Resolve, To Review and Update the Telecommunications Taxation Laws
Maine Legislature, Session 124, LD 1823

MAINE STATE LEGISLATURE 
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124th MAl ELEGISLATURE 
Legislative Document 
No. 1823 
H.P.1306 
House of Representatives, March 23,2010 
Resolve, To Review and Update the Telecommunications Taxation 
Laws 
Reported by Representative WATSON of Bath for the Joint Standing Committee on 
Taxation pursuant to Public Law 2009, chapter213, Part P, section 2. 
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'71/~1i; 1?1.1lldC~{ 
MILLICENT M. MacFARLAND 
Clerk 
Sec. 1. 
Convene working group. Resolved: 
That the Department of 
Administrative and Financial Services, Bureau of Revenue Services shall convene a .. 
working group to review the telecommunications personal property tax and other forms 
of taxation of telecommunications providers in this State and make recommendations for 
updating the telecommunications taxation laws. The Department of Administrative and 
Financial Services, Bureau of Revenue Services shall invite the participation of the Maine 
Municipal 
Association 
and 
other 
interested 
stakeholders 
representing 
the 
telecommunications industry including the incumbent local exchange carriers, newer 
competitive phone services without significarit personal property, in the State, including 
wireless carriers, and the cable industry; and be it further 
Sec. t., Duties. Resolved: That the working group under section 1 shallrevi'ew 
options for updating the telecommunications taxation laws tharare.revenue neutral for the 
State and provide for the equitable tax treatment of telecommunications providers. The 
options must include, but are not limited to, options that replace' the personal property tax 
on telecommunications personal property with a sales tax or a gross receipts tax. The 
working group shall review the. financial and administrative impact on state and local 
government as well as the impact on consumers. 
The working group'shall make 
recommendations for changes to the telecommunications taxation laws based on this 
review; and be it further 
Sec. 3. Report recommendations. Resolved: That, by January 17, 2011, the 
Department of Administrative and Financial Services, Bureau of Revenue Services shall 
report to the joint standing committee of the Legislature having jurisdiction over taxation 
matters findings and recommendations for updating the telecommunications taxation laws 
under section 2, including any necessary implementing legislation; and be it further 
Sec. 4. Legislation. Resolved: 'That, after receipt and review of the report and 
recommendations submitted pursuant to section 3, the joint standing committee of the 
Legislature having jurisdiction over taxation matters, may submit a bill to the First 
Regular Session ofthe 125th Legislature related to the report. 
SUMMARY 
This resolve requires the· Department of Administrative and Financial Services, 
Bureau of Revenue Services to convene a working group that includes representatives of 
municipalities and the telecommunications industry. It requires the working group to 
review alternatives for updating the telecommunications taxation laws, including a woss 
receipts tax and a sales tax. It requires the Department of Administrative and Financial, 
Services, Bureau of Revenue Services to report to the joint standing committee of the 
Legislature having jurisdiction over taxation matters the findings and recommendations 
of the working group, including any necessary implementing legislation. The resolve 
authorizes the joint standing committee of the Legislature having jurisdiction over 
taxation matters to submit a bill to the First Regular Session of the 125th Legislature 
related to the report. 
FISCAL ;';01E REQUIRED 
(See attached) 
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Approved: 03121110 
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. 124th MAINE LEGISLATURE 
LD J r 
~ l 
LR 2612(01) 
Resolve, To Review and Update the Telecommunications Taxation Laws 
Fiscal Note for Original Bill 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
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Convening a working group to review options for updating the telecommunications taxati<2n laws and reporting to the 
joint standing committee of the Legislature having jurisdiction may result in minor costs which can be absorbed by the 
Bureau of Revenue Services within existing budgeted resources. 
LR2612(0 I) - Fiscal Note - Page I of I