An Act To Require Review of Certain Changes to Sales Tax Policy Application or Practice prior to Implementation
Maine Legislature, Session 125, LD 0590
Committee Amendment CA_C_H718 (House)
Amends: 36 MRSA §194-A

COMMITTEE AMENDMENT ,,~, to H.P. 448, L.D. 590, Bill, "An Act To 
Require Review of Certain Changes to Sales Tax Policy Application or Practice prior to 
Implementation" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Codify the Review Practice of Certain Changes in the Application of the 
Sales and Use Tax Law' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §194-A is enacted to read: 
§194-A. Review of certain changes in the application of sales and use tax law 
1. Consultation. Before implementing a significant change in policy, practice or 
interpretation of the sales and use tax law that would result in additional revenue, the 
bureau shall consult with the Office of the Attorney General to determine if the change 
should be reviewed by the appropriate legislative committee of oversight. If the 
consultation results in an agreement that a proposed change in policy, practice or 
interpretation of the sales and use tax law is a significant change that would result in 
additional revenue and should be reviewed by the appropriate legislative committee of 
oversight, the bureau shall notify the appropriate legislative committee of oversight 
pursuant to subsection 2. 
2. Notification and review. If, pursuant to subsection 1, the Office of the Attorney 
General and the bureau agree that a proposed change in policy, practice or interpretation 
of the sales and use tax law is a significant change that would result in additional revenue 
and should be reviewed by the appropriate legislative committee of oversight, the bureau 
shall notify the chairs of the appropriate legislative committee of oversight of the results 
of the consultation at least 45 days prior to implementation of the change in policy, 
practice or interpretation of the sales and use tax law, if reasonably practicable. The 
chairs of the legislative committee of oversight shall notify all committee members in 
COMMITTEE AMENDMENT 
R. of S. 
COMMITTEE AMENDMENT "L to H.P. 448, L.D. 590 
writing of the proposed change in policy, practice or interpretation of the sales and use 
tax law and may schedule a time for committee review and discussion. 
3. Report. The bureau shall report annually by January 15th to the joint standing 
committee of the Legislature having jurisdiction over taxation matters regarding the 
consultation process and, consistent with attorney-client privilege and any other legal 
privilege and legal confidentiality requirements, provide a brief summary of the issues for 
which a consultation was sought and the results of each consultation. 
4. 
Assessment validity. 
The provisions of this section establish a procedural 
consultation and reporting requirement to assist routine legislative oversight. It does not 
affect the validity of any assessment or tax liability under this Title.' 
SUMMARY 
This amendment changes the title and replaces the bill. It codifies and expands upon 
previously enacted but unallocated law and the current practice of the Department of 
Administrative and Financial Services, Bureau of Revenue Services related to 
implementing a significant change in policy, practice or interpretation of the sales and use 
tax law that would result in additional revenue. It requires the bureau to consult with the 
Office of the Attorney General to detennine if the change should be reviewed by the 
appropriate legislative committee of oversight prior to implementation. The amendment 
requires the bureau to notify the committee chairs at least 45 days prior to the 
implementation of the change in policy, practice or interpretation of the sales and use tax 
law, if reasonably practicable. It requires the bureau to report annually to the joint 
standing committee of the Legislature having jurisdiction over taxation matters on the 
consultation process and to summarize the issues as pennitted by law. It also specifies 
that the provisions proposed in this amendment establish a procedural consultation and 
reporting requirement to assist routine legislative oversight and do not affect the validity 
of any assessment or tax liability under current law. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/16112 
;t?ac.. 
LD590 
LR 1599(07) 
An Act To Require Review of Certain Changes to Sales Tax Policy Application or Practice prior to 
Implementation 
Fiscal Note for Bill as Amended by Committee Amendment ,,6 (H -7/ B) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
The bill as amended codifies previously enacted but unallocated law, which is the current practice of Maine Revenue 
Services, regarding consultation with the Attorney General's Office related to significant changes in policy, practice or 
interpretation of the sales and use tax law. Any costs are expected to be minor and can be absorbed by the Department 
ofthe Attorney General and Maine Revenue Services within existing budgeted resources. 
LR1S99(07) - Fiscal Note - Page 1 of 1