An Act To Require Review of Certain Changes to c,.tles Tax Policy Application or Practice prior to Implementation
Maine Legislature, Session 125, LD 0590
Committee Amendment CA_B_H435 (House)
Amends: 36 MRSA §141

COMMITTEE AMENDMENT '8" to H.P. 448, L.D. 590, Bill, "An Act To 
Require Review of Certain Changes to c,.tles Tax Policy Application or Practice prior to 
Implementation" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §141, sub-§4 is enacted to read: 
4. Audit assessment limitation. Notwithstanding the other provisions of this Title, 
after an audit of a taxpayer, the assessor may assess additional sales and use taxes against 
the taxpayer only if the law imposing the tax had been in effect for more than 90 days 
when the tax was first due and the assessor determines that the nonpayment or 
underpayment of taxes was the result of: 
A. A taxpayer's intentional disregard of the sales and use tax law or a taxpayer's 
fraud with the intent to evade tax liability; 
B. A mathematical error in the calculation of taxes paid or owed by the taxpayer; or 
C. An underpayment or nonpayment of taxes when at least a majority of taxpayers 
currently pay taxes on the same types of sales or uses or the taxpayer has previously 
demonstrated awareness ofthe obligation to pay the tax. 
For the purpose of this subsection, "additional sales and use taxes" means taxes assessed 
on sales or uses that have not been previously assessed against the taxpayer for the same 
types of sales or uses. 
If the assessor determines that a tax has not been paid or has been underpaid and the 
assessor is unable to assess additional sales and use taxes, interest or penalties because 
none of the conditions described in paragraphs A to C have been met, the assessor may 
submit draft legislation to the joint standing committee of the Legislature having 
jurisdiction over taxation matters or propose major substantive rules to clarify the 
situations in which the additional sales and use tax is due.' 
COMMITTEE AMENDMENT 
\\ ... 
COMMITTEE AMENDMENT ".i)" to H.P. 448, L.D. 590 
SUMMARY 
This amendment, which is the minority report, replaces the bill and provides that the 
State Tax Assessor may assess additional sales and use taxes as a result of nonpayment or 
underpayment only if the tax has not been recently in effect, if there has been fraud with 
the intent to evade taxes, if there has been a mathematical error in the calculation of taxes 
owed, if a majority of taxpayers in similar situations currently pay taxes on the same 
types of sales or uses or if the taxpayer has previously demonstrated awareness of the 
obligation to pay the tax. 
The amendment also authorizes the assessor to submit 
legislation or to propose major substantive rules to clarify tax obligations. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05124111 
frac;. 
LD590 
LR 1599(03) 
An Act To Require Review of Certain Changes to Sales Tax Policy Application or Practice prior to 
Implementation 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment :13>' 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
$9,975,000 
$13,871,900 
Projections 
FY 2013-14 
$14,288,057 
Projections 
FY 2014-15 
$14,745,275 
($13,871,900) 
($14,288,057) 
($14,745,275) 
Other Special Revenue Funds 
($9,975,000) 
($525,000) 
($730,100) 
($752,003) 
($776,067) 
Fiscal Detail and Notes 
Providing that the State Tax Assessor may assess additional sales and use taxes as a result of nonpayment or 
underpayment only if the tax has not been recently enacted, there has been fraud with intent to evade taxes, a 
mathematical calculation error, a majority of taxpayers in similar situations currently pay the same type of taxes or the 
taxpayer has previously demonstrated awareness of the obligation to pay the tax will reduce General Fund revenue and 
reduce revenue sharing starting in fiscal year 2011-12. 
LRI599(03) - Fiscal Note - Page 1 of 1