An Act Mnking Unified Appropriations and Allocations for the Expenditures of State Governmt::nt, General Fund and Other Funds and Changing Certain Provisions of the Law NecessaIY to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2014 and June 30, 20 IS
Maine Legislature, Session 126, LD 1509
Committee Amendment CA_A-HA_N_H493 (House)
Amends: 36 MRSA §200, 36 MRSA §51

MAINE STATE LEGISLATURE 
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Date:!, -13-13 
L.D. 1509 
(Filing No. H-ifq3J 
Reproduced and distributed under the direction of the Clerk of the House. 
lZ6TH LEGISLATURE 
HOUSE AMENDMENT "'V" to COMMITTEE AMENDMENT "A" to H.P. 1079, 
L.D. 1509, Bill, "An Act Mnking Unified Appropriations and Allocations for the 
Expenditures of State Governmt::nt, General Fund and Other Funds and Changing Certain 
Provisions of the Law NecessaIY to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2014 and June 30, 20 IS" 
Amend the amendment in Part L by inserting before section 1 the following: 
'Sec. L-l. 36 MRSA §200, sub-§l, ~A, as enacted by PL 1997, c. 744, §l, is 
amended to read: 
A. 
Part 1 of the report must describe the overall incidence of all state, local and 
county taxes. The report must present infonnation on the distribution of the tax 
burden: 
(1) 
For the overall income distribution, using a measure of system-wide 
incidence that appropriately measures equality and inequality; 
(2) 
By income classes, including, at a minimum, deciles of the income 
distribution; aad 
(3) By other appropriate taxpayer characteristics.; and 
(4) The report must include a calculation of the average effective tax rate on state 
and local taxes paid by the top I % of tax families and the bottom 99% of tax 
families. For purposes of this paragraph, "average effective tax rate on state and 
local taxes paid" and "tax families" have the same meaning as section 5111-C, 
subsection 1. 
Sec. L-2. 36 MRSA §51l1-C is enacted to read: 
§5111-C. Tax equalization assessment 
1. Definitions. As used in this section, unless the context otherwise indicates, the 
following tenns have the following meanings. 
A. "Average effective tax rate on state and local taxes paid" means a fraction, based 
on statewide tax family dat2, for the taxable year, the numerator of which is the sum 
Page I - 126LRI046(21)-1 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "rf'., to COMMITTEE AMENDMENT "An to H.P. 1079, L.D. 1509 
of income tax liability, property taxes accrued on a homestead and sales taxes paid 
and the denominator of which is expanded income for the taxable year. 
B. "Expanded income" means total income required to be reported on federal Form 
1040 for the taxable year, plus tax exempt interest earned during the taxable year and, 
to the extent included in the calculation of federal total income, the absolute value of 
the amount of trade or business loss, net operating loss, capital loss, farm loss or 
partnership or S corporation loss. 
C. "Homestead" means any residential property, including cooperative property, in 
this State assessed as real property owned by a tax family or held in a revocable 
living trust for a tax family and occupied as a permanent residence or owned by a 
cooperative housing corporation and occupied as a permanent residence by a tax 
family that is a qualifying shareholder. 
"Homestead" does not include any real 
property used solely for commercial purposes. 
D. "Income tax liability" means the total amount of tax that a tax family estimates 
will be due for a taxable year under this Part, exclusive of a withholder's liability for 
taxes withheld, less any allowable credits for that taxable year. "Income tax liability" 
does not include the assessment under subsection 2. 
E. "Individual effective tax rate on state and local taxes paid" mc~ans a fraction, the 
numerator of which is the sum, for the tax year, of a tax family's income tax paid to 
other jurisdictions, income tax liability, property taxes accrued on a tax family's 
homestead and sales taxes paid and the denominator of which is the tax family's 
expanded income for the tax. 
F. "Permanent residence" means that place where a tax family has a true, fixed and 
permanent home and principal establishment to which a tax family, whenever absent, 
has the intention of returning. A tax family may have only one pl~rmanent residence 
at a time and, once a permanent residence is established, that residence is presumed 
to continue until circumstances indicate otherwise. 
G. "Sales taxes paid" means state sales and use tax reported as an itemized deduction 
for federal income tax purposes or, if not included as an itemized deduction, the 
amount as calculated by the federal optional state sales tax tables. 
H. "Tax equalization assessment" is an amount, which may not be less than zero, 
equal to the difference in the average effective tax rate on state and local taxes paid 
and a tax family's individual effective tax rate on state and local taxes paid multiplied 
by a tax family's expanded income. 
I. "Tax family" or "tax families" means a grouping of individuals based on tax filing 
status. 
2. Assessment. For tax years beginning on or after January 1, 2013, in addition to 
all other taxes contained in this Part, a tax family must pay a tax equa.lization assessment 
if, for the tax year, a tax family has the following: 
A. An individual effective tax rate on state and local taxes paid that is less than the 
average effective tax rate on state and local taxes paid by the 1bottom 99% of tax 
families as calculated in section 200, subsection 1, paragraph A; and 
HOUSE AMENDMENT' 
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HOUSE AMENDMENT 'iV' to COMMITTEE AMENDMENT "A" to H.P. 1079, L.D. 1509 
B. An expanded income of $250,000 or more for a tax family filing as a single 
individual or a married person filing a separate return, $325,000 or more for a tax 
family filing as an unmarried individual or legally separated individual who qualifies 
as a head of household or $400,000 or more for a tax family filing as an individual 
filing a married joint return or a surviving spouse permitted to file a joint return. 
3. 
Revenue. 
Beginning in 2015, by January 15th annually, the assessor shall 
determine the revenue generated by the assessment imposed pursuant to subsection 2 and 
the cost of the credit allowed pursuant to section 5219-II for the tax year before the 
immediately prior tax year. The difference between the revenue and the cost must be 
transferred to the Maine Budget Stabilization Fund established in Title 5, section 1532.' 
Amend the amendment in Part L in §5219-II by striking out all of subsection 2 (page 
579, lines 4 to 17 in amendment) and inserting the following: 
'2. Credit. A resident individual with Maine adjusted gross income up to $40,000 is 
allowed a credit against the taxes paid under this Part during the tax year in an amount 
equal to the amount by which the benefit base exceeds 8% of the resident individual's 
Maine adjusted gross income as defined under section 5102, subsection I-C, paragraph 
A, but the credit may not exceed $500 for a resident individual under 70 years of age and 
$600 for a resident individual 70 years of age and older. The credit may not be less than 
$10.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consel;utively. 
SUMMARY 
This amendment, for tax years beginning on or after January 1, 2013, requires 
payment of a tax equalization assessment if a resident taxpayer has an expanded income 
of at least $250,000 for single J1lers, $325,000 for head of household filers or $400,000 
for joint filers and an effective tax rate that is less than the average effective tax rate on 
state and local taxes paid by the bottom 99% of income earners. It increases the property 
tax fairness credit proposed in Committee Amendment "A" to a maximum of $500 for 
resident individuals under 70 years of age and $600 for resident individuals 70 years of 
age and older. Any excess revenue generated by the tax equalization assessment must go 
to the Maine Budget Stabilization Fund. 
SPONSOREDBY:~ kw...-y 
(Representative STUCKEY) 
TOWN: Portland 
nKALNOTI UQlJIRED 
(lee""" 
HOU,SE AMENDMENT 
Approved: 06/13/13 ;tvac:.. 
126th MAINE LEGISLATUru: 
LD 1509 
LR 1046(21) 
An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, 
General Fund and Other Funds and Changing Certain Provisions of the Law Necessary to the Proper 
Operations of State Government for the Fiscal Years Ending June 30, 2014 and June 30, 2015 
Fiscal Note for House Amendment" /II" to Committee Amendment" A" 
Sponsor: Rep. Stuckey of Portland 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
Projections 
FY 2013-14 
FY 2014-15 
FY 2015-16 
FY 2016-17 
Net Cost (Savings) 
General Fund 
($475,000) 
($1,309,100) 
($5,247,069) 
($8,316,310) 
Revenue 
General Fund 
$475,000 
$1,309,100 
$5,247,069 
$8,316,310 
Other Special Revenue Funds 
$25,000 
$70,900 
$252,931 
$433,690 
Fund Detail by Section 
Revenue 
General Fund 
PARTL 
$475,000 
$1,309,100 
$5,247,069 
$8,316,310 
Other Special Revenue Funds 
PARTL 
$25,000 
$70,900 
$252,931 
$433,690 
Fiscal Detail and Notes 
The tax changes in this amendment increase General Fund revenue by a net amount of $475,000 in fiscal year 2013-14 
and $1,309,100 in fiscal year 2014-15. A balance budget is maintained for the 2014-2015 biennium. 
LR1046(21) - Fiscal Note - Page 1 of 1