An Act To Make Minor Substantive Changes to the Tax Laws
Maine Legislature, Session 124, LD 1401
Committee: Taxation
Sponsors: WATSON, PERRY
Amends: Title 36, Section 5219, 30-A MRSA §4722, 36 MRSA §112, 36 MRSA §183-A, 36 MRSA §184, 36 MRSA §184-A, 36 MRSA §19, 36 MRSA §191, 36 MRSA §2554, 36 MRSA §2557, 36 MRSA §4366-A, 36 MRSA §4641-C, 36 MRSA §5219-B, 36 MRSA §5276, 36 MRSA §5278, 36 MRSA §5332, 36 MRSA §5333

Legislative Document 
1401 
H.P.980 
House of Representatives, April 2, 2009 
An Act To Make Minor Substantive Changes to the Tax Laws 
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. 
1'llflll·tl.11I 't·,:.';~·k·,j !,.IIIl'1 
71/~~ 1n.17!!IC~{ 
MILLICENT M. MacFARLAND 
Clerk 
_~i '; :.-. 
:.:;~ 
Be it enacted by the People of the State of Maine as follows: 
.Sec. 1. 27 MRSA §Sl1, sub-§2, as enacted by PL 2007, c; 539, Pt. WW, § 1, is 
amended to read: 
.. Certification. The director shall certify information necessary for applicants to 
demonstrate eligibility for an income tax credit tinder. Title 36, section 5219-BB, 
including, but not limited to: 
A. That rehabilitations of certified historic structures are consistent with the United 
States Secretary of the Interior's Standards for Rehabilitation; and 
B. That historic structures are listed in or are eligible for listing in the National 
Register of Historic Places or are in certified local districtst--aOO.!. 
C. The amount of qualified rehabilitation expenditures associated "vith each project 
for which an' income tax, credit ',viii be claimed. 
When performing the certification required by this subsection, the director shall interpret 
the provisions of this subsection in a manner·consistent with the provisions of the federal 
Internal Revenue Code, Section 47. 
Sec. 2. 30-A MRSA §4722, sub-§l, ~B, as amended byPL 2007, c. 645, §2, is 
further amended to read: 
BB. Make a loan, or contract with a financial institutioilto make a loan on behalf of. 
the Maine State Housing Authority, to payoff an existing loan or to pay amounts past 
due on an existing loan on an owner-occupied single-family residence to assist a 
homeowner who is in default of the existing loan or in danger of losing the residence 
through foreclosure. Prior to receiving a loan under this paragraph, a homeowner 
must receive counseling with a 3rd-party, nonprofit organization approved by the 
United States Department of Housing and Urban Development, a housing financing 
agency of this State or the regulatory agency that has jurisdiction ov~r the creditor; 
and 
Sec. 3., 30-A MRSA §4722, sub-§l, tffCC, as enacted by PL 2007, c. 645, §3, is 
amended to read: 
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Cc. 
Encourage and provide incentives to individuals and entities that conserve 
energy; suppOli and participate, with resources derived from sources except the 
conservation program fund under Title 35-A, section 321 I-A, subsection 5, in 
markets that reward- energy conservation and use the proceeds from this participation 
to support affordable housing programs under its jurisdiction; and create and 
administer programs that encourage individuals and entities to .conserve energy.,.; and 
Sec. 4. 30-A MRSA §4722, sub..,§l, t[DD is enacted to read: 
DO. Certify affordable housing projects for the purpose of the income tax credit 
increase under Title 36, section 5219-BB, subsection.3; administer and enforce the 
affordability requirements set forth in this paragraph; and perform other functions 
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described in this paragraph and necessary to the powers and duties described in this 
paragraph. 
(]) For purposes of this paragraph, unless the context otherwise indicates, the 
following terms have the following meanings. 
Ca) 
"Affordable housing" means a decent, safe and· sanitary dwelling, 
apartment or other living accommodation for a household whose income 
does not exceed 60% of the median income for the area as defined by the 
United States Department of Housing and Urban Development under the 
United States Housing Act of 1937, Public Law 412,50 Stat. 888, Section 8, 
as amended. 
(b) "Affordable housing project" means a project in whic~: 
(i) At least 50% of the aggregate square feet of the completed project is 
housing of which at least 50% of the aggregate square feet of the 
completed housing creates new affordable housing; or 
(ii) At least 33% of the aggregate square feet of the completed project 
creates new affordable housing. 
(2) An affordable housing project for which the owner of the property received 
the income tax credit increase under Title 36, section 5219~BB, subsection 3 must 
remain an affordable housing project for 30 years from the date the affordable 
housing project is placed in service. 
. If the· property does not remain an . 
affordable housing project for 30 years from the date the affordable housing 
pi"oject is placed in service, the owner of the propelty shall pay to the Maine State 
. Housing Authority for application to the Housing 0ppOliunities for Maine Fund 
established under section 4853 an 'amount equal to the income tax credit increase 
allowed under Title 36, section 5219-BB, subsection 3, plus interest on that 
amount at the i·ate· of 7% per annum from the date the property is placed in 
service unW the date of payment of all amounts due. 
The affordability 
requirements and the repayment obligation in this subparagraph must beset forth 
in a restrictive covenant executed by the owner of the property alid the affordable 
housing project for the benefit of and· enforceable by the Maine State Housing 
Authority and recorded in the appropriate registry of deeds before the owner of 
the property claims· the income tax credit increase under Title 36, section 
5219-BB, subsection 3. 
(3) If the repayment obligation in subparagraph (2) is not ftilly satisfied after 
written notice is sent by celiified mail or registered mail to the owner of the 
property at the' owner's last known address, the Maine State Housing Authority 
may file a notice of lien in the registry of deeds of the county in which the real 
property subject to the lien is located. The notice of lien must specify the amount 
and interest due, the name and last known address of the owner, a descrIption of 
the propelty subject to'the lien and the Mair.re State Housing Authority'S address 
and the name and address of its attorney, if any. 
The Maine State· Housing 
Authority shall send a copy of the notice of lien filed in the registry by celiified 
mail or registered mail to the oWlier of the propelty at the owner's last known 
address and to imy. person who has a security interest, mortgage, lien, 
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encumbrance or other interest in the property that is properly recorded in the 
registlY of deeds .in which the property is located. The lien arises and becomes 
perfected at the time the notice is filed in the appropriate registry of deeds in 
accordance with this subparagraph. The lien constitutes a lien on all property 
with respect to which the owner receives the income tax credit increase tinder 
Title 36, Section 5219-BB, subsection 3 and the proceeds of any disposition of 
the property that occurs after notice to the owner of the repayment obligation. 
The lien is prior to any mortgage and security interest, lien, restrietive covenant 
or other encumbrance recorded, filed or otherwise perfected after the notice of 
lien is filed in the appropriate registlY of deeds. The lien may be enforced by a 
turnover or sale order in accordance with Title 14, section 3131 or any other 
manner in which a judgment lien may be enforced under the law. The lien must 
be in the amount of the income tax credit increase allowed under Title 36, section 
. 5219-BB, subsection 3, plus interest on that amount at the rate of 7% per annum 
from the date the property is placed in service until the date of payment of all 
amounts due. Upon receipt of payrilent of all amounts due under the lien, the 
Maine State Housing Authority shall execute a discharge lien for filing in the 
registry or offices in which the notice of lien was filed. 
(4) Annually by every August 1st until and including August 1, 2013, the Maine 
State Housing Authority shall review the report issued pursuant to Title 27, 
section 511, subsection 5, paragraph A to determine the percentage of the total 
aggregate square feet of completed projects that constitutes new affordable 
, housing, rehabilitated and developed using: 
(a) 
Either of the income tax credits· under Title 36, section 5219-BB, 
subsection 2; and 
(b) 
The income tax credit increase under Title 36,. section 5219-BB, 
subsection 3. 
If the total aggregate square feet of new affordable housing does not equal or 
exceed 30% of the total aggregate square feet of rehabilitated and developed 
completed projects eligible for a credit under Title 36, section 5219-BB, the 
Maine State Housing Authority and· Maine Historic Preservation Commission 
shall notify the State Tax Assessor of this fact. 
Sec. 5. 36 MRSA §112, sub-§13 is enacted to read: 
13. Set-off agreements. The assessor may enter into agreements with other taxing 
jurisdictions to provide for collection of tax debts by means of setoffs as provided in this 
subsection. 
A. The assessor may enter into an agreement with the Federal Government pursuant 
to the Code, Section 6402(e) to set off against tax refunds payable by the Federal 
Government and pay to this State taxes owed to this State. 
B. The assessor may enter into an agreement with another state or an agency of 
another state to set off against tax refunds payable by the other state and pay to this 
State taxes owed to this State. 
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C. In conjunction with an agreement authorized under paragraph B, the assessor may 
enter into an agreement that allows the other state to set off against tax refunds 
payable by this State taxes owed to the other state. The assessor may enter into an 
,agreement authorized by this paragraph only if the other state allows this State to set 
off. against tax refunds owed by. the other, state taxes owed. to this State ori 
substantially similar terms. 
D. The assessor may enter into an agreement authorized by paragraph C only if the 
agreement provides that the other state may not set off against tax refunds payable by 
this State unless the other state has notified the taxpayer of the taxes due and has 
given the taxpayer an opportunity for review or appeal of the tax debt. The other 
state must certify to the assessor that it has notified the taxpayer of the taxes due and 
has given the taxpayer an opportunity for review or appeal of the tax debt before the 
setoff is exercised. 
E. For purposes of this subsection, "tax" includes monetary restitution ordered to be 
paid to the bureau as part of a sentence imposed for a violation of this Title or Title 
17-A. 
Sec. 6. 36 MRSA §183-A is enacted to read: 
§183-A. Subsequent offenses 
1. Prior conviction; Class D crimes. A person who commits a Class D crime under 
this Title 'who has a prior conviction for a.ClassB, Class C or Class b crime under this 
Title commits a Class C crime; 
2. Prior conviction; Class C crimes. A person who commits a Class C crime under 
this Title who has a prior conviction for a Class B, Class C or Class D crime under this 
Title commits a Class B crime. 
3. Allegation of prior conviction when sentence enhanced. Title 17-A, section 
9-A governs the use of prior convictions when determining a sentence under this section. 
Sec. 7. 36 MRSA §184, sub-§2, as enacted by PL 2003, c. 452, Pt. U, § I and 
affected by Pt. X, §2, is repealed. 
Sec. 8. 36 MRSA §184-A, sub-§I-A, as enacted by PL 2003, c. 452,. Pt. U, §2 
and affected by Pt. X, §2, is repealed. 
Sec. 9. 36 MRSA §184-A, sub-§2-A, as enacted by PL 2003, c. 452, Pt. U, §2 
and affected by Pt. X, §2, is repealed. ' 
Sec. 10. 36 MRSA§185, sub-§.4 is enacted to read: 
4. 
Restitution. 
For pumoses of this section, "liquidated tax liability" includes 
monetary restitution ordered to be paid to the bureau as part of a sentence imposed for a 
violatiori of this Title or Title 17-A. 
S~c. Ii. 36 MRSA §19i, sub-§2, cnK, as repealed and replaced by PL 1987, c. 
769, Pt. A, § 145, is amended to read: 
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K. The disclosure by a municipa:J assessor, or by the State Tax Assessor with regard 
to the unorganized territory, of information contained on tfl.e f!. declaration of value 
furm required by filed pursuant to section 4641 B 4641-D or the Internet pUblication 
by the State Tax Assessor of information, other than taxpayer identification numbers, 
obtained from declarations of value filed pursuant to section 4641-D; 
Sec. 12. 36 MRSA §191, sub-§2, ~JJ, as amended by PL 2007, c. 539, Pt. M, §3 
and Pt. OO,§6; c. 693, §8; and c. 694, §2, is fU11her amended to read: 
JJ. The disclosure to the State Purchasing Agent of a person's sales tax standing as 
necessary to enforce Title 5, section 1825-8, subsection 14; aHd 
Sec. 13. 36 .. MRSA §191, sub-§2,~, as enacted by PL 2007, c. 539, Pt. M, 
§4, is amended to read: 
KK. The disclosure of information necessary to administer the setoff of liquidated 
tax debts pursuant to section 185, subsection 3~~ 
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Sec. 14. 36 MRSA §191, sub-§2, ~, 
as enacted by PL2007, c. 539, Pt. 00, 
§7, is reallocated to 36 MRSA §191, sub-§2, ~L. 
Sec. 15. 36 MRSA §191, sub-§2, ~K, as enacted by PL 2007, c. 693, §9, is 
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reallocated to 36 MRS A § 191, sub-§2, ~MM. 
Sec. 16. 36 MRS A §191, sub-§2, ~, 
as enacted by PL 2007, c. 694, §3, is 
reallocated to 36 MRS A §191, sub-§2,~. 
Sec. 17. 36 MRSA §191, sub-§2, ~OO is enacted to read: 
00. The disclosure to duly authorized officers of the Federal Government and of 
other state governments of iriformation necessary to administer a set-off agreement 
pursuant to section 112, subsection 13. The information may not be disclosed unless 
the officer's government permits a substantially similar disclosure of information to 
the taxing officials ofthis State and protects the confidentiality of the information in 
a manner substantially similar to that provided by this section. 
Sec. 18. 36 MRSA §2554, sub-§4 is enacted to read: 
4; Purchases for resale not resold. When a service provider purchases a service 
subject to tax under this chapter from another. service provider using a resale certificate 
approved by the assessor and claims that it will resell the service, and then subsequently 
uses the service itself rather than reselling it, the purchaser becomes liable for any unpaid 
tax on that service on the date of such use. 
Sec. 19. 36 MRSA §2557, sub:"§3, ~G-1 is enacted to read: 
G-l. Incorporated nonprofit medical clinics whose sole mission is to provide free 
medical care to the indigent or uninsured; 
. 
Sec. 20. 36 MRSA §4366-A, sub-§l, as amended by PL 2007, C. 438, §§91 and 
92, is repealed. 
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Sec. 21. 36 MRSA §4366-A,sub-§2, as amended by PL 2007, c., 438, §93, is 
further amended to read: 
2. Provided to sellers. The State Tax Assessor shall provide stamps to a licensed 
distributor upon submission by the licensed distributor of a cigarette tax return in a form 
prescribed by the assessor. The stamps must be of a design suitable to be affixed to 
packages of cigarettes as evidence of the payment of the tax imposed by this chapter. 
The assessor may permit a licensed distributor to pay for the stamps within 30 days after 
the date of purchase, if a bond satisfactory to the assessor in an amount not less than 50% 
of the sale price of the stamps has been filed with the assessor conditioned upon payment 
for the stamps. Such a distributor may continue to purchase stamps on a 30-day deferral 
basis only if it remains current with its cigarette tax obligations. The assessor may not sell 
additional stamps to a distributor that has failed to pay in full within 30 days for stamps 
previously purchased until such time as the overdue payment is received. The assessor 
shall sell cigarette stamps to licensed distributors at the following discounts fi'om their 
face value: 
D. For stamps at the face value of 100 mills, the discount rate. is·I.15%. 
Sec. 22. 36 MRS A §4366-A, sub-§3, as enacted by PL 1997, c. 458, §10, IS 
amended to read: 
·3. Affixed to cigarettes. A distributor shall affix, or cause to be affixed, in such 
manner as the ass;essor may specify, stamps of the proper denominations to individual 
packages of cigarettes sold or distributed by the distributor in this State. The distributor 
shall affix the stamps prior to the time in the manner specified by the assessor before the 
cigarettes are transferred out of the possession of the distributor. A distributor may not 
sell, offer for sale or display for sale in this State cigarettes that do not bear stamps 
evidencing the payment of the tax imposed by this chapter, except that a licensed 
distributor may sell unstamped cigarettes to another licensed distributor if the sales are 
documented in a form prescribed by the assessor. The 'face value of the stamps must be 
considered as part of the retail cost of the cigarettes. 
Sec. 23. 36 MRSA §4366-A, sub-§6, as repealed and replaced by PL 2003, c. 
452, Pt. U, § 13 and affected by Pt. X, §2, is amended to read: 
6. Penalties. The following penalties apply to violations of this section. 
A. A person who sells, offers for s~le, displays for sale or possesses with intent to 
sellunstamped cigarettes in violation of this section commits a Class 0 crime. 
B. 
A person 'Nho violates paragraph A 'Nhen the person has 2 or more prior 
convictions for violation of this chaoter commits a Class C crime. , 
C. 
A person who sells ei:, transfers, reaffixes or reuses cigarette stamps or Ilses 
stamos more than once in violation of this section commits a Class 0 crjme. 
D. 
A person '>vhe violates paragraph'C '!Nhen the person has one or more prior 
convictions for violation of this chanter commits a Cla~lS C crime. 
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Except as otherwise specifically provided, violation of this subsection is a strict liability 
crime as defined in Title 17-A, section 34, subsection 4-A. 
Title 17 A. section 9 A !!overns the use of orior convictions when determininl! a 
sentence. 
Sec. 24. 36 MRSA §4641-C, sub-§7, as amended by PL 2003, c. 344, Pt. D, §26, 
is further amended to read:· 
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7. Deeds pursuant to mergers or consolidations. Deeds made pursuant to mergers 
or consolidations carried out pursuant to Title 13 C, chapter 11 of business entities, from 
which no gain or loss is recognized under the Internal Revenue Code. For purposes of this 
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subsection. "business entity" means an association of legal entity organized to conduct 
business, including, without limitation, a domestic or foreign corporation, a limited 
partnership, a general partnership, a limited liability partnership, a limited liability 
company, a joint venture, a joint stock company or a business trust; 
Sec. 25. 36 MRS A §4715, as enacted by PL 1987, c. 513, § 10 and amended by PL 
1991, c. 376, §61, is repealed and the following enacted in its place: 
§4715. Dealer reports of purchases and payment of taxes 
Every dealer shall keep, as a part of its permanent records, a record of all mahogany . 
quahogs purchased at point of first sale. These records must be open for inspection by 
. the State Tax Assessor at all times. On or before the last day of each month, every dealer 
shall file a return with the assessor on a form furnished by the assessor stating the number 
of bushels of mahogany quahogs purchased by the dealer 'during the preceding calendar 
month. At the same time;the dealer shall pay to the assessor a tax of $1.20 per busheL on 
all mahogany quahogs purchased by the dealer during the preceding calendar month. A 
dealer whose annual tax liability wider this chapter does not exceed $1,000 may file an 
annual return witli payment on or before January 31st covering the prior calendar year. If 
the assessor determines that additional tax is due or that an overpayment of tax has been 
made·, assessments or refunds must be made by the assessor to the dealer. 
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Sec. 26. 36 MRSA §5219-BB, as amended by PL 2007, c. 693, §32 and affected 
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by §37, is further amended to read: 
§5219-BB. Credit for rehabilitation of historic properties after 2007 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. 
"Affordable Certified affordable housing project" means a decent, safe and 
sanitary d'.','elling,. apartment or other living accommodation for a household ..... hose 
income does not exceed 60% of the median income for the area as defined by the 
United States Department of Housing and Urban Development under the United 
. 
States Housing Act of 1937, Public La'.',' 412, 50 Stat. 888, Section 8, as amended 
certified historic structure that has been certified by the Maine State Housing 
Authority as an affordable housing project pursuant to Title 30-A, section 4722, 
subsection l,panigraph DD. 
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. B. 
"Certified historic structure" means a structure that has been certified by the 
Director of the Maine Historic Preservation Commission as a historic structure under 
Title 27, section 511. 
C. "Certified qualified rehabilitation expenditure" means a qualified rehabilitation 
expenditure, as defined by the Code; Section 47(c)(2), made between January 1,2008 
and December :3 I, 2013 certified by the director under Title 27, section 511 and used 
in the certified rehabilitation of a celiified historic structure. 
For purposes of 
subsection 2; paragraph B, .qualified rehabilitation expenditures incurred in the 
certified rehabilitation of a celiified historic structure located in the State do not 
include a requirement that the celiified historiC structure be substantially 
. rehabilitated. 
D. "Director" means the director of the Maine Historic Preservation Commission. 
2. Credit allowed. A taxpayer is allowed a credit against the tax imposed under this 
Part: 
A. Equal to 25% of the taxpayer's certified qualified rehabilitation expenditures for 
which a tax credit is claimed under Section 47 of the Code for a certified historic 
. structure located in the State; or 
B. Equal to 25% of the certified qualified rehabilitation expenditures of a taxpayer 
who incurs not less than $50,000 and up to $250,000 in certified qualified 
rehabilitation expenditures in the rehabilitation of a certified historic structure located 
in the State and who does notciaim the federaJ credit with regard to those 
expenditures. The credit may be claimed for the taxable year in which the certified 
historic structure is placed in service, except that a credit may not be claimed for 
expenditures incurred before Janua~)' 1, 2008 or after December 31, 2013. 
A taxpayer.is allowed a credit under paragraph A or B but not both. A credit may not be 
claimed for expenditures incurred before January 1,2008 or after December 31,2013. 
3. Increased cr!!dit for a certified affordable housing project. The credit allowed 
under this section is increased to 30% of certified qualified rehabilitation expenditures if 
the project is also an for a certified affordable housing project. The 30% credit is 
available only for projects for .. ",hich at least 50% of the aggregate square feet of the 
completed project is housirig of .. ,,'hich at least 50% of the; aggregate square feet of the 
,completed housing creates ne'", affordable housing or for , • ."hich at least 33% of the 
aggregate square feet of the completed project creates new affordable housing. 
Affordable housing created using the 30%credi't must remain affordable for 30 years 
pursuant· to a mechanism acceptable to the Maine State Housing Authority. . The 
mechanism must provide that if the property does not remain affordable for 30 years, the 
owner of the property must pay to the Housing Opportunities for Maine Fund under Title 
/\, section 4853 an amount equal to the credit increase allovt'ed to the ta)(payer under 
this subsection plus interest at the rate of 7% per annum beginning when the property is 
placed in service and ending upon payment. If the certified affordable housing project for 
which an increased credit was allowed under this subsection does not remain an 
affordable housing project for 30 years from the date the affordable housing project is 
placed in service, the owner of the property is subject to the repayment provisions of Title 
30-A, section 4722, subsection 1, paragraph DD. 
Upon notification by the Maine 
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Historic Preservation Commission and the Maine State Housing Authority pursuant to 
Title 30-A, section 4722, subsection I, paragraph DO, subparagraph 4, the State Tax 
Assessor shall raise the credit increase amount allowed under this subsection by one 
percentage point for tax years beginning in the calendar year of that notification. The 
maximum total credit allowed under this subsection may not exceed 35% of the 
taxpayer's certified qualified rehabilitation expenditures. 
By August 1, 2009 and annually eve!), August .1 st thereafter to 2013, the Maine Historic 
Preservation Commission and the Maine State Housing Authority shall revie'i" the report 
issued pursuant to Title 27, section 511, subsection 5, paragraph A to determine the 
. percentage of the total aggregate square feet rehabilitated and developed using both the 
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25% credit under subsection 2 and the 30% credit under this subsection that constitutes 
nev,' affordable housing. If the total aggregate square feet of new affordable housing does 
not equal or e)(ceed 30% of the total aggregate square feet of rehabilitated and developed 
completed projects eligible for a credit under this section, the commission arid the 
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authority shall notifY the State Tax Assessor and the credit authorized in subsection 2, 
paragraph B is increased by 1 % for that tax year and for each succeeding year in ',."hich 
the 30% affordable housing threshold is not reached until a maximum credit rate of 35% 
it: rp.::IP.hp.A 
4. Maximum credit. The credit allowed pursuant to this section may not exceed 
$5,000,000 for each certified rehabilitation f7FOjeet of a certified historic structure under 
Section 47 of the Code placed into service in the State during the tmmble year for which a 
credit is claimed under this section. 
5. Timing of credit. Twenty-five percent of the credit .allowed pursuant to this 
section must be taken in the taxable year the property is placed into service credit may be 
first claimed and 25% must be taken in each of the next 3 taxable years. 
6. Credit refundable. The credit allowed under this section is fully refundable. 
7. Allocation of credit. Credits allowed to a partnership, a limited liability company 
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taxed as a partnership or multiple owners of property must be passed through to the 
partners, members or owners respectively pro rata in the same manner as under section 
5219-G, subsection I or pursuant to an executed' agreement among'the partners, members 
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or owners documenting an alternate allocation method. 
Credits may be allocated to 
partners, members or owners that are exempt from taxation under Section 501 (c)(3), 
Section SOl (c)(4) or Section SOl (c)(6) of the Code, and those partners, members or 
owners must be treated as taxpayers for the purposes of this subsection. 
8. Recapture. A credit received under this section subsection 2 is subject to the 
same recapture provisions as apply to a credit received under Section 47 ofthe Code. 
9. Limitation. A taxpayer who is eligible to claim a credit u,nder section 5219-R, 
whether or not a credit is actually claimed, may not claim a credit under this section. In 
addition, a credit may not be claimed under this section with respect to expenditures 
incurred for rehabilitation of Building No.2 in the Lockwood Mill Historic District in the 
City of Waterville. 
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Sec. 27. 36 MRS A §5220, sub-§7 is enacted to read: 
7. Exceptions. A r~sident individual who does not have a Maine income tax liability 
pursuant to this Pali for the taxable year and who filed a federal income tax return for the 
taxable year for the sole purpose of claiming a credit under the Code, Section 32 is not 
required to file a Maine income tax return for that taxable year. The assessor, by rule, 
may identify other exceptions to the requirements of this section. Rules adopted pursuant 
to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 
2-A. 
. 
Sec. 28. 36 MRSA §5276, sub-§l, as amended by PL 2005, c. 332, §25, is 
fUIiher amended to read: 
1. General rule. The State Tax Assessor, within the applicable period of limitations, 
may credit an overpayment of income tax, including an overpayment reported on a joint 
return, and interest on the overpayment against any liability arising from a 
redetermination pursuant to section 6211 or any liability in respect of any tax imposed 
under this Title owed by the taxpayer, or by the taxpayer's spouse in the case of a joint 
return. The balance, after any setoff pursuant to section 5276-A or pursuant to an 
agreement entered into under section 112, subsection 13, must be refunded by the 
Treasurer of State. For purposes of this subsection, "any tax imposed under this Title" 
includes monetary restitution ordered to be paid to the bureau as part of a sentence 
imposed for a violation of this Title or Title 17-A. 
Sec. 29. 36 MRSA §5278, sub-§2, as amended by PL 1999, c. 521, Pt. B, § I 0 
and affected by § 11, is further amended to read: 
2. Limit on amount of claim or refund. If th~ claim is filed by the taxpayer during 
the )-year period prescribed in subsection 1, the amount of the credit or refund may not 
exceed the portion of the tax paid within the 3 years immediately preceding the filing of 
the claim plus the period of any extension of time for filing the return. If 00 f! claim is 
not filed, any credit or refund allowed upon an audit of the taxpayer may not exceed the 
amount that would be allowable under this subsection, if a claim had been filed by the. 
taxpayer on the date the credit or refund is allowed. 
Sec. 30. 36 MRSA §5332, sub-§2, as enacted by PL 2003, c. 452, Pt. U, § 17 and 
affected by Pt. X, §2, is repealed. 
Sec. 31. 36 MRSA §5333, sub-§2, as enacted by PL 2003, c. 452, Pt. U, §18 and 
affected by Pt. X, §2, is repealed. 
Sec. 32. 36 MRS A §6665, as enacted by PL 2005, c. 12, Pt. BBB, §5, is repealed. 
Sec. 33. 36 MRS A §6758, sub-§3, as enacted by PL 1995, c. 669, §5, is amended 
to read: 
3. Deposit and payment of revenue. On or beforelune 30th of each year, the 
Commissioner of Administrative and Financial ServiCes assessor shall deposit an ~mount 
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certify to the State Controller the total retained employment tax increment revenues 
'for the preceding calendar year for approved employment tax increment financing 
programs ffi to be transferred to the state employment tax increment contingent account 
established, maintained and administered by the Commissioner of Administrative and 
Financial Services State Controller from General Fund undedicated revenue within the 
withholding tax category. On or before July 31st of each year, the Commissioner of 
Administrative and Financial Services assessor shall pay to each approved qualified 
business an amount equal to the retained, employment tax increment revenues of that 
qualified business for the preceding calendar year. 
Sec. 34. ,36 MRSA§6902, sub-§2,as amended by PL ,2007', c. 693, §36, is 
further amended to read: 
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2. 
Procedure for reimbursement. 
Within 6 we~ks following receipt of a tax 
reimbursement and credit certificate pursuant to Title 5, section 13090-L, subsection 4, a 
media production company shall report to the State Tax Assessor that portion of certified 
production wages paid during the project period, together with any additional information 
the assessor may reaso'nably require. The assessor shall certify to the commissioner the 
reimbursement amount to which a media production company is entitled State Controller 
the amounts to be transferred to the media production reimbursement account established, 
maintained and administered by the State Controller from General Fund undedicated 
revenue within the withholding tax category. 
The commissioner shall deposit the 
,amounts certified by the assessor in a media production reimbursement account 
established, maintained and administered by the commiSSIoner and shall pay those 
amounts to each media production company within 90 days of the receipt by the assessor 
of the media production company's report. 
Sec. 35. Application. That section of this Act that repeals and replaces Title 36, 
section 4715applies to tax periods beginning on or after January 1,2010. 
Sec. 36. Retroactivity. That section of this Act that enacts the Maine Revised 
Statutes, Title 36, section 2557, subsection 3, paragraph N applies retroactively to 
October 1, 2007. 
That section of this Act that amends Title 36, section 4641-C, 
subsection 7 applies retroactively to July 1, 2003. Those sections of this Act that amend' 
. 30 
Title 27, section 511, subsection 2; Title 30-A, section 4722, subsection 1, paragraphs BB 
and CC; and Title 36, section 5219-BB; ~nd that section that enacts Title 30-A, section 
4722, subsection 1, paragraph DD apply retroactively to June 30, 2008. 
SUMMARY 
This bill makes the following changes to the laws governing taxation. 
It changes procedures for certification of eligibility for the income tax credit for 
rehabilitation of historic properties including moving language regarding the 
responsibility of the Maine State Housing Authority to the Maine Revised Statutes, Title 
3'8 
30-A, chapter 201, which establishes and controls the Maine State Housing Authority. 
It authorizes the State Tax Assessor to enter into agreements with other states or the 
Federal Government to set off tax refunds payable by each state or the Federal 
Page II - 124LR0429(OI)-1 
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Government against tax debts owed to the other state or the Federal Government, and 
clarifies that restitution payable to the Department of Administrative and Financial 
Services, Bureau of Revenue Services as part of a sentence imposed for a criminal or tax 
law violation is a tax debt for purposes of such a setoff or a setoff against a federal tax 
refund. 
It establishes a consistent method for treating celiain tax law violations as a prior. 
conviction when determining asentence for a subsequent tax law violation. 
It clarifies that amounts payable by the State to it person may be assigned to the State 
Tax Assessor and applied to restitution payable to the Bureau of Revenue Services as part 
of a sentence imposed for a criminal or tax law violation. 
It provides authority for the State Tax Assessor to disclose to duly authorized officers 
of the' Federal Government and of other stategovernrnents information necessary to 
administer a set-off agreement with those governments. It also corrects a numbering 
problem created by Public Law 2007, chapters 539, 693 and 694, which enacted 4 
substantively different provisions with the same paragraph letter. 
It enacts an exemption from the service provider tax for sales to an incorporated 
nonprofit medical clinic, for consistency with a change to the sales and use tax law 
enacted in the First Regular Session of the 123rd Legislature. 
It designates the document filed by a distributor when obtaining cigarette stamps as a 
'tax return, allows a licensed distributor to sell unstamped cigarettes to another licensed 
distributor with appropriate documentation and establishes a consistent rule for treating 
certain tax law violations as a prior conviction when determining a sentence for a 
subsequent tax law violation. 
It clarifies the types of business entities that qualify for an exemption from real estate 
transfer tax on deeds made pursuant to a merger or consolidation. 
It allows a dealer owing no more than $1,000 per year for the tax on mahogany 
quahogs to file annual returns. 
It clarifies the procedures for calculating and certifying the income tax credit for 
rehabilitation of historic properties. 
It clarifies that income tax Tefunds may be set off and applied to restitution payable to 
the Bureau of Revenue Services as part of a sentence imposed for a tax law violation. 
It repeals a requirement for annual reporting of the projected costs of benefits for the 
current biennium and ensuing 2 biennia under the business equipment tax reimbursement 
program. 
It simplifies and clarifies the State's procedures for payment of employment tax 
increment financing reimbursements. 
It simplifies and clarifies the State's procedures for payment of media production 
reimbursements. 
It corrects a cross-reference and authorizes Internet pUblication by the State Tax 
Assessor of certain information obtained from real estate transfer tax declarations of 
value. 
It adds a provision to the service provider tax ensuring that the tax is paid when a 
taxable service is purchased for resale but is then used by the purchaser rather than being 
resold. 
It waives the requirement to file a Maine income tax return for indiv,iduals who filed 
a federal income tax return solely in order to Claim a federal earned income credit. It 
. authorizes the State Tax Assessor to identify by rule other exceptions to that requirement' 
to file a Maine income tax return. 
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It provides that an extension oftime to file a Maine income tax return does not extend 
the period for filing a claim for credit or refund of an overpaymen~ of Maine income tax. 
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