An Act To Correct Minor Technical Errors and Inconsistencies in the Unified Budget Bill
Maine Legislature, Session 126, LD 1572
Committee: Appropriations and Financial Affairs pursuant to Joint Order, H
Amends: 36 MRSA §1811, 36 MRSA §2552, 36 MRSA §5122, 36 MRSA §5200-A, 36 MRSA §5219-I, 36 MRSA §5219-J, 36 MRSA §5403

Legislative Document 
No. 1572 
H.P. 1141 
House of Representatives, June 26, 2013 
An Act To Correct Minor Technical Errors and Inconsistencies in 
the Unified Budget Bill 
(EMERGENCY) 
Reported by Representative ROTUNDO of Lewiston for the Joint Standing Committee on 
Appropriations and Financial Affairs pursuant to Joint Order, H.P. 1140. 
MILLICENT M. MacFARLAND 
Clerk 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, this legislation corrects certain errors and inconsistencies that occurred in 
the unified budget bill; and 
Whereas, the unified budget bill is emergency legislation, which takes effect June 
26, 2013; and 
Whereas, these errors and inconsistencies must be corrected as soon as possible in 
order to ensure the proper operation of State Government; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1811, first ¶, as amended by PL 2013, c. 368, Pt. M, §2 and 
Pt. N, §2, is repealed and the following enacted in its place: 
A tax is imposed on the value of all tangible personal property, products transferred 
electronically and taxable services sold at retail in this State.  The rate of tax is 7% on the 
value of liquor sold in licensed establishments as defined in Title 28-A, section 2, 
subsection 15, in accordance with Title 28-A, chapter 43; 7% on the value of rental of 
living quarters in any hotel, rooming house or tourist or trailer camp; 10% on the value of 
rental for a period of less than one year of an automobile, of a pickup truck or van with a 
gross vehicle weight of less than 26,000 pounds rented from a person primarily engaged 
in the business of renting automobiles or of a loaner vehicle that is provided other than to 
a motor vehicle dealer's service customers pursuant to a manufacturer’s or dealer’s 
warranty; 7% on the value of prepared food; and 5% on the value of all other tangible 
personal property and taxable services and products transferred electronically.  
Notwithstanding the other provisions of this section, from October 1, 2013 to June 30, 
2015, the rate of tax is 8% on the value of rental of living quarters in any hotel, rooming 
house or tourist or trailer camp; 8% on the value of prepared food; 8% on the value of 
liquor sold in licensed establishments as defined in Title 28-A, section 2, subsection 15, 
in accordance with Title 28-A, chapter 43; and 5.5% on the value of all other tangible 
personal property and taxable services.  Value is measured by the sale price, except as 
otherwise provided. The value of rental for a period of less than one year of an 
automobile or of a pickup truck or van with a gross vehicle weight of less than 26,000 
pounds rented from a person primarily engaged in the business of renting automobiles is 
the total rental charged to the lessee and includes, but is not limited to, maintenance and 
service contracts, drop-off or pick-up fees, airport surcharges, mileage fees and any 
separately itemized charges on the rental agreement to recover the owner’s estimated 
costs of the charges imposed by government authority for title fees, inspection fees, local 
excise tax and agent fees on all vehicles in its rental fleet registered in the State.  All fees 
must be disclosed when an estimated quote is provided to the lessee. 
Sec. 2.  36 MRSA §2552, sub-§1, as amended by PL 2011, c. 542, Pt. A, §139, is 
further amended to read: 
1.  Rate.  A tax at the rate of 5%, except that, from October 1, 2013 to June 30, 2015, 
a tax at the rate of 5.5%, is imposed on the value of the following services sold in this 
State: 
A.  Extended cable and satellite television services; 
B.  Fabrication services; 
C.  Rental of video media and video equipment; 
D.  Rental of furniture, audio media and audio equipment pursuant to a rental-
purchase agreement as defined in Title 9-A, section 11-105; 
E.  Telecommunications services; 
F.  The installation, maintenance or repair of telecommunications equipment; 
G.  Private nonmedical institution services; 
H.  Community support services for persons with mental health diagnoses; 
I.  Community support services for persons with intellectual disabilities or autism;  
J.  Home support services; and 
L.  Ancillary services. 
Sec. 3.  36 MRSA §5122, sub-§1, ¶HH, as enacted by PL 2013, c. 368, Pt. TT, 
§4, is amended to read: 
HH.  For taxable years beginning in 2013: 
(1)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to property placed in service in the State during the taxable year for 
which a credit is claimed under section 5219-II 5219-JJ for that taxable year; and 
(2)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to property for which a credit is not claimed under section 5219-II 
5219-JJ. 
Sec. 4.  36 MRSA §5200-A, sub-§1, ¶AA, as enacted by PL 2013, c. 368, Pt. TT, 
§14, is amended to read: 
AA.  For taxable years beginning in 2013: 
(1)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to property placed in service in the State during the taxable year for 
which a credit is claimed under section 5219-II 5219-JJ for that taxable year; and 
(2)  An amount equal to the net increase in depreciation attributable to the 
depreciation deduction claimed by the taxpayer under the Code, Section 168(k) 
with respect to property for which a credit is not claimed under section 5219-II 
5219-JJ. 
Sec. 5.  36 MRSA §5219-II, as enacted by PL 2013, c. 368, Pt. TT, §18, is 
reallocated to 36 MRSA §5219-JJ. 
Sec. 6.  36 MRSA §5403, as amended by PL 2013, c. 368, Pt. Q, §11 and affected 
by §12 and amended by Pt. TT, §19, is repealed and the following enacted in its place: 
§5403.  Annual adjustments for inflation 
The income tax rate brackets and itemized deduction limitation amount must be 
adjusted for the cost of living as provided in this section. 
1.  Income tax rate brackets.  Beginning in 2015, and each subsequent calendar year 
thereafter, on or about September 15th, the State Tax Assessor shall multiply the cost-of-
living adjustment for taxable years beginning in the succeeding calendar year by the 
dollar amounts of the tax rate tables specified in section 5111, subsections 1-D, 2-D and 
3-D. 
2.  Itemized deduction limitation amount.  Beginning in 2013, and each subsequent 
calendar year thereafter, on or about September 15th, the State Tax Assessor shall 
multiply the cost-of-living adjustment for taxable years beginning in the succeeding 
calendar year by the dollar amount of the itemized deduction limitation amount in section 
5125, subsection 4. 
3.  Rounding.  If the dollar amounts of each rate bracket or the itemized deduction 
limitation amount, adjusted by application of the cost-of-living adjustment, is not a 
multiple of $50, any increase must be rounded to the next lowest multiple of $50. If the 
cost-of-living adjustment for any taxable year would be less than the cost-of-living 
adjustment for the preceding calendar year, the cost-of-living adjustment is the same as 
for the preceding calendar year. The assessor shall incorporate such changes into the 
income tax forms, instructions and withholding tables for the taxable year. 
Sec. 7.  PL 2013, c. 368, Pt. A, §34, 8th occurrence of Medical Care - 
Payments to Providers 0147 is amended by amending the initiative to read: 
Initiative: Reduces funding by limiting reimbursement for behavioral health services, as 
defined in the MaineCare Benefits Manual, Section 65, provided to dually eligible 
members to licensed clinical social workers or other Medicare-approved providers. 
Sec. 8.  Appropriations and allocations.  The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Mandate BETE - Reimburse Municipalities Z065 
Initiative: Deappropriates funding for an initiative that was not intended to be included in 
Public Law 2013, c. 368.  The related statutory changes were not included in the final 
enacted version of the Act. 
Sec. 9.  Retroactivity.  This Act applies retroactively to June 26, 2013. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill corrects minor technical errors and inconsistencies in Public Law 2013, 
chapter 368, the so-called unified budget bill, including: 
1.  Correcting a technical conflict created when 2 sections of the public law amended 
the same section of law; 
2.  Clarifying that the temporary increase in the sales tax to 5.5% applies to the 
services currently subject to the 5% sales tax; 
3.  Correcting a numbering error created when 2 different provisions of law were 
enacted with the same title and section number by reallocating the provision establishing 
the Maine capital investment credit for 2013; 
4.  Resolving a conflict created when 2 sections amended the provision of law that 
provides for an annual adjustment for inflation of the income tax rate brackets in different 
ways, one by delaying the annual adjustment of the income tax rate brackets and the other 
by providing for an annual adjustment of the itemized deduction limitation amount.  Both 
provisions are maintained; 
5.  Correcting an initiative to reflect that the MaineCare reimbursement is limited to 
behavioral health services; and 
6.  Deappropriating funds to offset an appropriation in an initiative in the committee 
amendment that should have been eliminated when statutory changes were made in the 
enacted version of the unified budget bill. 
GENERAL FUND 
2013-14
2014-15
All Other 
($726)
($2,320)
GENERAL FUND TOTAL 
($726)
($2,320)
Approved: 06/26/13
LD 1572     
LR 2192(01)
FY 2013-14
FY 2014-15
Projections 
FY 2015-16
Projections 
FY 2016-17
Net Cost (Savings)
General Fund
($726)
($2,320)
($2,320)
($2,320)
Appropriations/Allocations
General Fund
($726)
($2,320)
($2,320)
($2,320)
Revenue
Other Special Revenue Funds
$2,592,675
$3,456,900
$0
$0
Fiscal Detail and Notes
Fiscal Note
This bill makes technical corrections to several provisions in the Biennial Budget Bill, LD 1509 as enacted as Public 
Law 2013, chapter 368.  The fiscal impacts of this bill include deappropriations to offset a small appropriation that 
was included in the enacted budget in error as the related statutory changes were removed from the enacted bill.  This 
fiscal note also recognizes the Other Special Revenue Funds impact of the increase in the 5% tax rate to 5.5% on 
taxable sales and services.  Only the General Fund revenue impact was included in the fiscal note for LD 1509 as 
enacted.
An Act To Correct Minor Technical Errors and Inconsistencies in the Unified Budget Bill
Fiscal Note for Original Bill
Committee: Appropriations and Financial Affairs
Fiscal Note Required: Yes
LR2192(01) - Fiscal Note - Page 1 of 1