An Act To Amend the Tax Laws
Maine Legislature, Session 127, LD 1411
Committee: Taxation
Sponsors: McCORMICK
Amends: 10 MRSA §1100-Z, 12 MRSA §13003, 36 MRSA §191, 36 MRSA §193, 36 MRSA §841, 36 MRSA §1752, 36 MRSA §1760, 36 MRSA §1764, 36 MRSA §1811, 36 MRSA §1812, 36 MRSA §2012, 36 MRSA §2019, 36 MRSA §2521-A, 36 MRSA §2551, 36 MRSA §2552, 36 MRSA §2556, 36 MRSA §2559, 36 MRSA §4362-A, 36 MRSA §4402, 36 MRSA §5102, 36 MRSA §5122, 36 MRSA §5216-B, 25 MRSA §1542-A, 36 MRSA §194-B, 36 MRSA §194-C

Legislative Document 
No. 1411 
S.P. 526 
In Senate, May 13, 2015 
An Act To Amend the Tax Laws 
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204. 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator McCORMICK of Kennebec. 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-1.  10 MRSA §1100-Z, sub-§3, ¶G, as amended by PL 2011, c. 548, §4, 
is further amended to read: 
G.  Upon receipt of notice that a qualified community development entity has issued 
its qualified equity investments or long-term debt securities, the authority shall certify 
the entity's qualified equity investments or long-term debt securities as qualified 
equity investments and eligible for tax credits under Title 36, section 5219-HH.  The 
authority shall provide written notice, sent by certified mail or any other means 
considered feasible by the authority, of the certification to the qualified community 
development entity, the Department of Administrative and Financial Services, Bureau 
of Revenue Services and the Commissioner of Administrative and Financial Services. 
The notice must include the names of persons eligible to claim the tax credits and 
their respective tax credit amounts. If the names of the persons that are eligible to 
claim the tax credits change due to a transfer of a qualified equity investment or a 
change in an allocation pursuant to this subchapter, the qualified community 
development entity shall notify the authority and the Department of Administrative 
and Financial Services, Bureau of Revenue Services of that transfer or change. 
Sec. A-2.  10 MRSA §1100-Z, sub-§5, as amended by PL 2011, c. 548, §6, is 
further amended to read: 
5.  Reporting and disclosure of information.  The authority shall require annual 
reports of a qualified community development entity granted tax credit allocation 
authority pursuant to subsection 3.  Reports may must be shared with the Department of 
Administrative and Financial Services, Bureau of Revenue Services and the 
Commissioner of Administrative and Financial Services.  Notwithstanding section 975-A, 
the authority may disclose any information to the Department of Administrative and 
Financial Services, Bureau of Revenue Services and the Commissioner of Administrative 
and Financial Services that it considers necessary for the administration of the program 
pursuant to this section, Title 36, section 2533 or Title 36, section 5219-HH. 
Sec. A-3.  12 MRSA §13003, sub-§2, ¶A, as amended by PL 2013, c. 86, §1 and 
affected by §5, is repealed. 
Sec. A-4.  36 MRSA §191, sub-§2, ¶HH, as amended by PL 2007, c. 328, §2, is 
repealed. 
Sec. A-5.  36 MRSA §191, sub-§2, ¶¶XX and YY, as enacted by PL 2013, c. 
331, Pt. B, §5, are amended to read: 
XX.  The disclosure of information by the assessor to the board, except that such 
disclosure is limited to information that is pertinent to an appeal or other action or 
proceeding before the board; and 
YY.  The inspection and disclosure of information by the board to the extent 
necessary to conduct appeals procedures pursuant to this Title and issue a decision on 
an appeal to the parties.  The board may make available to the public redacted 
decisions that do not disclose the identity of a taxpayer or any information made 
confidential by state or federal statute.; and 
Sec. A-6.  36 MRSA §191, sub-§2, ¶ZZ is enacted to read: 
ZZ.  The disclosure by the State Tax Assessor to a qualified Pine Tree Development 
Zone business that has filed a claim for reimbursement under section 2016 of 
information related to any insufficiency of the claim, including records of a 
contractor or subcontractor that assigned the claim for reimbursement to the qualified 
Pine Tree Development Zone business and records of the vendors of the contractor or 
subcontractor. 
Sec. A-7.  36 MRSA §193, sub-§2, ¶C is enacted to read: 
C.  Unless otherwise provided by a rule adopted pursuant to this subsection, in the 
case of an employer that submits returns pursuant to Title 26, chapter 13, subchapter 
or 7, the assessor may require that the returns be filed by electronic data 
submission. 
Sec. A-8.  36 MRSA §841, sub-§2, as repealed and replaced by PL 2013, c. 424, 
Pt. A, §24, is amended to read: 
2.  Hardship or poverty.  The municipal officers, or the State Tax Assessor for the 
unorganized territory, within 3 years from commitment, may, on their own knowledge or 
on written application, make such abatements as they believe reasonable on the real and 
personal taxes on the primary residence of any person who, by reason of hardship or 
poverty, is in their judgment unable to contribute to the public charges.  The municipal 
officers, or the State Tax Assessor for the unorganized territory, may extend the 3-year 
period within which they may make abatements under this subsection. 
Municipal officers or the State Tax Assessor for the unorganized territory shall: 
A.  Provide that any person indicating an inability to pay all or part of taxes that have 
been assessed because of hardship or poverty be informed of the right to make 
application under this subsection; 
B.  Assist individuals in making application for abatement; 
C.  Make available application forms for requesting an abatement based on hardship 
or poverty and provide that those forms contain notice that a written decision will be 
made within 30 days of the date of application; 
D.  Provide that persons are given the opportunity to apply for an abatement during 
normal business hours; 
E.  Provide that all applications, information submitted in support of the application, 
files and communications relating to an application for abatement and the 
determination on the application for abatement are confidential.  Hearings and 
proceedings held pursuant to this subsection must be in executive session; 
F.  Provide to any person applying for abatement under this subsection, notice in 
writing of their decision within 30 days of application; and 
G.  Provide that any decision made under this subsection include the specific reason 
or reasons for the decision and inform the applicant of the right to appeal and the 
procedure for requesting an appeal. 
For the purpose of this subsection, the municipal officers may set off or otherwise treat as 
available benefits provided to an applicant under chapter 907 when determining if the 
applicant is able to contribute to the public charges. 
Sec. A-9.  36 MRSA §841, sub-§4, as amended by PL 2005, c. 218, §10, is 
further amended to read: 
4.  Veteran's widow or widower or minor child.  Notwithstanding failure to 
comply with section 706 or section 1181, the assessors, on written application within one 
year from the date of commitment, may make such abatement as they think proper in the 
case of the unremarried widow or widower or the minor child of a veteran, if the widow, 
widower or child would be entitled to an exemption under section 653, subsection 1, 
paragraph D, except for her or his the failure of the widow, widower or child to make 
application and file proof within the time set by section 653, subsection 1, paragraph G, 
provided that if the veteran died during the 12-month period preceding the April 1st for 
which the tax was committed. 
Sec. A-10.  36 MRSA §1752, sub-§2-D, as enacted by PL 2007, c. 658, §1, is 
repealed. 
Sec. A-11.  36 MRSA §1752, sub-§2-E, as enacted by PL 2007, c. 658, §2, is 
repealed. 
Sec. A-12.  36 MRSA §1752, sub-§6-A, as amended by PL 2007, c. 627, §41, is 
repealed and the following enacted in its place: 
6-A.  Manufacturing facility.  "Manufacturing facility" means a site at which are 
located machinery and equipment used directly and primarily in either: 
A.  The production of tangible personal property intended to be sold or leased 
ultimately for final use or consumption; or 
B.  The production of tangible personal property pursuant to a contract with the 
Federal Government or any agency of the Federal Government. 
"Manufacturing facility" includes the machinery and equipment and all machinery, 
equipment, structures and facilities located at the site and used in support of production or 
associated with the production.  "Manufacturing facility" does not include a site at which 
a retailer is primarily engaged in making retail sales of tangible personal property that is 
not produced by the retailer. 
Sec. A-13.  36 MRSA §1752, sub-§14, ¶B, as amended by PL 2011, c. 211, §22, 
is further amended to read: 
B.  "Sale price" does not include: 
(1)  Discounts allowed and taken on sales; 
(2)  Allowances in cash or by credit made upon the return of merchandise 
pursuant to warranty; 
(3)  The price of property returned by customers, when the full price is refunded 
either in cash or by credit; 
(4)  The price received for labor or services used in installing or applying or 
repairing the property sold, if separately charged or stated; 
(5)  Any amount charged or collected, in lieu of a gratuity or tip, as a specifically 
stated service charge, when that amount is to be disbursed by a hotel, restaurant 
or other eating establishment to its employees as wages; 
(6)  The amount of any tax imposed by the United States on or with respect to 
retail sales, whether imposed upon the retailer or the consumer, except any 
manufacturers', importers', alcohol or tobacco excise tax; 
(7)  The cost of transportation from the retailer's place of business or other point 
from which shipment is made directly to the purchaser, provided that those 
charges are separately stated and the transportation occurs by means of common 
carrier, contract carrier or the United States mail; 
(8)  The fee imposed by Title 10, section 1169, subsection 11; 
(9)  The fee imposed by section 4832, subsection 1; 
(10)  The lead-acid battery deposit imposed by Title 38, section 1604, subsection 
2-B; 
(11)  Any amount charged or collected by a person engaged in the rental of living 
quarters as a forfeited room deposit or cancellation fee if the prospective 
occupant of the living quarters cancels the reservation on or before the scheduled 
date of arrival;  
(12) The premium imposed on motor vehicle oil by Title 10, section 1020, 
subsection 6-A; or 
(13)  Any amount charged for the disposal of used tires.; or 
(14)  Any charge, deposit, fee or premium imposed by a law of this State. 
Sec. A-14.  36 MRSA §1760, sub-§9, as amended by PL 2011, c. 670, §1, is 
further amended to read: 
9.  Coal, oil and wood.  Coal, oil, wood and all other fuels, except gas and 
electricity, when bought for cooking and heating in buildings designed and used for both 
human habitation and sleeping.  Kerosene The sale of kerosene or home heating oil that is 
prepackaged or dispensed from a tank for retail sale in containers a container with a 
capacity of 5 gallons or less, or the sale of any amount of wood pellets or any 100% 
compressed wood product intended for use in a wood stove or fireplace, or of any amount 
of firewood, is presumed to meet the requirements of this subsection when the product is 
received by the purchaser at the retail location.  Until September 30, 2013, a purchase of 
1,000 pounds or less of wood pellets or of any 100% compressed wood product intended 
for use in a wood stove or fireplace is presumed to meet the requirements of this 
subsection.  Beginning October 1, 2013, a purchase of any amount of wood pellets is 
presumed to meet the requirements of this subsection.  A purchase of less than one cord 
of wood is presumed to meet the requirements of this subsection.  For purposes of this 
subsection, "cord" has the same meaning as in Title 10, section 2302, subsection 1. 
Sec. A-15.  36 MRSA §1760, sub-§18-A, as amended by PL 1975, c. 293, §4 and 
PL 2003, c. 689, Pt. B, §6, is further amended to read: 
18-A.  Certain residential child care facilities.  Sales to incorporated private 
nonprofit residential child caring institutions which care facilities that are licensed by the 
Department of Health and Human Services as child caring institutions care facilities. 
Sec. A-16.  36 MRSA §1760, sub-§23-C, ¶A, as amended by PL 2013, c. 86, §2 
and affected by §5, is repealed and the following enacted in its place: 
A.  Motor vehicles other than those that are being leased for a period of less than one 
year; 
Sec. A-17.  36 MRSA §1760, sub-§23-C, ¶E, as enacted by PL 1999, c. 759, §2 
and affected by §5, is amended to read: 
E.  Camper trailers, including truck campers, other than those that are being leased 
for a period of less than one year. 
Sec. A-18.  36 MRSA §1760, sub-§25, ¶C, as enacted by PL 2009, c. 620, §1 
and affected by §2, is amended to read: 
C.  If, for a purpose other than temporary storage, a watercraft is present in the this 
State for more than 30 days during the 12-month period following its date of 
purchase, the exemption is applies only to 60% of the sale price of the watercraft or 
materials for the construction, repair, alteration, refitting, reconstruction, overhaul or 
restoration of the watercraft, as specified in paragraph A. 
Sec. A-19.  36 MRSA §1760, sub-§43, as amended by PL 1983, c. 828, §6, is 
further amended to read: 
43.  Child care facilities.  Sales to licensed, incorporated nonprofit nursery schools 
and day-care centers child care facilities. 
Sec. A-20.  36 MRSA §1760, sub-§44, as reallocated by PL 1983, c. 562, is 
amended to read: 
44.  Certain church-affiliated residential homes. Sales to any church affiliated an 
incorporated, church-affiliated nonprofit organization which that operates, under a charter 
granted by the Legislature, a residential home for adults. 
Sec. A-21.  36 MRSA §1760, sub-§54, as amended by PL 2001, c. 396, §23 and 
PL 2003, c. 689, Pt. B, §6, is further amended to read: 
54.  SNAP and WIC purchases.  Sales of items purchased with federal food stamps 
instruments distributed by the Department of Health and Human Services pursuant to the 
Supplemental Nutrition Assistance Program or the Women, Infants and Children, WIC, 
Special Supplemental Food Program food instruments distributed by the Department of 
Health and Human Services. 
Sec. A-22.  36 MRSA §1760, sub-§73, as enacted by PL 1989, c. 871, §15, is 
amended to read: 
73.  Seedlings for commercial forestry use.  Sales of tree seedlings for use in 
commercial forestry.  This subsection takes effect September 1, 1990. 
Sec. A-23.  36 MRSA §1764, as amended by PL 2013, c. 331, Pt. C, §9, is further 
amended to read: 
§1764.  Tax against certain casual sales 
The tax imposed by this Part must be levied upon all casual rentals of living quarters 
in a hotel, rooming house, tourist camp or trailer camp and upon all casual sales involving 
the sale of trailers, truck campers, motor vehicles, special mobile equipment, watercraft 
or aircraft unless the property is sold for resale at retail sale or to a corporation, 
partnership, trust, limited liability company or limited liability partnership when the seller 
is the owner of 50% or more of the common stock of the corporation or of the ownership 
interests in the partnership, trust, limited liability company or limited liability partnership.  
This section does not apply to the rental of living quarters rented for a total of fewer than 
days in the calendar year, except that a person who owns and offers for rental more 
than one property in the State during the calendar year is liable for collecting sales tax 
with respect to the rental of each unit regardless of the number of days for which it is 
rented.  For purposes of this section, "special mobile equipment" does not include farm 
tractors and lumber harvesting vehicles or loaders. 
Sec. A-24.  36 MRSA §1811, 3rd ¶, as repealed and replaced by PL 2003, c. 510, 
Pt. C, §12 and affected by §13, is amended to read: 
Rental The value of the rental or lease of an automobile for one year or more must be 
taxed at the time of the lease or rental transaction at 5% of is the following:  the total 
monthly lease payment multiplied by the number of payments in the lease or rental, the 
amount of equity involved in any trade-in and the value of any cash down payment.  
Collection and remittance of the tax is the responsibility of the person that negotiates the 
lease transaction with the lessee. 
Sec. A-25.  36 MRSA §1812, sub-§1, as amended by PL 2013, c. 368, Pt. M, §3, 
is further amended to read: 
1.  Computation.  Every retailer shall add the sales tax imposed by chapters 211 to 
225, or the average equivalent of that tax, to his the sale price, except as otherwise 
provided, and when added the tax shall constitute constitutes a part of the price, shall be 
is a debt of the purchaser to the retailer until paid and shall be is recoverable at law in the 
same manner as the purchase price. When the sale price shall involve involves a fraction 
of a dollar, the tax retailer shall be added add the tax to the sale price upon the following 
schedules:  
A-1.  If the tax rate is 5%: 
A-2.  If the tax rate is 5 1/2%: 
B.  If the tax rate is 7%:  
D.  If the tax rate is 10%: 
E.  If the tax rate is 8%: 
Amount of Sale Price 
Amount of Tax 
$0.01 to $0.10, inclusive 
0¢ 
.11 to .20, inclusive  
1¢ 
.21 to .40, inclusive  
2¢ 
.41 to .60, inclusive  
3¢ 
.61 to .80, inclusive 
4¢ 
.81 to 1.00, inclusive 
5¢ 
Amount of Sale Price  
Amount of Tax 
$0.01 to $0.09, inclusive 
0¢ 
.10 to .18, inclusive  
1¢ 
.19 to .36, inclusive 
2¢ 
.37 to .54, inclusive 
3¢ 
.55 to .72, inclusive  
4¢ 
.73 to .90, inclusive 
5¢ 
.91 to 1.09, inclusive 
6¢ 
1.10 to 1.27, inclusive  
7¢ 
1.28 to 1.45, inclusive 
8¢ 
1.46 to 1.63, inclusive 
9¢ 
1.64 to 1.81, inclusive 
10¢ 
1.82 to 2.00, inclusive 
11¢ 
Amount of Sale Price  
Amount of Tax 
$0.01 to $0.07, inclusive  
0¢ 
.08 to .21, inclusive  
1¢ 
.22 to .35, inclusive 
2¢ 
.36 to .49, inclusive  
3¢ 
.50 to .64, inclusive  
4¢ 
.65 to .78, inclusive 
5¢ 
.79 to .92, inclusive 
6¢ 
.93 to 1.00, inclusive 
7¢ 
Amount of Sale Price  
Amount of Tax 
$0.01 to $0.10, inclusive  
0¢ 
.11 to .20, inclusive  
2¢ 
.21 to .40, inclusive  
4¢ 
.41 to .60, inclusive  
6¢ 
.61 to .80, inclusive  
8¢ 
.81 to 1.00, inclusive  
10¢ 
When the sale price exceeds $1, the tax to be added to the price shall be is the scheduled 
amount for each whole dollar plus the scheduled amount for each fractional part of $1. 
Sec. A-26.  36 MRSA §2012, as amended by PL 1967, c. 88, is repealed and the 
following enacted in its place: 
§2012.  Refund of sales tax on goods removed from State 
A business that operates both within and without this State may request a refund of 
Maine sales tax paid at the time of purchase on tangible personal property that is placed 
in inventory in this State and subsequently withdrawn from inventory for: 
1.  Use outside the State.  Use at a fixed location of the business in another taxing 
jurisdiction; 
2.  Fabrication, attachment or incorporation outside the State.  Fabrication, 
attachment or incorporation into other tangible personal property for use at a fixed 
location of the business in another taxing jurisdiction; or 
3.  Incorporation into real property.  Incorporation into real property located in 
another taxing jurisdiction. 
In order to be eligible for the refund, the tangible personal property on which sales 
tax was paid may not be used by the business prior to its withdrawal from inventory for 
any purpose other than storage or the fabrication, attachment or incorporation described 
in subsection 2.  The business must also maintain inventory records by which the 
acquisition and disposition of such tangible personal property may be traced.  A refund 
may not be made when the taxing jurisdiction to which the tangible personal property is 
removed levies a sales or use tax. Refunds under this section must be requested in 
accordance with section 2011. 
Sec. A-27.  36 MRSA §2019, as enacted by PL 2007, c. 658, §3, is repealed. 
Sec. A-28.  36 MRSA §2521-A, first ¶, as repealed and replaced by PL 2007, c. 
627, §54 and affected by §96, is amended to read: 
Every insurance company, association, producer or attorney-in-fact of a reciprocal 
insurer subject to the tax imposed by this chapter shall make payment of estimated tax on 
Amount of Sale Price 
Amount of Tax 
$0.01 to $0.06, inclusive 
0¢ 
.07 to .13, inclusive 
1¢ 
.14 to .25, inclusive 
2¢ 
.26 to .38, inclusive 
3¢ 
.39 to .50, inclusive 
4¢ 
.51 to .63, inclusive 
5¢ 
.64 to .75, inclusive 
6¢ 
.76 to .88, inclusive  
7¢ 
.89 to 1.00, inclusive 
8¢ 
or before the last day of each April, the 25th day of each June and the last day of each 
October file with the State Tax Assessor, on forms prescribed by the assessor, a return for 
the quarter ending on the last day of the preceding calendar month, except for the return 
due on the 25th day of June, which is for the quarter ending June 30th. A final return 
must be filed on or before March 15th, covering the prior calendar year. The 3 quarterly 
returns may be on an estimated basis, as long as each Each April and June installment 
equals estimated tax payment must equal 35% of the total tax paid for the preceding 
calendar year or at least 35% of the total tax to be paid for the current calendar year and 
each October installment equals estimated tax payment must equal 15% of the total tax 
paid for the preceding calendar year or at least 15% of the total tax to be paid for the 
current calendar year.  A final return must be filed on or before March 15th covering the 
prior calendar year. 
Sec. A-29.  36 MRSA §2551, sub-§10, as amended by PL 2013, c. 331, Pt. C, 
§12, is further amended to read: 
10.  Private nonmedical institution or personal care home.  "Private nonmedical 
institution or personal home care home" means a person licensed by the Department of 
Health and Human Services to provide private nonmedical institution or personal home 
care home services to 4 or more MaineCare-eligible and other residents in single or 
multiple facilities under a written agreement with the Department of Health and Human 
Services.  "Private nonmedical institution or personal home care home" does not include 
a health insurance organization, hospital, nursing home or community health care center. 
Sec. A-30.  36 MRSA §2551, sub-§11, as amended by PL 2013, c. 331, Pt. C, 
§13, is further amended to read: 
11.  Private nonmedical institution or personal care home services.  "Private 
nonmedical institution or personal home care home services" means services, including 
food, shelter and treatment, that are provided by a private nonmedical institution or 
personal home care home. 
Sec. A-31.  36 MRSA §2552, sub-§1, ¶G, as amended by PL 2013, c. 331, Pt. C, 
§14, is further amended to read: 
G.  Private nonmedical institution or personal home care home services; 
Sec. A-32.  36 MRSA §2556, sub-§5, as enacted by PL 2003, c. 673, Pt. V, §25 
and affected by §29, is repealed. 
Sec. A-33.  36 MRSA §2559, as amended by PL 2011, c. 542, Pt. A, §141, is 
further amended to read: 
§2559.  Application of revenues 
Revenues derived by the tax imposed by this chapter must be credited to a General 
Fund suspense account.  On or before the last day of each month, the State Controller 
shall transfer a percentage of the revenues received by the State Tax Assessor during the 
preceding month pursuant to the tax imposed by section 2552, subsection 1, paragraphs A 
to F and L to the Local Government Fund as provided by Title 30-A, section 5681, 
subsection 5.  The balance remaining in the General Fund suspense account must be 
transferred to service provider tax General Fund revenue.  On or before the 15th day of 
each month, the State Controller shall transfer all revenues received by the assessor 
during the preceding month pursuant to the tax imposed by section 2552, subsection 1, 
paragraphs G to J and M to the Medical Care Services Other Special Revenue Funds 
account, the Other Special Revenue Funds Mental Health Services - Community 
Medicaid program, the Medicaid Services - Adult Developmental Services program and 
the Office of Substance Abuse - Medicaid Seed program within the Department of Health 
and Human Services. 
Sec. A-34.  36 MRSA §4362-A, sub-§1, as enacted by PL 1997, c. 458, §3, is 
amended to read: 
1.  Generally.  A distributor doing business in this State shall obtain a license from 
the assessor.  A license must be obtained for each wholesale outlet maintained by the 
distributor.  A distributor's license must be prominently displayed on the premises 
covered by the license.  A distributor's license issued pursuant to this section is not a 
license within the meaning of that term in the Maine Administrative Procedure Act. 
Sec. A-35.  36 MRSA §4402, sub-§1, as enacted by PL 2005, c. 627, §7, is 
amended to read: 
1.  Generally.  Every distributor shall obtain a license from the State Tax Assessor 
before engaging in business.  A retailer required to be licensed as a distributor pursuant to 
this chapter must also hold a current retail tobacco license issued under Title 22, section 
1551-A.  A distributor's license issued pursuant to this section is not a license within the 
meaning of that term in the Maine Administrative Procedure Act. 
Sec. A-36.  36 MRSA §5102, sub-§8, as amended by PL 1997, c. 24, Pt. C, §9 
and affected by §16, is further amended to read: 
8.  Maine net income.  "Maine net income" means, for any taxable year for any 
corporate taxpayer, the taxable income of that taxpayer for that taxable year under the 
laws of the United States as modified by section 5200-A and apportionable to this State 
under chapter 821.  To the extent that it derives from With respect to a unitary business 
carried on by 2 or more members of an affiliated group, the "Maine net income of a 
corporation is determined by apportioning that part of the federal taxable income of the 
entire group that derives from " means the taxable income of the unitary business under 
the laws of the United States as modified by section 5200-A and apportionable to this 
State under chapter 821.  If a taxable corporation is an S corporation, "Maine net income" 
means the amount taxable at the federal level pursuant to the Code, Sections 1374 and 
1375. 
Sec. A-37.  36 MRSA §5122, sub-§2, ¶X, as amended by PL 2013, c. 546, §14, 
is further amended to read: 
X.   The taxpayer's pro rata share of an amount that was previously added back to 
federal taxable income pursuant to section 5200-A, subsection 1, paragraph N; 
section 5200-A, subsection 1, paragraph T; section 5200-A, subsection 1, paragraph 
Y, subparagraph (2); or section 5200-A, subsection 1, paragraph AA, subparagraph 
(2); or section 5200-A, subsection 1, paragraph BB by a corporation of which the 
taxpayer is a shareholder and by which, absent an S corporation election, the 
corporation could have reduced its federal taxable income for the taxable year 
pursuant to section 5200-A, subsection 2, paragraph M, R, V or, Y or Z; 
Sec. A-38.  36 MRSA §5122, sub-§2, ¶BB, as amended by PL 2011, c. 240, §31, 
is further amended to read: 
BB.  The amount of pension benefits to the extent included in federal adjusted gross 
income under a military retirement plan as defined in paragraph M or M-1 that 
exceed the amount of military retirement plan pension benefits deducted under 
paragraph M or M-1 and that are received by a person who practices as a licensed 
dentist in this State for an average of at least 20 hours per week during the tax year 
and who accepts patients who receive benefits under the MaineCare program 
administered under Title 22, chapter 855;  
Sec. A-39.  36 MRSA §5216-B, sub-§2, as amended by PL 2013, c. 438, §6, is 
further amended to read: 
2.  Credit.  An investor is entitled to a credit against the tax otherwise due under this 
Part equal to the amount of the tax credit certificate issued by the Finance Authority of 
Maine in accordance with Title 10, section 1100-T and as limited by this section.  Except 
with respect to tax credit certificates issued under Title 10, section 1100-T, subsection 
2-C, in the case of partnerships, limited liability companies, S corporations, nontaxable 
trusts and any other entities that are treated as flow-through entities for tax purposes 
under the Code, the individual partners, members, stockholders, beneficiaries or equity 
owners of such entities must be treated as the investors under this section and are allowed 
a credit against the tax otherwise due from them under this Part in proportion to their 
respective interests in those partnerships, limited liability companies, S corporations, 
trusts or other flow-through entities.  Except as limited or authorized by subsection 3 or 4, 
25% of the credit must be taken in the taxable year in which the investment is made and 
25% per year must be taken in each of the next 3 taxable years.  With respect to tax credit 
certificates issued under Title 10, section 1100-T, subsection 2-C, the credits are fully 
refundable and the investor may shall file a return requesting a refund for an investment 
for which it has received a tax credit certificate on or after January 1st of in the calendar 
year after following the calendar year in during which the investment was made. 
PART B 
Sec. B-1.  25 MRSA §1542-A, sub-§1, ¶I, as amended by PL 2013, c. 546, §2, is 
further amended to read: 
I.  Who is a prospective adoptive parent not the biological parent as required under 
Title 18-A, section 9-304, subsection (a-1); or 
Sec. B-2.  25 MRSA §1542-A, sub-§1, ¶J, as enacted by PL 2013, c. 546, §3, is 
amended to read: 
J.  Who has applied for employment with the Department of Administrative and 
Financial Services, Bureau of Revenue Services and whose fingerprints have been 
required by the State Tax Assessor pursuant to Title 36, section 194-B.; 
Sec. B-3.  25 MRSA §1542-A, sub-§1, ¶¶K and L are enacted to read: 
K.  Who has applied for employment with the Department of Administrative and 
Financial Services, Bureau of Revenue Services, Office of Tax Policy and whose 
fingerprints have been required by the Associate Commissioner for Tax Policy 
pursuant to Title 36, section 194-B; or 
L.  Who is assigned to provide services to the Department of Administrative and 
Financial Services, Bureau of Revenue Services pursuant to a contract or subcontract 
for services to the bureau and whose fingerprints have been required by the State Tax 
Assessor pursuant to Title 36, section 194-C. 
Sec. B-4.  25 MRSA §1542-A, sub-§3, ¶K is enacted to read: 
K.  The State Police shall take or cause to be taken the fingerprints of the person 
named in subsection 1, paragraph L at the request of that person and upon payment of 
the expenses by the Department of Administrative and Financial Services, Bureau of 
Revenue Services as required by Title 36, section 194-C, subsection 2. 
Sec. B-5.  25 MRSA §1542-A, sub-§4, as amended by PL 2013, c. 546, §5, is 
further amended to read: 
4.  Duty to submit to State Bureau of Identification.  It is the duty of the law 
enforcement agency taking the fingerprints as required by subsection 3, paragraphs A, B 
and G to transmit immediately to the State Bureau of Identification the criminal 
fingerprint record. Fingerprints taken pursuant to subsection 1, paragraph C, D, E or F or 
pursuant to subsection 5 may not be submitted to the State Bureau of Identification unless 
an express request is made by the commanding officer of the State Bureau of 
Identification.  Fingerprints taken pursuant to subsection 1, paragraph G must be 
transmitted immediately to the State Bureau of Identification to enable the bureau to 
conduct state and national criminal history record checks for the Department of 
Education.  The bureau may not use the fingerprints for any purpose other than that 
provided for under Title 20-A, section 6103.  The bureau shall retain the fingerprints, 
except as provided under Title 20-A, section 6103, subsection 9.  Fingerprints taken 
pursuant to subsection 1, paragraph I and subsection 3, paragraph I must be transmitted 
immediately to the State Bureau of Identification to enable the bureau to conduct state 
and national criminal history record checks for the court and the Department of Public 
Safety, Gambling Control Board, respectively.  Fingerprints taken pursuant to subsection 
1, paragraph J, K or L must be transmitted immediately to the State Bureau of 
Identification to enable the bureau to conduct state and national criminal history record 
checks for the Department of Administrative and Financial Services, Bureau of Revenue 
Services. 
Sec. B-6.  36 MRSA §194-B, first ¶, as enacted by PL 2013, c. 546, §7, is 
amended to read: 
As part of the process of evaluating an applicant for employment with the bureau on 
or after January 1, 2015, the assessor shall perform a national criminal history record 
check in accordance with this section, except the Associate Commissioner for Tax Policy 
shall perform a national criminal history record check for an applicant for employment 
with the Office of Tax Policy. 
Sec. B-7.  36 MRSA §194-B, sub-§1, as enacted by PL 2013, c. 546, §7, is 
amended to read: 
1.  Criminal history record information obtained from the Federal Bureau of 
Investigation.  The assessor shall obtain national criminal history record information 
from the Federal Bureau of Investigation for any person not then employed with the 
Bureau of Revenue Services who has applied for and may be offered employment, except 
that for a person who has applied for and may be offered employment with the bureau's 
Office of Tax Policy, the Associate Commissioner for Tax Policy shall obtain the national 
criminal history record information. 
Sec. B-8.  36 MRSA §194-B, sub-§3, as enacted by PL 2013, c. 546, §7, is 
amended to read: 
3.  Confidentiality.  All information obtained by the assessor or the Associate 
Commissioner for Tax Policy pursuant to this section is confidential and not a public 
record pursuant to Title 1, chapter 13. 
Sec. B-9.  36 MRSA §194-C is enacted to read: 
§194-C.  National criminal history record information of providers of contract 
services 
The assessor shall perform a national criminal history record check of all the bureau's 
contractors and their respective employees, subcontractors and subcontractors' employees 
who provide services to the bureau under an identified contract.  For purposes of this 
section, "identified contract" means a contract that the assessor determines involves 
access or the substantial possibility of access to the bureau's information technology 
systems or to confidential taxpayer information. 
1.  Criminal history record information obtained from the Federal Bureau of 
Investigation.  The assessor shall obtain national criminal history record information 
from the Federal Bureau of Investigation for any individual who provides or is assigned 
to provide services to the Bureau of Revenue Services pursuant to an identified contract.  
2.  Fingerprinting.  An individual who is assigned to provide services to the Bureau 
of Revenue Services pursuant to an identified contract must consent to having 
fingerprints taken for use in accordance with this section before the individual may 
provide these services.  The State Police shall take or cause to be taken the individual's 
fingerprints and shall forward the fingerprints to the Department of Public Safety, State 
Bureau of Identification so that the State Bureau of Identification can conduct the state 
and national criminal history record checks. The State Police may charge the Bureau of 
Revenue Services for the expenses incurred in processing state and national criminal 
history record checks. The full fee charged under this subsection must be deposited in a 
dedicated revenue account for the State Bureau of Identification with the purpose of 
paying costs associated with the maintenance and replacement of its criminal history 
record systems. 
3.  Confidentiality.  All information obtained by the assessor pursuant to this section 
is confidential and not a public record pursuant to Title 1, chapter 13. 
4.  Individual's access to criminal history record information.  The Bureau of 
Revenue Services shall provide an individual who provides fingerprints pursuant to 
subsection 2 with access to information obtained pursuant to this section, if requested, by 
providing a paper copy of the criminal history record information directly to the 
individual, but only after the Bureau of Revenue Services confirms that the individual is 
the subject of the record. In addition, the Bureau of Revenue Services shall publish 
guidance on requesting such information from the Federal Bureau of Investigation. 
5.  Application to other state agencies.  This section does not apply to services 
provided by another agency of this State. 
Sec. B-10.  Effective date.  That section of this Part that enacts the Maine Revised 
Statutes, Title 36, section 194-C takes effect March 1, 2016. 
SUMMARY 
Part A makes the following changes to the State's tax laws. 
1.  It requires qualified community development entities to notify the Department of 
Administrative and Financial Services, Bureau of Revenue Services when a qualified 
equity investment has been transferred.  A transfer of the qualified equity investment 
affects who is eligible to claim a tax credit under the Maine New Markets Capital 
Investment Program in the year of the transfer and in any subsequent year. 
2.  It requires the Finance Authority of Maine to provide the Bureau of Revenue 
Services with copies of the annual reports currently required of qualified community 
development entities under the Maine New Markets Capital Investment Program. 
3.  Currently the Department of Inland Fisheries and Wildlife does not collect sales or 
use tax upon the registration of a snowmobile or all-terrain vehicle by a person who is not 
a resident of Maine.  This bill repeals that provision of the law. 
4.  It repeals a provision allowing for the disclosure of benefit information under the 
Circuitbreaker Program to a representative of a municipality that has adopted a municipal 
property tax assistance program since no benefits are allowed under the Circuitbreaker 
Program for claims filed on or after August 1, 2013. 
5.  It authorizes disclosure to a Pine Tree Development Zone business of otherwise 
confidential tax information of a contractor or subcontractor that had assigned its claim to 
the business for sales or use tax reimbursement. 
6.  It clarifies that the State Tax Assessor may require unemployment compensation 
returns to be filed electronically.  The Bureau of Revenue Services processes these 
returns and associated payments for the Department of Labor. 
7.  It repeals an obsolete reference to the Circuitbreaker Program in the property tax 
abatement law. 
8.  It strikes an erroneous reference in the property tax abatement law to a provision 
that mandates that the Commissioner of Agriculture, Conservation and Forestry, and 
other state officers, must provide the State Tax Assessor with information necessary for 
the valuing of land in the unorganized territory; the mandate has no relationship to the 
abatement of Maine property taxes. 
9.  It repeals definitions of 2 terms that are no longer used in the sales tax law: "forest 
land" and "forest products." 
10.  It clarifies the definition of "manufacturing facility" in the sales tax law. 
11.  It consolidates and simplifies the list of exclusions from the definition of "sale 
price" under the sales tax law by repealing references to 4 separate fees imposed by the 
State and enacting a general exclusion for any charge or fee imposed by state law. 
12.  It simplifies the sales tax exemption for coal, oil and wood. 
13.  It updates language with respect to the sales tax exemption for residential child 
care facilities so that it is consistent with the terminology employed by the Department of 
Health and Human Services. 
14.  It clarifies that the "immediate removal" sales tax exemption with respect to 
certain vehicles purchased or leased by nonresidents does not apply to any motor vehicle 
that is being leased on a short-term basis.  Under current law, the exemption does not 
apply to an automobile that is being leased on a short-term basis. 
15.  It clarifies that the "immediate removal" sales tax exemption does not apply to a 
camper trailer or truck camper that is being leased on a short-term basis. 
16.  It clarifies existing language with respect to the partial sales tax exemption for 
certain watercraft purchased in Maine. 
17.  It updates language with respect to the sales tax exemption for child care 
facilities so that it is consistent with the terminology employed by the Department of 
Health and Human Services. 
18.  It updates the sales tax exemption for church-affiliated residential homes to 
delete obsolete language regarding charters granted by the Legislature. 
19.  It updates the sales tax exemption for food assistance purchases to include 
supplemental nutrition assistance program purchases and to delete an obsolete reference 
to food stamps. 
20.  It deletes obsolete language regarding the effective date of the sales tax 
exemption for tree seedlings used in commercial forestry. 
21.  It amends the sales tax imposed on certain casual sales to clarify that the tax does 
not apply to a sale made to a trust when the seller is the owner of 50% or more of the 
ownership interests in the trust.  This change extends to trusts the same treatment 
extended to corporations, partnerships, limited liability companies and limited liability 
partnerships under current law. 
22.  It clarifies the method of calculating the sales tax on the rental or lease of an 
automobile for one year or more. 
23.  It removes gender-specific language. 
24.  It makes a minor change to more equitably expand the sales tax refund provision 
for certain items withdrawn from inventory for use in another jurisdiction. 
25.  It repeals an obsolete sales tax refund provision that was in effect only for certain 
purchases made from April 1, 2008 to September 30, 2008. 
26.  It clarifies that required quarterly insurance premiums tax payments are 
estimated payments and not payments made based on quarterly returns.  An annual return 
is required to report the tax liability, and to reconcile estimated tax payments made, for 
the year. 
27.  It replaces the term "personal home care" in the service provider tax law with the 
term "personal care home" to mirror the term used in the rules of the Department of 
Health and Human Services. 
28.  It repeals the law governing the sourcing of mobile telecommunications services.  
Mobile telecommunications services are now sourced for state taxation purposes to the 
state of primary use, in conformity with the federal Mobile Telecommunications Sourcing 
Act, Public Law 106-252. 
29.  It amends the application of revenues provision in the service provider tax in 
order to add a reference to specify that the tax is imposed on group residential services for 
persons with brain injuries. 
30.  It clarifies that a cigarette distributor's license, like all other licenses and 
certificates issued by the State Tax Assessor, is not a license within the meaning of that 
term in the Maine Administrative Procedure Act. 
31.  It clarifies that a tobacco products distributor's license, like all other licenses and 
certificates issued by the State Tax Assessor, is not a license within the meaning of that 
term in the Maine Administrative Procedure Act. 
32.  It clarifies that the Maine net income of a unitary business is determined in the 
same way that it is for a taxable corporation that is not a member of a unitary business.  
Maine net income in both cases is calculated on the basis of federal taxable income 
apportionable to Maine modified by the addition and subtraction modifications provided 
by Title 36, section 5200-A.  The clarification is a technical change and consistent with 
long-standing administrative procedures and practice. 
33.  It updates references in the statutory provision governing the subtraction 
modification that allows an individual who is an owner of an electing S corporation to 
recapture the bonus depreciation add-backs made by the business in prior years when it 
was treated as a C corporation for federal and Maine income tax purposes.  This change 
reflects long-standing statutory and administrative practice.  
34.  It updates references to the statutory provisions governing the pension deduction 
in order to reflect recent law changes. 
35.  It clarifies that returns claiming a refundable seed capital credit must be filed the 
calendar year following the calendar year during which the investment was made. 
Part B requires the State Tax Assessor to obtain national criminal history record 
information from the Federal Bureau of Investigation for any person who provides or is 
assigned to provide services to the Department of Administrative and Financial Services, 
Bureau of Revenue Services under a contract or subcontract that the assessor determines 
involves access or a substantial possibility of access to the bureau's information 
technology systems or to confidential taxpayer information.  An individual who is 
assigned to provide services to the bureau pursuant to such a contract must consent to 
having fingerprints taken for purposes of a background check before the individual may 
provide such services. 
This Part also brings applicants for employment with the bureau's Office of Tax 
Policy within the existing background check process required under the Maine Revised 
Statutes, Title 36, section 194-B.