An Act To Provide Income Tax Relief
Maine Legislature, Session 126, LD 1124
Committee: Taxation
Sponsors: STUCKEY, ALFOND, BROOKS, CHAPMAN, EVANGELOS, GILBERT, KUSIAK, PRIEST, SANBORN
Amends: 36 MRSA §5111

Legislative Document 
No. 1124 
H.P. 796 
House of Representatives, March 21, 2013 
An Act To Provide Income Tax Relief 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative STUCKEY of Portland. 
Cosponsored by President ALFOND of Cumberland and 
Representatives: BROOKS of Winterport, CHAPMAN of Brooksville, EVANGELOS of 
Friendship, GILBERT of Jay, KUSIAK of Fairfield, PRIEST of Brunswick, SANBORN of 
Gorham. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5111, sub-§1-C, as enacted by PL 2011, c. 380, Pt. N, §2 and 
affected by §19, is amended to read: 
1-C.  Single individuals and married persons filing separate returns; tax year 
2013.  For the tax years year beginning on or after January 1, 2013 and before January 1, 
2014, for single individuals and married persons filing separate returns: 
Sec. 2.  36 MRSA §5111, sub-§2-C, as enacted by PL 2011, c. 380, Pt. N, §4 and 
affected by §19, is amended to read: 
2-C.  Heads of households; tax year 2013.  For the tax years year beginning on or 
after January 1, 2013 and before January 1, 2014, for unmarried individuals or legally 
separated individuals who qualify as heads of households: 
Sec. 3.  36 MRSA §5111, sub-§3-C, as enacted by PL 2011, c. 380, Pt. N, §6 and 
affected by §19, is amended to read: 
3-C.  Individuals filing married joint return or surviving spouses; tax year 2013.  
For the tax years year beginning on or after January 1, 2013 and before January 1, 2014, 
for individuals filing married joint returns or surviving spouses permitted to file a joint 
return: 
Sec. 4.  36 MRSA §5111, sub-§6 is enacted to read: 
6.  Balancing of tax brackets.  For tax years beginning on or after January 1, 2014, 
taxes assessed under this section are calculated using income tax bracket thresholds 
calculated under this subsection. 
A.  By October 1, 2013 and every 5 years thereafter, the assessor shall calculate 
income tax bracket thresholds for single persons and married persons filing 
separately, married persons filing jointly and surviving spouses and heads of 
household that result in the balancing of individual income taxes so that the following 
If Maine Taxable income is: 
The tax is: 
At least $5,000 but less than $19,950 
6.5% of the excess over $5,000 
$19,950 or more 
$972 plus 7.95% of the excess over 
$19,950 
If Maine Taxable income is: 
The tax is: 
At least $7,500 but less than $29,900 
6.5% of the excess over $7,500 
$29,900 or more 
$1,456 plus 7.95% of the excess over 
$29,900 
If Maine Taxable income is: 
The tax is: 
At least $10,000 but less than $39,900 
6.5% of the excess over $10,000 
$39,900 or more 
$1,944 plus 7.95% of the excess over 
$39,900 
percentages of tax filers for each filing status pay the following top marginal tax rates 
ranked from lowest taxable income to highest taxable income: 
B.  For purposes of making the calculation under paragraph A, the following 
provisions apply. 
(1)  When determining the percentage of filers, the assessor shall use the average 
number of Maine resident filers for the 5 years prior to the calculation. 
(2)  The percentage of filers must be determined for each filing status of: single 
persons and married persons filing separately; married persons filing jointly and 
surviving spouses; and heads of household. 
(3)  The top marginal tax rates are for Maine taxable income. 
C.  The income tax bracket thresholds calculated under paragraph A apply to tax 
years beginning on or after the January 1st following the determination of the new 
bracket thresholds. 
D.  The assessor shall submit a report to the joint standing committee of the 
Legislature having jurisdiction over taxation matters by the October 15th of the year 
of calculation containing the new income tax bracket thresholds, describing the 
method used to make the calculation and the bracket threshold amounts and 
estimating the impact of the new rates on individual income tax revenues. 
SUMMARY 
This bill reforms the Maine income tax by establishing a rate structure that includes 6 
income tax bracket thresholds with top marginal tax rates from 0% to 10%. The income 
thresholds for each rate are calculated by the State Tax Assessor every 5 years to 
maintain the same level of progressivity of the tax by maintaining the same percentage of 
taxpayers in each top marginal rate category. 
Top marginal tax rate 
Percentage of filers 
0% 
18% 
2% 
22% 
4.5% 
22% 
7% 
17% 
8.5% 
13% 
10% 
8%