An Act Related to the Report of the Tax Expenditure Review Task Force
Maine Legislature, Session 126, LD 1762
House Amendment HA_B_H603 (House)
Amends: 5 MRSA §1536, 5 MRSA §13070-J, 36 MRSA §691, 36 MRSA §5111, 36 MRSA §6652

HOUSE AMENDMENT" 8" to H.P. 1264, L.D. 1762, Bill, "An Act Related to the 
Report of the Tax Expenditure Review Task Force" 
Amend the bill by inserting after the enacting clause and before section 1 the 
following: 
'Sec. 1. 5 MRS A §1518-A, as amended by PL 2011, c. 692, §1, is repealed. 
Sec. 2. 5 MRS A §1536, sub-§I, ~A, as amended by PL 2013, c. 1, Pt. E, §2, is 
further amended to read: 
A. Forty eight Sixty-eight percent to the stabilization fund; 
Sec. 3. 5 MRS A §1536, sub-§I, ~~D and E, as amended by PL 2011, c. 692, §2 
and affected by § 3, are further amended to read: 
D. Nine percent to the Retiree Health Insurance Internal Service Fund established in 
section 1519 to be used solely for the purpose of amortizing the unfunded actuarial 
liability associated with future health benefits; and 
E. 
Ten percent to the Capital Construction and Improvements Reserve Fund 
established in section 1516-A-;-and.:. 
Sec. 4. 5 MRSA §1536, sub-§I, ~F, as enacted by PL 2011, c. 692, §2 and 
affected by §3, is repealed. 
Sec. 5. 5 MRSA §1536, sub-§3, as enacted by PL 2005, c. 2, Pt. A, §5 and 
affected by § 14, is repealed. 
Sec. 6. 5 MRSA §13070-J, sub-§I, ~D, as amended by PL 2011, c. 573, §1, is 
further amended to read: 
D. "Economic development incentive" means federal and state statutorily defined 
programs that receive state funds, dedicated revenue funds and tax expenditures as 
defined by section 1666 whose purposes are to create, attract or retain business 
entities related to business development in the State, including but not limited to: 
(1) Assistance from Maine Quality Centers under Title 20-A, chapter 431-A; 
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HOUSE AMENDMENT'.8" to H.P. 1264, L.D. 1762 
(2) 
The Governor's Jobs Initiative Program under Title 26, chapter 25, 
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subchapter 4; 
(3) Municipal tax increment financing under Title 30-A, chapter 206; 
(4) The jobs and investment tax credit under Title 36, section 5215; 
(5) The research expense tax credit under Title 36, section 5219-K; 
(6) Reimbursement for taxes paid on certain business property under Title 36, 
chapter 915; 
(7) Employment tax increment financing under Title 36, chapter 917; 
(8) The shipeuilding fasility sredit under Title 3(;, shtlj3ter 919; 
(9) The credit for seed capital investment under Title 36, section 5216-B; 
(10) The credit for pollution-reducing boilers under Title 36, section 5219-Z; and 
(11) 
The credit for Maine fishery infrastructure investment under Title 36, 
section 5216-D. 
Sec. 7. 36 MRSA §691, sub-§l, ,A, as amended by PL 2009, c. 571, Pt. II, §1 
and affected by §5, is further amended to read: 
A. "Eligible business equipment" means qualified property that, in the absence of 
this subchapter, would first be subject to assessment under this Part on or after April 
1, 2008. "Eligible business equipment" includes, without limitation, repair parts, 
replacement parts, replacement equipment, additions, accessions and accessories to 
other qualified business property that first became subject to assessment under this 
Part before April 1, 2008 if the part, addition, equipment, accession or accessory 
would, in the absence of this subchapter, first be subject to assessment under this Part 
on or after April 1, 2008. "Eligible business equipment" also includes inventory 
parts. 
"Eligible business equipment" does not include: 
(1) Office furniture, including, without limitation, tables, chairs, desks, 
bookcases, filing cabinets and modular office partitions; 
(2) Lamps and lighting fixtures used primarily for the purpose of providing 
general purpose office or worker lighting; 
(3) Property owned or used by an excluded person; 
(4) Telecommunications personal property subject to the tax imposed by section 
457; 
(5) Gambling machines or devices, including any device, machine, paraphernalia 
or equipment that is used or usable in the playing phases of any gambling activity 
as that term is defined in Title 8, section 1001, subsection 15, whether that 
activity consists of gambling between persons or gambling by a person involving 
HOUSE AMENDMENT 
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HOUSE AMENDMENT t!3 .. to H.P. 1264, L.D. 1762 
the playing of a machine. "Gambling machines or devices" includes, without 
limitation: 
(a) Associated equipment as defined in Title 8, section 1001, subsection 2; 
(b) Computer equipment used directly and primarily in the operation of a 
slot machine as defined in Title 8, section 1001, subsection 39; 
(c) 
An electronic video machine as defined in Title 17, section 1831, 
subsection 4; 
(d) Equipment used in the playing phases of lottery schemes; and 
(e) Repair and replacement parts of a gambling machine or device; 
(6) Property located at a retail sales facility and used primarily in a retail sales 
activity unless the property is oYlfled by a business that operates a retail sales 
faeility in the State exeeeding 100,000 square feet of interior e1:lstomer selling 
space that is used primarily for retail sales and whose Maine based operations 
derive less than 30% of their total annual revenue on a ealendar year basis from 
sales that are made at a retail sales faeility located in the State. For purposes of 
this subparagraph, the following terms have the following meanings: 
(a) "Primarily" means more than 50% of the time; 
(b) "Retail sales activity" means an activity associated with the selection and 
purchase of goods or services or the rental of tangible personal property. 
"Retail sales activity" does not include production as defined in section 1752, 
subsection 9-B; and 
(c) "Retail sales facility" means a structure used to serve customers who are 
physically present at the facility for the purpose of selecting and purchasing 
goods or services at retail or for renting tangible personal property. "Retail 
sales facility" does not include a separate structure that is used as a 
warehouse or call center facility; 
(7) Property that is not entitled to an exemption by reason of the additional 
limitations imposed by subsection 2; or 
(8) Personal property that would otherwise be entitled to exemption under this 
subchapter used primarily to support a telecommunications antenna used by a 
telecommunications business subject to the tax imposed by section 457. 
Sec. 8. 36 MRSA §5111, sub-§l-D, as enacted by PL 2013, c. 368, Pt. Q, §4, is 
amended to read: 
I-D. Single individuals and married persons filing separate returns; tax years 
beginning 2014. 
For tax years beginning on or after January 1, 2014, for single 
individuals and married persons filing separate returns: 
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HOUSE AMENDMENT::b" to H.P. 1264, L.D. 1762 
If Maine Taxable taxable income is: 
At least $5,200 but less than $20,900 
At least $20,900 or more but less than 
$289,000 
$289,000 or more 
The tax is: 
6.5% of the excess over $5,200 
$1,021 plus 7.95% of the excess over 
$20,900 
$21,314 plus 8.67% of the excess over 
$289,000 
Sec. 9. 36 MRS A §5111, sub-§2-D, as enacted by PL 2013, c. 368, Pt. Q, §6, is 
amended to read: 
2-D. Heads of households; tax years beginning 2014. For tax years beginning on 
or after January 1, 2014, for unmarried individuals or legally separated individuals who 
qualify as heads of households: 
If Maine Ta;J(able taxable income is: 
At least $7,850 but less than $31,350 
At least $31,350 or more but less than 
$289,000 
$289,000 or more 
The tax is: 
6.5% of the excess over $7,850 
$1,528 plus 7.95% of the excess over 
$31,350 
$22,011 plus 8.67% of the excess over 
$289,000 
Sec. 10. 36 MRSA §5111, sub-§3-D, as enacted by PL 2013, c. 368, Pt. Q, §8, is 
amended to read: 
3-D. Individuals filing married joint return or surviving spouses; tax years 
beginning 2014. For tax years beginning on or after January 1, 2014, for individuals 
filing married joint returns or surviving spouses permitted to file a joint return: 
If Maine Ta;J(able taxable income is: 
At least $10,450 but less than $41,850 
At least $41,850 or more but less than 
$289,000 
$289,000 or more 
The tax is: 
6.5% of the excess over $10,450 
$2,041 plus 7.95% of the excess over 
$41,850 
$21,689 plus 8.67% of the excess over 
$289,000 
Sec. 11. 36 MRSA §6652, sub-§l-D, as enacted by PL 2005, c. 12, Pt. BBB, §2 
and affected by §6, is amended to read: 
I-D. Retail sales facilities. Reimbursement pursuant to this chapter may not be 
made with respect to property that is located in a retail sales facility e~(6eeding 100,000 
square feet of interior eHstomer selling spaee and used primarily in a retail sales activity, 
HBless the faeility is owned by a bHsiness 'Hhose Maine based operation derives less than 
50% of its total aIlffiial reveooe on a ealendar year basis from sales that are st:tbjeet to 
Maine sales tax. This S1:l9Seetion applies to property ta~( years begifHling after April 1, 
2006. Property affeeted by this sltbseetion that was eligible for reimbHfsemeRt pHfS1:lant 
to this ehapter for property taxes paid for the 2006 property tax year is grandfathered iRto 
the program and eontiooes to be eligible for reimbHfsemeRt to the exteRt permitted by this 
ehapter as it existed on l\.pril 1, 2006, HBless that property s1:lbseqwmtly beeomes 
ineligible. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT~" to H.P. 1264, L.D. 1762 
Sec. 12. 36 MRSA c. 919, as amended, is repealed.' 
Amend the bill by striking out all of section 2 and inserting the following: 
'Sec. 2. PL 2013, c. 368, Pt. S, §9 is repealed.' 
Amend the bill by striking out all of sections 4 and 5 and inserting the following: 
'Sec. 4. Transfer from tax relief fund. 
The State Controller shall transfer 
$4,048,846 from the Tax Relief Fund for Maine Residents established in the Maine 
Revised Statutes, Title 5, section 1518-A to the unappropriated surplus of the General 
Fund no later June 30, 2015. 
Sec. 5. Application. That section of this Act that amends the Maine Revised 
Statutes, Title 36, section 691, subsection 1, paragraph A applies to property taxes based 
on the status of the property on or after April 1, 2014. Those sections of this Act that 
amend Title 36, section 5111, subsections 1-D, 2-D and 3-D apply to tax years beginning 
on or after January 1, 2014. That section of this Act that amends Title 36, section 6652, 
subsection 1-D applies to claims for reimbursement for property taxes filed for 
application periods beginning on or after August 1,2014.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment, like the bill, provides for $40,000,000 in revenue sharing to 
municipalities and, in addition, offsets the cost of those transfers with the elimination of 
certain programs or credits and the creation of a new top income tax bracket and rate. 
This amendment does the following: 
1. It retains the provision of the bill that eliminates the reduction of transfers to state-
municipal revenue sharing by $40,000,000; 
2. 
It transfers from the Tax Relief Fund for Maine Residents $4,048,846 and 
eliminates that fund. The 20% transferred from the unappropriated surplus at the close of 
the fiscal year is added to the amount transferred to the Maine Budget Stabilization Fund; 
3. 
It strikes the portion of the bill that transfers funds from the Maine Budget 
Stabilization Fund; 
4. It repeals the shipbuilding facility credit under the Maine Revised Statutes, Title 
36, chapter 919; 
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5. 
It eliminates eligibility under the Business Equipment Tax Reimbursement 
program for property located at a retail sales facility and used primarily in a retail sales 
activity; and 
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6. It creates a new individual income tax rate of 8.67% that is imposed on income 
over $289,000. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSOREDBY~ 
__ ~ ______ ~ 
_____ ~ 
__ ~~7 ______ _ 
(Representative STUCKEY) 
TOWN: Portland 
HOUSE AMENDMENT 
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Approved: 02/07114 
~ac;:. 
LD 1762 
LR 2721(02) 
An Act Related to the Report of the Tax Expenditure Review Task Force 
Fiscal Note for House AmendmentA, to Original BiII 
Sponsor: Rep. Stuckey of Portland 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
FY 2014-15 
Projections 
FY 2015-16 
Projections 
FY 2016-17 
Net Cost (Savings) 
General Fund 
$0 
($14,151,132) 
($29,909,182) 
($30,403,371) 
Revenue 
General Fund 
Other Special Revenue Funds 
Transfers 
General Fund 
Fiscal Detail and Notes 
$0 
$0 
$0 
$35,151,132 
$1,620,300 
($21,000,000) 
$29,909,182 
$1,295,584 
$0 
$30,403,371 
$1,329,952 
$0 
This amendment decreases the General Fund costs of the bill by $14,151,132 in fiscal year 2014-15, $29,909,182 in 
fiscal year 2015-16 and $30,403,371 in fiscal year 2016-17. It eliminates the transfer from the Maine Budget 
Stabilization Fund to the General Fund unappropriated surplus contained in the bill and makes the following changes 
increasing General Fund revenue and transfers for Municipal Revenue Sharing. 
FY 2013-14 
FY 2014-15 
FY 2015-16 
FY 2016-17 
New income tax bracket with a rate of8.67% for taxable income of $289,000 beginning in 2014 tax year 
- General Fund 
$0 
$27,935,700 
$21,766,096 
$22,419,078 
- Municipal Revenue Sharing 
$0 
$1,470,300 
$1,145,584 
$1,179,952 
Repeal the Shipbuilding Facility Credit 
- General Fund 
$0 
$2,850,000 
$2,850,000 
$2,850,000 
- Municipal Revenue Sharing 
$0 
$150,000 
$150,000 
$150,000 
Exclude Retail Facilities from BETR and BETE Programs 
- General Fund 
$0 
$4,365,432 
$5,293,086 
$5,134,293 
LR2721 (02) - Fiscal Note - Page 1 of 1