An Act Regarding Corporate Income Tax Disclosure
Maine Legislature, Session 126, LD 1126
Committee: Taxation
Sponsors: STUCKEY, BROOKS, GOODE
Amends: 13-C MRSA §1624, 36 MRSA §191

Legislative Document 
No. 1126 
H.P. 798 
House of Representatives, March 21, 2013 
An Act Regarding Corporate Income Tax Disclosure 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative STUCKEY of Portland. 
Cosponsored by Representatives: BROOKS of Winterport, GOODE of Bangor. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  13-C MRSA §1624 is enacted to read: 
§1624.  Annual tax disclosure statement 
1.  Required filing of annual tax disclosure statement.  No later than 30 days 
following the filing of a tax return under Title 36, Part 8, a corporation authorized to do 
business in this State shall file with the Secretary of State, in an electronic format 
specified by the Secretary of State, a tax disclosure statement as described in subsection 2 
unless excused as provided in section 1621, subsection 4 or 6. In the case of a corporation 
not required to file a tax return under Title 36, Part 8, the tax disclosure statement must be 
filed within 90 days of filing a federal tax return or a federal consolidated return. For 
purposes of this section, "corporation" includes a domestic corporation and a foreign 
corporation and a financial institution as defined in Title 36, section 5206-D, subsection 
8, but does not include a qualified personal service corporation, as defined in Section 448 
of the Code. 
2.  Content of tax disclosure statement.  The Secretary of State shall adopt rules 
that specify the information that must be in the tax disclosure statement under subsection 
1, including the following as applicable: 
A.  The information required under section 1621, subsection 1; 
B.  The name and the street address of a corporation that owns, directly or indirectly, 
50% or more of the voting stock of the corporation; 
C.  The corporation's North American Industry Classification System code number; 
D.  The unique code number assigned by the Secretary of State to identify the 
corporation, which remains constant from year to year; 
E.  Information reported on or used in preparing a combined report required by Title 
36, sections 5206-G and 5244 or, in the case of a corporation not required to file a 
report under Title 36, section 5206-G or 5244, the information that would be required 
to be reported on or used in preparing the report if the corporation were required to 
file such a report, including as applicable: 
(1) Total receipts of the affiliated group of which the corporation is a member; 
(2) Total cost of goods sold claimed as a deduction from gross income by the 
affiliated group of which the corporation is a member; 
(3) Taxable income of the corporation and the affiliated group of which the 
corporation is a member prior to net operating loss deductions or apportionment; 
(4) Property, payroll and sales apportionment factors of the corporation and the 
overall apportionment factor as calculated on the combined report; 
(5) Total business income and nonbusiness income of the corporation 
apportioned to the State; 
(6) Net operating loss deduction, if any, of the corporation apportioned to the 
State; 
(7) Total tax before credits; 
(8) Each tax credit claimed and accumulated tax credit carry-overs, enumerated 
by credit; 
(9) Alternative minimum tax due; and 
(10) Tax due and tax paid including tax paid under protest; 
F.  Total deductions for management services fees, for rent and for royalty, interest, 
license fee and similar payments for the use of intangible property paid to any 
affiliated entity that is not included in the affiliated group that includes the 
corporation and the names and principal office addresses of the entities to which the 
payments were made; 
G.  A description of the source of any nonbusiness income reported on the report and 
the identification of the state to which such income was reported; 
H.  A list of all corporations included in the affiliated group that includes the 
corporation, their state identification numbers and a listing of all variations in the 
affiliated group that includes the corporation used in filing corporate income or 
franchise tax returns; 
I.  Full-time-equivalent employment of the corporation in the State on the last day of 
the tax year for which the return is being filed and for the 3 previous tax years; 
J.  In the case of a publicly traded corporation incorporated in the United States or the 
affiliate of such a publicly traded corporation, profits before tax reported on the 
United States Securities and Exchange Commission Form 10-K for the corporation, 
or the affiliated group of which the corporation is a member, for the corporate fiscal 
year that contains the last day of the tax year for which the return is filed; and 
K.  Property and payroll factors for the corporation for this State calculated on the 
basis of combined reporting. 
3.  Alternative tax disclosure statement.  The Secretary of State shall adopt rules 
that specify the information that, instead of the statement required in subsection 2, a 
corporation doing business in this State but not required to file a tax return under Title 36, 
Part 8 may file with the Secretary of State including, but not limited to: 
A.  The information specified in subsection 2, paragraphs A to D; 
B.  An explanation of why the corporation is not required to file a corporate income 
tax return in this State; and 
C.  A range for the corporation's total gross receipts from sales to purchasers in the 
tax year for which the tax disclosure statement otherwise would be due. 
4.  Supplemental information.  A corporation submitting a tax disclosure statement 
required by this section may submit supplemental information that, in its sole judgment, 
could facilitate proper interpretation of the information included in the statement. 
5.  Amended tax disclosure statement.  If a corporation files an amended tax return, 
the corporation shall file a revised statement under this section within 60 calendar days 
after the amended return is filed. If a corporation's tax liability for a tax year is changed as 
the result of an uncontested audit adjustment or final determination by the Department of 
Administrative and Financial Services, Bureau of Revenue Services, the Maine Board of 
Tax Appeals or Superior Court as provided for in Title 36, sections 151 and 151-D, the 
corporation shall file a revised statement under this section within 60 calendar days of the 
final determination. 
6.  Public access.  A statement required under this section is a public record. The 
Secretary of State shall, no sooner than the first day of the 3rd calendar year that follows 
the tax year applicable to the tax disclosure statement required under subsection 1, make 
all information contained in the statement available to the public on an ongoing basis in 
the form of a searchable database accessible through the Internet. The Secretary of State 
shall adopt rules needed to implement this subsection. 
7.  Compliance.  The chief operating officer of a corporation shall attest in writing to 
the accuracy of the statements required under this section. The Department of 
Administrative and Financial Services, Bureau of Revenue Services shall act as the agent 
of the Secretary of State to audit a corporation's tax disclosure statement under the normal 
procedures applicable to corporate income tax return audits. The Secretary of State shall 
adopt rules for oversight and penalties for violations of this section. The Secretary of 
State shall publish on the Secretary of State's publicly accessible website the name and 
penalty imposed upon a corporation subject to a penalty for failing to file the required 
statement or filing an inaccurate statement. 
8.  Rules.  Rules adopted pursuant to this section are major substantive rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 2.  36 MRSA §191, sub-§2, ¶U-1 is enacted to read: 
U-1.  The disclosure by employees of the bureau to designated representatives of the 
Secretary of State of information required by the Secretary of State for the 
administration of the tax disclosure statement under Title 13-C, section 1624; 
Sec. 3.  Application.  This Act applies to tax years beginning on or after January 1, 
2014. 
SUMMARY 
This bill requires a corporation that files a tax return with the State to file a tax 
disclosure statement with the Secretary of State. It requires the Secretary of State to adopt 
major substantive rules for the content of the tax disclosure statement, an alternative tax 
disclosure statement, procedures and fees to provide public access to the tax disclosure 
statements, oversight and penalties for failing to file or filing an inaccurate tax disclosure 
statement. It permits a corporation that files a tax disclosure statement to submit 
supplemental information that could facilitate proper interpretation of the information 
included in the tax disclosure statement. It requires a corporation that files an amended 
tax return or with a tax liability that is changed as the result of an uncontested audit 
adjustment or final determination by the Department of Administrative and Financial 
Services, Bureau of Revenue Services, the Maine Board of Tax Appeals or Superior 
Court to file a revised tax disclosure statement within 60 calendar days of filing the 
amended return or the final determination. It requires the Secretary of State to make the 
tax disclosure statement available to the public on an ongoing basis in the form of a 
searchable database accessible through the Internet.  It requires the chief operating officer 
of a corporation to attest in writing to the accuracy of the tax disclosure statement. It 
requires the Bureau of Revenue Services to act as the agent of the Secretary of State to 
audit a corporation's tax disclosure. It requires the Secretary of State to publish the name 
of and penalty imposed upon a corporation subject to a penalty for failing to file or filing 
an inaccurate tax disclosure statement. It permits the disclosure by employees of the 
Bureau of Revenue Services to designated representatives of the Secretary of State of 
information required by the Secretary of State for the administration of the tax disclosure 
statement.