An Act To Modernize the Tax Laws and Provide over $75,000,000 to Residents of the State in Tax II Relief
Maine Legislature, Session 124, LD 1088
Committee Amendment CA_A_H530 (House)
Amends: 36 MRSA §5218-C, 36 MRSA §5218-D, 36 MRSA §5219-A, 36 MRSA §5402, 36 MRSA §5403, 36 MRSA §1752, 36 MRSA §1760, 36 MRSA §2021, 36 MRSA §6201, 36 MRSA §6203-A, 36 MRSA §6207, 36 MRSA §6210

COMMITTEE AMENDMENT "1+,, to H.P. 750, L.D. 1088, Bill, "An Act To 
Modernize the Tax Laws and Provide over $75,000,000 to Residents of the State in Tax 
II 
Relief" 
Amend the bill in Part A by striking out all of section 8 and inserting the following: 
'Sec. A-8. 36 MRSA §S124-A, as amended by PL 2009, c. 213, Pt. BBBB, §9 and 
affected by § I 7, is repealed.' 
Amend the bill in Part A by striking out sections 19 to 21 and inserting the following: 
'Sec. A-19. 36 MRSA §S218-A is enacted to read: 
§5218-A. Household credit 
1. Credit allowed. A resident individual is allowed a credit, referred to in this 
section as "the household credit," against the tax imposed by this Pal1. 
Unless the 
taxpayer elects to calculate the household credit under section 5218-B, the household 
credit is equal to the amount calculated in this section. An individual filing a return under 
section 5224-A is not eligible for a credit under this section. 
2. Amount of base credit. The base household credit is: 
A. For single individuals, $700; 
B. For unmarried individuals or legally separated individuals who qualify as heads of 
households, $1,050; 
C. For individuals filing married joint returns or surviving spouses permitted to file a 
joint return, $1,200; and 
D. For married persons filing separate returns, $600. 
3. Additional C1'edit. The base household credit is increased by $250 for each 
person for whom the individual is entitled to claim an exemption under the Code . 
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4. Phaseout of credit. The household credit calculated under subsections 2 and 3 is 
reduced by $1.50 for evelY $100 that the individual's taxable income exceeds: 
.-........-.".". 
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COMMITTEE AMENDMENT 
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COMMIlTEE AMENDMENT"~" to H.P. 750, L.D. 1088 
A. For single individuals and married persons filing separate returns, $27,500; 
B. For unmarried individuals or legally separated individuals who qualify as heads of 
households, $41,250; and 
C. For individuals filing married joint returns or surviving spouses permitted to file a 
joint return, $55,000. 
5. Credit refundable. The household credit allowed under this section is refundable 
up to $70 for a married joint return and $50 for all other returns filed by an individual 
who is not claimed as a dependent by another individual on a return under the Code. 
6. Ad justment for in Dation. For tax years beginning in 2014 and thereafter, the 
household credit amounts under subsections 2 and 3 and the credit phaseout thresholds 
under subsection 4 must be adjusted annually for inflation as provided in chapter 841. 
Sec. A-20. 36 MRS A §5218-B is enacted to read: 
§5218-B. Altemate calculation of household credit 
1. General. A resident individual who has claimed itemized deductions from federal 
adjusted gross income in determining the individual's federal taxable income for the 
taxable year may elect to calculate the household credit as provided in this section instead 
of under section 5218-A. An individual filing a return under section 5224-A is not 
eligible for a credit under this section. The credit calculated under this section is referred 
to in this section as "the alternate household credit. " 
2. Base. The alternate household credit is calculated by modifying the individual's 
total federal itemized deductions by: 
A. Reducing the total by any amount attributable to income taxes or sales and use 
taxes imposed by this State or any other taxing jurisdiction; 
B. 
Increasing the total by any amount of interest or expense incurred in the 
production of income taxable under this Part but exempt from federal income tax that 
was not deducted in determining the individual's federal taxable income; 
C. Reducing the total by any amount of deduction attributable to income taxable to 
financial institutions under chapter 819; 
D. Reducing the total by any amount attributable to interest or expenses incurred in 
the production of income exempt from tax under this Part; and 
E. Reducing the total by any amount attributable to a contribution that qualified for 
and was actually used as a credit under section 5216-C. 
3. Amount of base alternate household credit. The base alternate household credit 
is 5.5% of the individual's federal itemized deductions modified under subsection 2 plus: 
A. For single individuals and married persons filing separate returns, $400; 
B. For unmarried individuals or legally separated individuals who qualify as heads of 
households, $600; and 
C. For individuals filing married joint returns or surviving spouses permitted to file a 
joint return, $800. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "~" to I-J.P. 750, L.D. 1088 
4. 
Additional credit., The base alternate household credit, as adjusted under 
subsection 5, is increased by $250 for each person for whom the individual is entitled to 
claim an exemption under the Code. 
5. 
Maximum base alternate household credit. 
An individual's base alternate 
household credit may not exceed: 
A. 
For individuals filing as single or for married individuals filing separately, 
$1,150; 
B. For individuals filing as heads of households, $1, 750; or 
C. For married individuals filing jointly, $2,300. 
6. Phaseout; I·efundability. An alternate household credit calculated under this 
section is subject to the phaseout and refundability provisions of section 5218-A, 
subsections 4 to 6. The maximum alternate household credit amounts under subsection 5 
must be adjusted annually for inflation as provided in chapter 841. 
Sec. A-21. 36 MRSA §5218-C is enacted to read: 
§S218-C. Credit for certain charitable contributions 
A credit is allowed against the tax otherwise due under this PaJt for certain charitable 
contributions. The credit equals 5% of the amount of charitable contributions claimed on 
a federal return, excluding deductions calTied over from prior years, that exceeds 
$250,000. 
Sec. A-22. 36 MRSA §5218-D is enacted to read: 
§S218-D. Elderly credit 
A credit is allowed in the amount of $60 for each taxpayer who is 65 years of age or 
older or $120 for a married joint return if both spouses are 65 years of age or older. The 
credit is reduced by $2 for evelY $100 of adjusted gross income over $32,000 for single 
filers, $52,000 on a married joint return, $48,000 on a head of household return and 
$26,000 on a married filing separately return. 
Sec. A-23. 36 MRSA §5219-A, as amended by PL 2003, c. 390, §§46 and 47, is 
repealed.' 
Amend the bill in Part A by striking out all of section 30 and inserting the following: 
'Sec. A-30. 36 MRSA §5402, sub-§l-B, as enacted by PL 1999, c. 731, Pt. T, §8 
and affected by § 11, is amended to read: 
I-B. Cost-of-Iiving adjustment. The "cost-of-living adjustment" for any calendar 
year is the Consumer Price [ndex for the 12-month period ending June 30th of the 
preceding calendar year divided by the Consumer Price [ndex for the 12-l11onth period 
ending June 30,;!.OO+ 2012. 
Sec. A-31. 36 MRSA §5403, as amended by PL 2009, c. 213, Pt. WWW, § I and 
affected by §2, is further amended to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to H.P. 750, L.D. 1088 
§5403. Annual adjustments for inflation 
Beginning in ~ 
2013, and each subsequent calendar year thereafter, on or about 
September 15th, the State Tax Assessor shall multiply the cost-of-Iiving adjustment for 
taxable years beginning in the succeeding calendar year by the dollar amounts of the ffi* 
rate tables specified in section 5111, subsections 1 B, 2 Band 3 B base household credit 
amounts under section 5218-A, subsection 2, the additional credit amount under section 
5218-A, subsection 3, the credit phaseout thresholds under section 5218-A, subsection 4, 
the refundable limits under section 5218-A, subsection 5, the base altemate household 
credit amounts under section 5218-B, subsection 3, the additional credit amount under 
section 5218-B, subsection 4 and the maximum base alternate household credit amounts 
under section 5218-B, subsection 5. If the dollar amounts of each rate bracket for each 
base household credit amount under section' 5218-A, subsection 2, .each base alternate 
household credit amount under section 5218-B, subsection 3 or each maximum base 
alternate household credit amount under section 5218-B, subsection 5, adjusted by 
application of the c'Ost-of-living adjustment, are not mUltiples of $§4 $25, any increase 
must be rounded to the next lowest multiple of $§4 $25. If the dollar amounts for the 
additional credit under section 5218-A, subsection 3, the refundable limits under section 
5218-A, subsection 5 or the additional credit under section 5218-B, subsection 4, adjusted 
by application of the cost-of-living adjustment, are not multiples of $5, any increase must 
be rounded to the next lowest multiple of $5. If the dollar amounts for the credit phaseout 
thresholds under section 5218-A, subsection 4, adjusted by application of the cost-of-
living adjustment, are not mUltiples of $50, any increase must be rounded to the next 
lowest multiple of $50. If the cost-of-living adjustment for any taxable year would be 
less than the cost-of-living adjustment for the preceding calendar year, the cost-of-living 
adjustment is the same as for the preceding calendar year. The assessor shall incorporate 
such changes into the income tax forms, instructions and withholding tables for the 
taxable year. 
Beginning in 2009 and each subsequent calendar year thereafter, the assessor shall 
reduce the cost of living adjustment by an amount that increases estimated noncorporate 
income tax revenue by $10,500,000 for that calendar year using as a benchmark the most 
recent revenue projections of the Revenue Forecasting Committee established in Title 5, 
section 1710 E. 
Sec. A-32. Legislative intent. It is the intent of the Legislature that the household 
credit provided under the Maine Revised Statutes, Title 36, section 5218-A and section 
5218-B is to provide relief to low-income and middle-income persons from the 
disproportionate cost of living in this State including the high cost of heating oil and the 
heavy reliance of the citizens of the State on heating oil, which is the highest in the 
nation; the high cost of transportation and the limited availability of public transportation; 
the disproportionate state and local tax burden, including the extension of sales tax to 
services; and the high rate of local property taxes that contribute to household costs. 
Sec. A-33. Report; authority for legislation. As soon as possible but no later 
than November 1, 2011, the State Tax Assessor shall submit a report to the joint standing 
committee of the Legislature having jurisdiction over taxation matters that includes 20 I 0 
tax data and revenue projections and shows the actual impact of this Act in 2010 and the 
COMMITTEE AMENDMENT 
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COMMITJ'EE AMENDMENT "A ,. to H.P. 750, L.D. 1088 
projected impact of this Act in 2011 and 2012 on revenues and tax, progressivity resulting 
from the changes in the tax laws effected by this Act. 
The committee may submit legislation to the Second Regular Session of the 125th 
Legislature to adjust the household credit and alternative household credit to maintain 
revenue neutrality and to ensure that any revenue that exceeds revenue neutrality is used 
to increase the household and alternative household credits. The legislation may also 
include changes to the Maine Residents Property Tax Program as a means of providing 
tax relief.' 
Amend the bill in Part B in section 3 in subsection 7 in the 3rd line (page 12, line 12 
in L.D.) by striking out the following: "ill" and inserting the following: '40%' 
Amend the bill in Pali B in section 3 in subsection 7 in the 9th line (page 12, line 18 
in L.D.) by striking out the following: "ill" and inselting the following: '40%' 
Amend the bill in Palt B by striking out sections 4 to 7 and inselting the following: 
'Sec. B-4. 36 MRS A §1752, sub-§l-I is enacted to read: 
1-1. 
Administrative SUppOI·t operations. 
"Administrative SUppOit operations" 
means secretarial activities and supervision of administrative SUppOit staff; bookkeeping 
and accounting services; customer assistance activities; purchasing and receiving 
activities; human resources activities; and executive, tax compliance and legal support 
acti vities. 
Sec. B-5. 36 MRSA §1752, sub-§l-J is enacted to read: 
I-J. 
Amusement, entertainment and recreation services. 
"Amusement, 
enteliainment and recreation services" is defined pursuant to this subsection. 
A. 
"Amusement, entertainment and recreation services" means the following 
services: 
(1) Admission to entertainment venues and performances, including theaters, 
movies, lectures, concerts, festivals, amusement parks, water parks; fairgrounds, 
except for licensed agricultural fairs, race tracks, carnivals, circuses, sports 
activities, stadiums, amphitheaters, museums, planetariums, animal parks, petting 
. zoos, aquariums, historical sites and convention centers; 
(2) Fees charged for palticipation in or ently to golf courses, ITIll1Iature golf 
courses, bowling alleys, swimming' pools, skating rinks, ski lifts, billiard parlors, 
gymnasiums, go-cart courses, tennis and racquetball courts and paintball; 
(3) Admission fees charged for exhibition shows such as auto, boat, camping, 
home, garden, animal and antique shows; 
(4) Scenic and sight-seeing excursions including aircraft. helicopter, balloon, 
blimp, watercraft, railroad, bus, trolley and wagon rides, whitewater rafting and 
guided recreation, but excluding scenic and sight-seeing excursions on federally 
navigable waters; 
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COMMITTEE AMENDMENT"A" to H.P. 750, L.D. 1088 
(5) Entertainment services such as those provided by bands, orchestras, disc 
jockeys, comedians, clowns, jugglers, children's entertainers and ventriloquists; 
and 
(6) Proceeds from arcade games. 
B. "Amusement, entertainment and recreation services" does not include: 
(I) Admission to a licensed agricultural fair or charges for participation in any 
events or activities occurring at the fair organized by a school or incorporated 
nonprofit organization if all the proceeds from the event or activity are used for 
the charitable purposes of the school or organization; 
(2) 
Fees charged by health clubs, fitness centers and other facilities and 
swimming pools associated with those clubs, centers or facilities that are intended 
predominantly for human physical training and improvement rather than 
recreation and play; or 
(3) Admission to: 
(a) 
Museums and aquariums operated by a governmental entity or 
incorporated, nonprofit organization; 
(b) Concerts, dance productions, theatrical productions, SPOltS activities or 
similar events or activities organized and perfonned by a school or 
incorpcirated, nonprofit organization, if all proceeds of the event or activity 
are used for the charitable purposes of that school or organization; or 
(c) Festivals and special events organized by governmental entities, schools 
or incorporated, nonprofit organizations if all the proceeds of the festival or 
special event are directed to support a charitable purpose. 
Sec. B-6. 36 MRS A §1752, sub-§l-K is enacted to read: 
1-1(. Candy. "Candy" means a preparation of sugar, honey or other natural or 
artificial sweeteners· in combination with chocolate, fruits, nuts or other ingredients or 
flavorings in the fonn of bars, drops or pieces and that does not contain flour or require 
refrigeration.' 
Amend the bill in Part B in section 10 by striking out all of subsection 4-A (page 14, 
lines 1 to lOin L.D.) and inselting the following: 
'4-A. 
Installation, repair or maintenance services. 
"Installation, repair or 
maintenance services" is defined pursuant to this subsection. 
A. "Installation, repair or maintenance services" means: 
(I) All services involved in the installation, repair or maintenance of jewehy, 
cameras, guns, musical instruments, electronic and mechanical equipment, lawn 
and garden equipment, computer hardware and office equipment, vehicles and 
appliances; 
(2) Service and maintenance contracts with regard to personal property identified 
in subparagraph (1 ); 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" ~ " to H.P. 750, L.D. 1088 
(3) Tailoring and clothing and shoe repair; and 
(4) Furniture repair and restoration. 
B. "Installation, repair or maintenance services" does not include: 
(1) Services performed on tangible personal property used or held for use at or 
located at a manufacturing facility or fabrication facility, other than tangible 
personal property used in administrative support operations; or 
(2) Services involved in the installation, repair or maintenance of computer 
software, special mobile equipment; aircraft, watercraft or a truck or truck tractor 
registered in the name of a business as a commercial motor vehicle under Title 
29-A, section 504.' 
Amend the bill in Pal1 B in section 13 in subsection 8-C in the next to the last line 
(page 15, line 19 in L.D.) by striking out the following: "functions" and insel1ing the 
following: 'operations' 
Amend the bill in Part B in section 15 in subsection II-A in paragraph B by stdking 
out all of subparagraph (4) and inserting the following: 
'e 4) The sale of labor and parts used in the performance of repair services under a 
service or maintenance contract sold on or after Januaty I, 20 10;' 
Amend the bill in Pal1 B in section [5 in subsection [[ -A in paragraph B in 
subparagraph (9) in the last line (page 16, line 3 [ in L.D.) by inserting after the 
following: "rental" the following: 'except for production machinery or equipment' 
Amend the bill in Part B by inserting after section [5 the following: 
'Sec. 3-16. 36 MRSA §1752, sub-§l1-B is enacted to read: 
tt-B. Retirement facility. 
"Retirement facility" means a facility that includes 
residential dwelling units where, on an average monthly basis, at least 80% of the 
residents of the facility are persons 62 years of age or older.' 
Amend the bill in Part B in section [9 in subsection [7-B by striking out all of 
paragraph 0 (page 18, lines 2 and 3 in L.D.) 
Amend the bill in Pat1 B in section [9 in subsection 17-B by relettering the 
paragraphs to read consecutively. 
Amend the bill in Part B in section 20 in subsection 20-B in the 2nd line (page 18, 
line [I in L.D.) by striking out the following: "taxicab or" and in the last line (page 18, 
line [2 in L.D.) by insel1ing after the following: "services." the following: 'For the 
purposes of this Part, "limousine service" means livelY service hired for a specific event.' 
Amend the bill in Pat1 B by striking out all of section 21 and insel1ing the following: 
'Sec. 3-21. 36 MRSA §1752, sub-§21, as amended by PL 2005, c. 215, § 17, is 
further amended to read: 
21. Use. "Use" includes the exercise in this State of any right or power over tangible 
personal propeliy incident to its ownership, including the derivation of income, whether 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"~ "to H.P. 750, L.D. 1088 
received in money or in the form of other benefits, by a lessor from the rental of tan!!ible 
oersonal orooeFty production machinery or equipment located in this State.' 
Amend the bill in Pali B by inserting after section 23 the following: 
'Sec. B-24. 36 MRS A §1760, sub-§6, ~, as amended by PL 2007, c. 529, §2, is 
fUliher amended to read: 
E. Served by colleges to employees of the college when the meals are purchased 
with debit cards issued by the colleges; and 
Sec. B-25. 36 MRS A §1760,. sub-§6, ~, as amended by PL 2009, c. 211, Pt. B, 
§30, is further amended to read: 
F. Served by youth camps licensed by the Department of Health and Human Services 
and defined in Title 22, section 2491, subsection 16~; and 
Sec. B-26. 36 MRSA §1760, sub-§6, ~G is enacted to read: 
G. Served by a retirement facility to its residents when the cost of the meals is 
included in a comprehensive fee that includes the right to reside in a residential 
dwelling unit and meals or other services, whether that fee is charged annually, 
monthly, weekly or daily.' 
Amend the bill in Part B in section 24 in subsection 32-A in the last line (page 18, 
line 29 in L.D.) by inserting after the following: "32" the following: 'or subsection 87 or 
that is eligible for refund or exemption under section 2013' 
Amend the bill in Part B by striking out section 26 and inserting the following: 
'Sec. B-26. 36 MRSA §1760, sub-§82-A is enacted to read: 
82-A. Sales of taxable services delivered outside this State. Sales of taxable 
services performed on or with respect to tangible personal property located outside this 
State or when the property is brought into this State for performance of the services, and, 
following the performance of the services, the seller delivers the property to a location 
outside this State or to the United States Postal Service, a common carrier or a contract 
carrier hired by the seller for delivery to a location outside this State for use solely outside 
this State. 
Sec. B-27. 36 MRSA §1760, sub-§92 is enacted to read: 
92. Certain services. Sales of services that are subject to taxation under chapter 
358. 
Sec. B-28. 36 MRSA §1760, sub-§93 is enacted to read: 
93. Certain taxable services. The sale of a taxable service sold by a person that has 
made sales taxable under this Part during the most recent calendar year of no more than 
$5,000. 
Sec. B-29. 36 MRSA §1760, sub-§94 is enacted to read: 
94. Services to affiliates. Sales of installation, repair or maintenance services made 
between affiliated taxpayers that are engaged in a unitary business as defined in section 
5102, subsection 10-A. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" U" to I-J.P. 750, L.D. 1088 
Sec. B-30. 36 MRSA §1760, sub-§95 is enacted to read: 
95. 
Snowmaking. 
Sales or leases to a business that makes snow for skiing, 
snowmobiling or similar activities of: 
A. Electricity or fuel used to make snow; 
B. Machinery and equipment that is used directly and primarily in the making of 
snow; or 
C. Snow-grooming equipment.' 
Amend the bill in PaJi B in section 27 in § I 760-C in the first paragraph in the next to 
the last line (page 20, line 17 in L.D.) by inserting after the following: "purposes" the 
following: " except for those exemptions provided in section 1760, subsection 6,' 
Amend the bill in Part B in section 29 by striking out all of the first paragraph (page 
20, lines 32 to 43 and page 21, lines I to 5 in L.D.) and inserting the following: 
'A tax is imposed on the value of all tangible personal property and taxable services 
sold at retail in this State. The rate of tax is +% 8.5% on the value of liquor sold in 
licensed establishments as defined in Title 28-A, section 2, subsection 15, in accordance 
with Title 28-A, chapter 43; +% 8.5% on the value of rental of living qUaJiers in any 
hotel, rooming house or tourist or trailer camp; 7% on the value of rental of living 
qUaJiers in a trailer camp; +G% 12.5% on the value of rental for a period of less than one 
year of an automobile, including a loaner vehicle that is provided other than to a motor 
vehicle dealer's service customers pursuant to a manufacturer's or dealer's warranty; -1% 
8.5% on the value of prepared food; and 5% on the value of all other tangible personal 
property and taxable services. Value is measured by the sale price, except as otherwise 
provided. The value of rental for a period of less than one year of an automobile is the 
total rental charged to the lessee and includes, but is not limited to, maintenance and 
service contracts, drop-off or pick-up fees, airport surcharges, mileage fees and any 
separately itemized charges on the rental agreement to recover the owner's estimated 
costs of the charges imposed by government authority for title fees, inspection fees, local 
excise tax and agent fees on all vehicles in its rental fleet registered in the State. All fees 
must be disclosed when an estimated quote is provided to the lessee.' 
Amend the bill in Part B in section 33 in § 1817 in the fil~st paragraph in the first line 
(page 21, line 26 in L.D.) by striking out the following: 
"The" and inserting the 
following: 'Except as provided in section 1818, the' 
Amend the bill in Part B in section 33 in § 1817 in the first paragraph by striking out 
the last sentence (page 21, lines 38 to 40 in L.D.) and inserting the following: 
'This 
section does not apply to a lease associated with a sale and leaseback transaction when 
that sale and leaseback occurs within 90 days of the lessee's original purchase of the 
equipment.' 
Amend the bill in Pali B by inserting after section 33 the following: 
'Sec. B-34. 36 MRS A §1818 is enacted to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 750, L.D. 1088 
§1818 .. Leases and rentals of production machinery 
With regard to production machinery and equipment described in section 1760, 
subsection 31, the tax imposed by this Part must be paid by the lessor based on the 
acquisition cost of the machinery or equipment. Lease or rental Rayments by the lessee or 
renter are not subject to tax under this Part.' 
Amend the bill in Part B in section 36 in §2020 in the first paragraph in the 5th to 7th 
lines (page 22, J'ines 40 and 41 and page 23, line 1 in L.D.) by striking out the following: 
"with respectto the lease of property upon which a sales or use tax was due and has been 
paid in this State" and inserting the following: 'or does not impose tax on any portion of 
the lease of property that remains after the property is removed from that taxing 
jurisdiction' 
Amend the bill in Part B by inserting after section 36 the following: 
'Sec. B-37. 36 MRSA §2021 is enacted to read: 
§2021. Early termination of lease 
If a lease on property with respect to which the tax imposed by this Part has been paid 
on an accelerated basis is terminated by the lessee before the expiration of the lease term, 
the lessee is entitled to a refund of the tax allocable to that portion of the remaining lease 
payments. A refund may not be issued if the early termination is the result of an option to 
purchase the leased property or the lease has been terminated due to nonpayment.' 
Amend the bill in Part B by striking out all of sections 38 to 40. 
Amend the bill in Part B by striking out all of sections 43 and 44 and inserting the 
following: 
'Sec. B-43. 36 MRSA c. 720 is enacted to read: 
CHAPTER 720 
AIRPORT TRANSPORTATION FEE 
§4851. Airport transportation fee imposed 
A fee of $1 per passenger is imposed on a taxicab operator or a limousine operator, 
not subject to sales tax under Part 3, for each conveyance originating from or tenninating 
at a commercial airport.· 
§4582. Administration 
The fee imposed by this chapter is administered as provided in chapter 7 and Part 3, 
with the fee imposed pursuant to this chapter to be considered as imposed under Part 3. 
Sec. B-44. Rules. The State Tax Assessor, no later than November 1, 2009, shall 
develop informational bulletins for affected businesses describing in detail the sales tax 
changes contained in this Part. When developing this information the State Tax Assessor 
shall consult with and be guided by the Joint Standing Committee on Taxation. The State 
Tax Assessor shall concurrently adopt major substantive rules to implement the changes 
contained in this Part pursuant to the Maine Revised Statutes, Title 5, chapter 375, 
COMMITTEE AMENDMENT 
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COMMITTEE AIvlENDMENT 'P "to H.P. 750, L.D. 1088 
subchapter 2-A. Major substantive rules must be proposed in time to be considered by 
the Legislature during the Second Regular Session of the 124th Legislature. 
Sec. B-45. Monthly reports. The State Tax Assessor shall provide monthly 
reports to the Joint Standing Committee on Taxation through April I, 20 I 0 regarding the 
State's activities in implementing the provisions of this Part that broaden the sales tax 
base and increase the sales tax on prepared meals, lodging and rentals of automobiles for 
less than one year. The report must include: 
1. Information for taxpayers. A plan for providing information to taxpayers and the 
public about new sales and use tax obligations under this Part; 
2. Implementation Pl"ogl"ess. Progress reports on implementation of the plan and 
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copies of taxpayer materials and informational materials that are proposed for issuance by 
the assessor; and 
3. Matel"ials. Copies of proposeg bulletins and taxpayer guidance materials. 
The assessor shall inform the committee about implementation issues and shall seek 
the committee's advice on implementation and proposed rules. The committee may 
submit legislation to the Second Regular Session of the 124th Legislature regarding 
implementation of the provisions of this Pali that broaden the sales tax base and increase 
the sales tax on prepared meals, -lodging and rentals of automobiles for less than one 
year.' 
Amend the bill in Part B by striking out all of section 46 (page 24, lines 19 to 28 in 
. L.D.) 
Amend the bill in Part B in section 47 in the first line (page 24, line 29 in L.D.) by 
inserting after the following: "20 I 0" the following: ',except that the pOliion of this Part 
that increases the tax on short-term automobile rentals takes effect October 1, 2009' 
. 25 
Amend the bill in Part C in section I by striking out all of subsection 2-8 (page 24, 
lines 32 to 34 in L.D.) and inserting the following: 
'2-B. Residential property. "Residential property" means real property improved 
with one or more buildings or structures that in whole or in paJi are used for, or legally 
permitted to be used for, dwelling unit or guest room purposes. "Residential property" 
includes condominiums but does not include property with multiple dwelling units when 
or more of the units are intended to be used primarily for rental purposes.' 
Amend the bill by inseliing after Part C the following: 
'PARTD 
Sec. D-l. 36 MRSA §6201, sub-§5, as amended by PL 1995, c. 368, Pt. CCC, §7 
and affected by § II, is fluiher amended to read: 
5. Homestead. "Homestead" means the dwelling owned or rented by the claimant or 
held in a revocable living trust for the benefit of the claimant and occupied by the 
claimant and the claimant's dependents as a home, and may consist of a part of a 
multidwelling or multipurpose building and a paJi of the land, up to 10 acres, upon which 
Page II - 124LRI600(02)-1 
COMMITTEE AMENDMENT 
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II 
COMMllTEE AMENDMENT"~" to H.P. 750, L.D. 1088 
it is built. "Owned" includes a vendee in possession under a land contract and of one or 
more joint tenants or tenants in common, 
Sec. D-2. 36 MRSA §6201, sub-§7, as enacted by PL 1987, c. 516, §§3 and 6, is 
amended to read: 
7. 
Household income. "Household income" means all income received by all 
persons of a household in a calendar year while members of the household, exclud ing the 
income of members of the household for whom the claimant under this chapter is entitled 
to claim an exemption as a dependent under Part 8 for the year for which relief is 
requested. 
Sec. D-3. 36 MRSA §6201, sub-§9, as repealed and replaced by PL 2007, c. 438, 
§ 113, is amended to read: 
9. Income. "fncome" means Maine adjusted gross income determined in accordance 
with Part 8, modified as provided by this subsection. 
A. Maine adjusted gross income must be increased by the following amounts, to the 
extent not included in Maine adjusted gross income: 
(I) Contributions, including catch-up contributions, to any pension, annuity or 
retirement plan, including contributions to an individual retirement account under 
Section 408 of the Code, a simplified employee pension plan, a salary reduction 
simplified employee pension plan, a savings incentive match plan for employees 
plan and a deferred compensation plan under Section 457 of the Code and cash or 
deferred arrangements under Section 40 I of the Code and qualified, or "Keogh," 
accounts; 
. 
. 
rrangement under Seotion 
fI xible spendmg a . 
'b f ns to a 
e 
bl oontn u 10 
(2) Nontaxa e 
of the Codet 
(3) Amounts exoluded from gross inoome under Seotion 129 of the Code; 
(4) Distributions from a ROTH fRA; 
(5) Capital gains; 
(6) The. absolute value of the amount of trade or business loss, net operating loss 
carry-over, capital loss, rental loss, farm loss, paIinership or S Corporation loss 
included in Maine adjusted gross income; 
(7) Inheritanoe' , 
(8) Life insurance proceeds paid on death of' 
d 
an msure ; 
(9) Nonta)mble lavlsuit rewards resulting from la'" 
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' 
sffiOOOf;-itbel and ain and su . ' 
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n Slll S 
or aotlons suelt-as 
and legal 6)cpense:assooiated ~~:~I~tee~~:I:,dmg reImbursements such as medioal 
, 
(10) Support money; 
(11) Nontaxable strike benefits: 
COMMITTEE AMENDMENT 
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COMMIITEE AMENDMENT /1 " 
to H.P. 750, L.D. 1088 
(12) The gross amount of any pension or annuity, including railroad retirement 
benefits; 
(13) All payments received under the federal Social Security Act and state 
unemployment insurance laws; 
(14) Veterans' disability pensions; 
(15) Nontaxab[e interest received from the Federa[ Government or any of its 
agencies or instrumentalities; 
(16) Interest or dividends on obligations or securities of th is State and its political 
subdivisions and authorities; 
(17) Workers' compensation and the gross amount of "[oss of time" insurance; 
aR4 
(18) Cash public assistance and relief, but not including relief granted under this 
chapter7; and 
(19) The total nontaxable portion of the following items of income, determined as 
if a federal income tax return were required, but only if the total of all of the 
following income items exceeds $5,000: 
Ca) Jury duty payments; 
Cb) Awards; 
(c) Lawsuit awards resulting from lawsuits for actions such as slander, libel 
and pain and suffering, excluding reimbursements such as medical and legal 
expenses associated with the case; 
Cd) Strike benefits; and 
Ce) Life insurance proceeds paid on death of an insured. 
B. Maine adjusted gross income l~uSt be decreased by the following amOlints, to the 
extentinc[uded in Maine adjusted gross income: 
(1) The first $5,000 of proceeds from a life insurance pe-l-icy, whether paid in a 
[umo sum or in the form-e-f-an annuity; 
(2) A rollover from an individual retirement account, pension or annuity fund or 
plan to an individual retirement account, pension or annuity fund or plan; 
(3) Gifts from nongovernmental sources; and 
(4) Surplus foods or other relief in kind supplied by a governmental agency. 
Sec. D-4. 36 MRSA §6203-A, as amended by PL 2009, c. 213, Pt. S, § 14 and 
affected by § 16, is repealed and the following enacted in its place: 
COMMITTEE AMENDMENT 
",.'-
COMMJ1TEE AMENDMENT"n" to H.P. 750, L.D. \088 
§6203-A. Procedul'e for reimbursement 
1. 
Application periods beginning August 1, 2009 and August 1, 2010. 
For 
application periods beginning August I, 2009 and August 1, 2010, at least monthly on or 
before the last day of the month, the State Tax Assessor shall determine the benefit for 
each claimant under this chapter and certify the amount to the State Controller to be 
transferred to the· so-called circuit breaker reserve established, maintained and 
administered by the State Controller from General Fund undedicated revenue. At least 
monthly, the assessor shall pay the certified amounts to each approved applicant 
qualifying for the benefit under this chapter. Interest may not be allowed on any payment 
made to a claimant pursuant to this chapter. 
2. Application periods beginning during or after January 2011; applications 
filed January 1st to June 30th. 
For application periods beginning during or after 
January 2011 and with respect to aRplications filed prior to July I st, the State Tax 
Assessor shall determine the benefit for each claimant under this chapter and certify the 
amount to the State Controller at any time after June 30th, but no later than July 15th, to 
be transferred to the so-called circuit breaker reserve established, maintained and 
administered by the State Controller from General Fund undedicated revenue. No later 
than August I st, the assessor shall pay the cel1ified amounts to each approved applicant 
qualifying for the benefit under this chapter. Interest may not be allowed on any payment 
made to a claimant pursuant to this chapter. 
3. Application periods beginning during or after January 2011; applications 
filed after June 30th. For application periods beginning during or after January 2011 
and with respect to applications filed after June 30th but prior to the following November 
15th, plus any time granted to file, at least monthly on or before the last day of the month, 
the State Tax Assessor shall determine the benefit for each claimant under this chapter 
and certifY the amount to the State Controller to be transferred to the so-called circuit 
breaker reserve established, maintained and administered by the State Controller from 
General Fund undedicated revenue. At least monthly, the assessor shall pay the certified 
amounts to each approved applicant qualifying for the benefit under this chapter. Interest 
may not be allowed on any payment made to a claimant pursuant to this chapter. 
Sec. D-5. 36 MRS A §6204, as amended by PL 2005, c. 2, Pt. E, §3 and affected 
by §§7 and 8, is repealed and the following enacted in its place: 
§6204. Filing date 
1. 
Application period beginning August 1, 2009. 
For the application period 
beginning August 1, 2009, a claim may not be paid unless the claim' is filed with the 
bureau on or after August 1, 2009 and on or before May 31, 2010. 
2. 
Application period beginning August 1, 2010. 
For the application period 
beginning August 1, 2010, a claim may not be paid unless the claim is filed with the 
bureau on or after August 1, 2010 and on or before November 30, 2010. 
3. Application periods beginning on or after January 1, 2011. For application 
periods beginning on or after January 1, 2011, a claim may not be paid unless the claim is 
filed with the bureau during or after January and on or before the following November 
15th. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A "to H.P. 750, L.D_ 1088 
Sec. D-6. 36 MRSA §6207, sub-§l, 'ITA-I, as amended by PL 2009, c. 213, Pt. 
XXX, § I, is fUliher amended to read: 
A-I. Fifty percent of that portion of the benefit base that exceeds. 4% but does not 
exceed 8% of income plus 100% of that pOliion of the benefit base that exceeds 8% 
of income to a maJdmum payment of $2,000; and and calculated according to tables 
established by the State Tax Assessor. 
(I) Tables established by the assessor mllst be based on the benefit formula set 
fOlih in this subsection and include benefit base brackets in increments of $100 
and household income brackets in increments of $1,000. 
(2) The maximum benefit under this subsection is limited to $2,000; 
Sec. D-7. 36 MRS A §6207, sub-§l, C[B, as enacted by PL 2009, c. 213, Pt. 
XXX, §2, is amended to read: 
B. For application periods beginning on August 1, 2009 and on August I, 20 I 0, the 
benefit is limited to 80% of the amount determined under paragraph A-I~; and 
Sec. D-S. 36 MRSA §6207, sub-§l, ~rC is enacted to read: 
C. 
For application periods beginning on or after January I, 20 II, the benefit is 
limited to 88% of the amount determined under paragraph A-I. 
Sec. D-9. 36 MRSA §6210, last ~r, as amended by PL 2005, c. 218, §59, is 
fllliher amended to read: 
The assessor shall include a checkoff to request an the application form and 
instructions for the Maine Residents Property Tax Program 00 with the individual income 
tax form. The assessor shall also provide a paperless option for filing an application for 
the Maine Residents Property Tax Program_ 
Sec. D-IO. Report. By January 15, 2012, the State Tax Assessor shall submit a 
repOli to the joint standing comm ittee of the Legislature having jurisdiction over taxation 
matters providing information comparing the annual costofthe Maine Residents Property 
Tax Program from 2005 to 20 II, including the number of applicants for benefits under 
the Maine Residents Propeliy Tax Program and the average benefits provided, and 
providing projections for the same information for 2012 to 2015. 
The repOli must 
identify the extent of increased pafiicipation in and benefit cost of the Maine Residents 
Propeliy Tax Program as the result of coordination of the program with the income tax. 
The committee may submit legislation related to the report to the Second Regular Session 
of the 125th Legislature. 
Sec. D-I1. Application. Unless otherwise specified and except for that section of 
this Part that amends the Maine Revised Statutes, Title 36, section 6210, this Part applies 
to application filed with respect to program application periods of the Maine Residents 
Propeliy Tax Program beginning on or after August I, 20 I O. That section of this Pafi that 
amends Title 36, section 6210 applies to application filed with respect to program 
application periods of the Maine Residents Property Tax Program beginning during or 
after January 20 II. 
b' 
COMMITTEE AMENDMENT 
~.f..\. 
COMMllTEE AMENDMENT"~ "10 I-J.P. 750, L.D. 1088 
PARTE 
Sec. E-l. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Provides funding for 5 Tax Examiner positions and one Senior Tax Examiner 
position beginning October 1, 2010 to implement the individual income tax and rent and 
property refund tax law changes. 
GENERAL FUND 
2009-10 
2010-11 
POSITIONS - LEGISLATIVE COUNT 
0.000 
6.000 
Personal Services 
$0 
$340,479 
All Other 
$0 
$697,768 
GENERAL FUND TOTAL 
$0 
$1,038,247 
Revenue Services - Bureau of 0002 
Initiative: Provides funding for one Account Associate II position, one Tax Examiner 
position and 3 Revenue Agent positions beginning October I, 2009 to implement the 
sales and use tax law changes. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEP ARTMENT TOTALS 
GENERAL FUND 
DEPARTMENTTOTAL-ALLFUNDS 
2009-10 
5.000 
$235,211 
$287,862 
$523,073 
2009-10 
$523,073 
$523,073 
2010-11 
5.000 
$332,242 
$140,602 
$472,844 
2010-11 
$1,511,091 
$1,511,091 
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF 
Office of Tourism 0577 
Initiative: Allocates funds to the Tourism Marketing Promotion Fund due to the increase 
in certain sales tax revenue. 
COMMITTEE AMENDMENT 
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'24 
.34 
COMMln'EE AMENDMENT"~ "to H.P. 750, L.D. 1088 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
ECONOMIC AND COMMUNITY 
DEVELOPMENT, DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL - ALL FUNDS 
2009-10 
$0 
$0 
2009-10 
$0 
$0 
2009-10 
$523,073 
$0 
$523,073 
2010-11 
$740,000 
$740,000 
2010-11 
$740,000 
$740,000 
2010-11 
$1,511,091 
$740,000 
$2,251,091 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment makes changes to Part A of the bill to add income tax credits for 
charitable contributions exceeding $250,000 and an additional credit for persons who are 
year.s of age or older. The amendment also adjusts the formulas for calculation of the 
household credit and indexing for inflation of that credit. The amendment also requires 
that the State Tax Assessor report to the joint standing committee of the Legislature 
having jurisdiction over taxation matters by November I, 20 I I regarding the impact of 
the changes in the tax laws contained in the bill and authorizes the committee to submit 
legislation to the Second Regular Session of the 125th Legislature. 
This amendment makes changes to Paft B of the bill to clarify the definitions of 
taxable services and candy. The amendment creates sales tax exemptions for meals 
served at ceftain retirement facilities, sales of certain taxable services delivered outside 
the State, sales to affiliates, sales of services by a person that has made fess than $5,000 in 
sales of such services during the previous year and certain sales to a business that makes 
snow for skiing, snowmobiling or similar activities. The amendment reduces the sales 
tax rate for short-term rental of automobiles to 12.5% and makes changes to the taxation 
of leases. The amendment establishes an airport transportation fee of $1 for each person 
transported to a commercial airport by taxicab or limousine. 
The amendment also 
requires the State Tax Assessor to report to and consult with the joint standing committee 
COMMITTEE AMENDMENT 
~:i'-
I 
COMMITTEE AMENDMENT "A "to H.P. 750, L.D. 1088 
of the Legislature having jurisdiction over taxation matters in the preparation of bulletins, 
taxpayer guidance materials and major substantive rules relating to the implementation of 
Part B. 
This amendment makes changes in Part C to change the meaning of "residential 
property." 
This amendment adds Part D, which makes the following changes to the Maine 
Residents Property Tax Program, or Circuitbreaker Program. 
It simplifies the income calculation by excluding from household income the income 
of dependents and certain miscellaneous income. 
It also excludes from household 
income other income, such as nontaxable strike benefits, but only if the total of that 
income is less than $5,000. 
It changes the time for filing an application. For calendar year 2008 benefits, the 
application period is August I, 2009 through May 3 I, 2010; For calendar year 2009 
benefits, the application period is August I, 2010 through November 30, 2010. 
For 
benefit periods after 2009, the application must be filed during or after January and on or 
before November 15th of the following calendar year. 
With respect to application periods beginning after 2010, benefits for applications 
filed from January through June 30th will be paid in July of that year. 
Benefits for 
applications filed after June will be paid at least monthly as is now done under current 
law. For application periods beginning on or after August 1, 20 I 0, the benefit will be 
calculated on the basis of tables provided by the State Tax Assessor utilizing the benefit 
formula in current law. 
Beginning with the 2010 tax year, the Maine individual income tax booklets must 
contain the Circuitbreaker Program application and instructions. 
This amendment adds a Part E to the bill to add an appropriations and allocations 
section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 06/03/09 frac. 
P; 
... 
LD 1088 
LR 1600(02) 
An Act To Modernize the Tax Laws and Provide over $75,000,000 to Residents of the State in Tax 
Relief 
Net Cost (Savings) 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment" * " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2009-10 
2010-11 
2011-12 
($8,166,927) 
$8,111,091 
$5,667,304 
Projections 
2012-13 
($3,664,336) 
Approp.-iations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Individual Income Tax, Net General Fund Revenue 
Flat Tax Rate @ 6.5% and various new credits 
Sales and Use Tax, Net Genel'al Fund Revenue 
Meals and Lodging @ 8.5% 
Candy@ 8.5% 
Short-term auto rentals @ 12.5% 10101/09 
Expands Sales and Use Tax base * 
Sales and Use Tax - Net 
$523,073 
$0 
$8,690,000 
$350,000 
($35,650,000) 
$13,318,867 
$1,413,600 
$627,000 
$27, I 00,533 
$42,460,000 
$1,511,091 
$740,000 
($6,600,000) 
$310,000 
($94,130,000) 
$34,382,265 
$3,453,820 
$1,254,000 
$46,059,915 
$85,150,000 
$967,304 
$1,860,000 
($4,700,000) 
$1,510,000 
($94,950,000) 
$35,243,073 
$3,427,809 
$1,282,500 
$46,536,618 
$86,490,000 
$1,015,664 
$1,850,000 
$4,680,000 
$1,970,000 
($89,540,000) 
$36,559,336 
$3,533,610 
$1,330,000 
$48,457,055 
$89,880,000 
* Includes: amusement, entertainment and recreation services; certain installation, repair or maintenance services; 
personal property services; transp0l1ation and courier services and other sales tax areas. 
Real Estate Transfer Tax, General Fund Revenue 
Graduated Tax Based on Value> $500,000 
$1,880,000 
$3,190,000 
$3,760,000 
$4,340,000 
LR 1600(02) - Fiscal Note - Page I of 2 
Tax and Rent Refund Program, General Fund Revenue 
Tax and Rent Refund Program Changes 
Net General Fund Revenue 
General Fund Appropriation Summary 
Maine Revenue Services administrative costs 
Other Special Revenue Fund Summary 
Local Government Fund 
Tourism Marketing Promotion Fund 
Total Other Special Revenue 
$0 
$8,690,000 
$523,073 
$350,000 
$350,000 
($810,000) 
($6,600,000) 
$1,511,091 
($430,000) 
$740,000 
$310,000 
LRI 600(02) - Fiscal Note - Page 2 of2 
$0 
($4,700,000) 
$967,304 
($350,000) 
$1,860,000 
$1,510,000 
$(1 
$4,680,000 
$1,015,664 
$120,000 
$1,850,000 
$1,970,000 
-