law to the contrary, a lessor who 
erroneously collects sales tax on the lease or rental of tangible personal property from a 
customer, remits that sales tax to the State and does not subsequently return that 
erroneously collected sales tax to that customer is entitled to an offset against an 
assessment for use tax owed by the lessor on that property as provided in this section. 
3. Application. In order to receive the offset under this section, a lessor who meets 
the requirements of subsection 2 must apply to the assessor for the offset allowed under 
subsection 2 and provide any information the assessor requires, including, but not limited 
to, the names and last known addresses of the customers of the lessor to whom the lessor 
did not make a refund, the amount of the sales tax erroneously collected from those 
customers and the date of the collections. 
The lessor must submit a completed 
application to the assessor no later than 30 days following the assessment of use tax. 
4. Notice to customers; requirements of notice; refund. Within 30 days of receipt 
of a completed application pursuant to subsection 3, the assessor shall determine whether 
any of the customers identified by the lessor under subsection 3 were provided a refund 
of the erroneously collected sales tax by the State pursuant to section 2011. The assessor 
shall provide written notification and an application for refund to those customers the 
Page I -124LR2219(04)-1 
SENATE AMENDMENT 
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SENATE AMENDMENT "A "to COMMITTEE AMENDMENT "A" to H.P. 1084, L.D. 1540 
assessor cannot determine received a refund. 
The written notice must state that the 
customer: 
A. Is entitled to a refund of the erroneously collected sales tax unless the customer 
has already been refunded the erroneously collected sales tax; 
B. Has 90 days to request the refund from the assessor and may not request a refund 
from the lessor; and 
C. Notwithstanding any provision of law to the contrary, forfeits any right to the 
erroneously collected sales tax if the customer does not request a refund within the 90 
days specified under paragraph B. 
Upon receipt of a completed application for a refund, the assessor shall provide the 
customer with a refund of the sales tax that the assessor determines was erroneously 
collected from that customer. The customer is not entitled to interest for a refund made 
pursuant to this subsection. 
5. Amount of offset; reduction for refunds and administrative costs. No later 
than 180 days after receipt of a completed application pursuant to subsection 3, the 
assessor shall determine the amount of the offset and provide an offset against a use tax 
assessment to a lessor that meets the requirements of this section. The amount of the 
offset is the lesser of: 
A. The amount of the use tax assessment; and 
B. The amount of the sales tax erroneously collected during the time period to which 
the assessment applies reduced by: 
(1) Any refunds made by the assessor to customers pursuant to subsection 4 and 
sections 1814 and 2011 for an erroneous collection of sales tax on leases or 
rentals during the assessment period; and 
(2) 
Any administrative costs incurred by the assessor in complying with 
subsection 4 and this subsection. 
6. Abandoned property. Notwithstanding any law to the contrary, erroneously 
collected sales tax subject to this section is not considered property subject to the 
provisions of the Uniform Unclaimed Property Act.' , 
Amend the amendment in section 13 by adding at the end the following new 
sentence: 
'That section of this Act that enacts Title 36, section 1861-B applies 
retroactively to March 1, 2010.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment allows a lessor of tangible personal property who collects sales tax 
erroneously on the lease or rental of that property to use the erroneously collected sales 
tax, less any refunds of that erroneously collected tax to customers, to offset an 
assessment against that lessor for use tax on that property. The lessor is required to apply 
to the State Tax Assessor for the offset no later than 30 days following the use tax 
SENATE AMENDMENT 
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SENATE AMENDMENT "II" to COMMITTEE AMENDMENT "A" to H.P. 1084, L.D. 1540 
assessment and provide the names and last known addresses of the customers from whom 
the sales tax was erroneously collected and not refunded, the date of that collection and 
the amount of the sales tax erroneously collected. The assessor is required to determine 
whether each customer received a refund of the erroneously collected sales tax and to 
notifY in writing those customers who did not. A customer who fails to request a refund 
within 90 days following notification by the assessor forfeits any right to that refund. 
Following the refund of any erroneously collected sales tax, the assessor is required to 
provide an offset to the lessor of the amount of the sales tax erroneously collected, less 
any refunds and administrative costs, up to the amount of the use tax assessment. This 
amendment specifies that the erroneously collected sales tax is not subject to abandoned 
property laws. Finally, this amendment applies this provision retroactively to March I, 
2010. 
FISCAL NOTE REQUIRED 
SPONSORED BY: 
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(Senator PERRY, J.) ~ 
COUNTY: Penobscot 
SENATE AMENDMENT 
Approved: 04/0511 0 Mac:.. 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
LD 1540 
LR 2219(04) 
An Act To Amend the Tax Laws 
Fiscal Note for Senate Amendment ';/{" to Committee Amendment "A" 
Sponsor: Sen. Perry of Penobscot 
Fiscal Note Required: Yes 
Fiscal Note 
2009-10 
$0 
2010-11 
$753,667 
Projections 
2011-12 
$532,000 
Other Special Revenue Funds 
$0 
$0 
($753,667) 
($39,667) 
($532,000) 
($28,000) 
Fiscal Detail and Notes 
Projections 
2012-13 
$532,000 
($532,000) 
($28,000) 
Allowing lessors of tangible personal property to use sales tax collected in error, less any refunds of same to 
customers, to offset an assessment against the lessor for use tax on that same tangible personal property will result in 
revenue reduction to the General Fund of approximately $753,667 in fiscal year 2010-11 and $532,000 in revenue 
reduction in subsequent fiscal years. 
LR2219(04) - Fiscal Note - Page I of I 
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