An Act To Reform Maine Revenue Services Procedures
Maine Legislature, Session 125, LD 0868
Committee: Taxation
Sponsors: TRAHAN, McKANE, COURTNEY, MARTIN, PLOWMAN, SNOWE-MELLO, BENNETT, HARMON, KNIGHT, WATERHOUSE
Amends: 36 MRSA §112

Legislative Document 
No. 868 
S.P. 272 
In Senate, March 8, 2011 
An Act To Reform Maine Revenue Services Procedures 
Reference to the Committee on Taxation suggested and ordered printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator TRAHAN of Lincoln. 
Cosponsored by Representative McKANE of Newcastle and 
Senators: COURTNEY of York, MARTIN of Kennebec, PLOWMAN of Penobscot, SNOWE-
MELLO of Androscoggin, Representatives: BENNETT of Kennebunk, HARMON of Palermo, 
KNIGHT of Livermore Falls, WATERHOUSE of Bridgton. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §112, sub-§1, as repealed and replaced by PL 1999, c. 127, Pt. 
A, §47, is amended to read: 
1.  General powers and duties.  The assessor shall administer and enforce the tax 
laws enacted under this Title and under Title 29-A, and may adopt rules and require such 
information to be reported as necessary.  The assessor may investigate, enforce and 
prosecute activities defined as crimes in this Title and in Title 17-A, sections 358, 751 
and 903.  The assessor shall provide, at the time of issuance, to one or more entities that 
publish a monthly state tax service all rules, bulletins, taxpayer notices or alerts, notices 
of rulemaking, any other taxpayer information issued by the assessor, and all substantive 
amendments or modifications of the same, for publication by that entity or entities.  When 
a significant change has occurred in bureau policy or practice or in the interpretation by 
the bureau of any law, rule or instruction bulletin, the assessor shall, within 60 days of the 
change, provide to the same publishing entity or entities written notice, suitable for 
publication, of the change. Before implementing a change in bureau policy or practice or 
in the interpretation by the bureau of any law, rule or instruction bulletin that results in 
additional revenue to the State, the bureau shall notify the joint standing committee of the 
Legislature having jurisdiction over taxation matters of the proposed change and adopt 
major substantive rules pursuant to Title 5, chapter 375, subchapter 2-A to implement the 
change. 
Sec. 2.  36 MRSA §112, sub-§4, as amended by PL 2003, c. 668, §7 and affected 
by §12, is further amended to read: 
4.  Examination of records and premises. Whenever necessary to the 
administration of this Title, the assessor may make, or cause to be made by an employee, 
an examination or investigation of the place of business, books and other documents and 
any other relevant personal property of any person who the assessor has reason to believe 
is liable for any tax imposed by this Title. 
Except in the case of a criminal investigation, the assessor shall notify a taxpayer that is 
the subject of an audit under this section as soon as an audit has been initiated.  The 
notice must state the reason for the audit, the rights of the taxpayer and the potential 
impact on the taxpayer of the audit.  The assessor or any employee conducting an audit 
under this section shall record all conversations with the taxpayer during the course of the 
audit and preserve those recordings until the conclusion of all enforcement proceedings 
and appeals. 
At the conclusion of an audit, the assessor or an agent shall conduct an audit conference 
with the taxpayer and shall give the taxpayer a written summary of the audit findings, 
including the legal basis for the audit findings and adjustments, along with copies of 
relevant bureau audit workpapers. 
SUMMARY 
This bill requires the Department of Administrative and Financial Services, Bureau of 
Revenue Services, prior to implementing a change in policy or practice or in 
interpretation of any law, rule or bulletin that will result in additional revenue to the State, 
to notify the joint standing committee of the Legislature having jurisdiction over taxation 
matters and to implement the change through major substantive rulemaking, which is 
subject to review by the Legislature. 
The bill also requires the State Tax Assessor to notify a taxpayer when an audit has 
been initiated and to record and to preserve all conversations with the taxpayer during the 
course of the audit.