An Act To Improve Maine's Tax Laws
Maine Legislature, Session 126, LD 1120
Committee Amendment CA_A_H749 (House)
Amends: 36 MRSA §5200

COMMITTEE AMENDMENT "f} " to H.P. 792, L.D. 1120, Bill, "An Act To 
Improve Maine's Tax Laws" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 36 MRSA §5200, sub-§5, as enacted by PL 2005, c. 457, Pt. FFF, § 1 and 
affected by §2, is repealed and the following enacted in its place: 
5. Net income. For purposes of this section, "net income" means for any taxable 
year the total of the following as modified by section 5200-A: 
A. The taxable income of the taxpayer for that taxable year under the laws of the 
United States; and 
B. The taxable income or loss of any corporation that is a member of a unitary group 
and that is incorporated in any of the following jurisdictions: the Principality of 
Andorra, Anguilla, Antigua and Barbuda, Aruba, the Commonwealth of the 
Bahamas, the Kingdom of Bahrain, Barbados, Belize, Bermuda, the British Virgin 
Islands, the Cayman Islands, the Cook Islands, the Republic of Cyprus, the 
Commonwealth of Dominica, Gibraltar, Grenada, the Bailiwick of Guernsey, the Isle 
of Man, the Bailiwick of Jersey, the Republic of Liberia, the Principality of 
Liechtenstein, the Grand Duchy of Luxembourg, Malta, the Republic of the Marshall 
Islands, the Republic of Mauritius, the Principality of Monaco, Montserrat, the 
Republic of Nauru, the Caribbean Netherlands, Niue, the Independent State of 
Samoa, the Republic of San Marino, the Republic of Seychelles, the Federation of St. 
Christopher and Nevis, St. Lucia, St. Vincent and the Grenadines, the Turks and 
Caicos Islands, the United States Virgin Islands and the Republic of Vanuatu. 
Sec. 2. Rules. The State Tax Assessor shall adopt rules to determine the income or 
loss for a corporation that is a member of a unitary group that is not otherwise required to 
file a consolidated federal return and to prevent double taxation or double deduction of 
any amount included in the computation of net income under the Maine Revised Statutes, 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT 'A" to H.P. 792, L.D. 1120 
Title 36, section 5200, subsection 5. Rules adopted pursuant to this section are major 
substantive rules as described in Title 5, chapter 375, subchapter 2-A. 
Sec. 3. Application. This Act applies to tax years beginning on or after January 1, 
2015.' 
SUMMARY 
This amendment replaces the bill, which was a concept draft, and requires 
corporations that file unitary income tax returns in Maine to include income from certain 
jurisdictions outside the United States in net income when apportioning income among 
tax jurisdictions. The State Tax Assessor is required to adopt major substantive rules to 
determine the income or loss attributable to such corporations and to prevent double 
taxation or deduction of income. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
\. 
Approved: 03117114 Mac-
LD 1120 
LR 1705(02) 
An Act To Improve Maine's Tax Laws 
Fiscal Not~ for Bill as Amended by Committee Amendment #' cH -7 Lj-q 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
$0 
$0 
$0 
$0 
FY 2014-15 
$0 
$0 
$0 
$0 
Projections 
FY 2015-16 
Projections 
FY 2016-17 
($4,722,199) 
($5,056,223) 
$265,301 
$4,987,500 
$262,500 
$216,277 
$5,272,500 
$277,500 
The amendment requires corporations who file unitary income tax returns to include income from certain jurisdictions 
outside the United States in net income when apportioning income among tax jurisdictions. It would result in an 
increase in General Fund and Local Government Fund revenue of $4,987,500 and $262,500, respectively, in fiscal 
year 2015-16 and $5,272,500 and $277,500, respectively, in fiscal year 2016-17. Maine Revenue Services will 
require a General Fund appropriation of $265,301 in fiscal year 2015-16 and $216,277 in fiscal year 2016-17 for one 
Staff Attorney position, one Tax Analyst position, computer programming charges and related costs to apply the new 
law. 
LR1705(02) - Fiscal Note - Page 1 of 1