An Act To Provide Tax Revenue To Offset Transfers to the Maine Clean Election Fund
Maine Legislature, Session 127, LD 1634
Amends: 36 MRSA §5200

Legislative Document 
No. 1634 
H.P. 1110 
House of Representatives, March 3, 2016 
An Act To Provide Tax Revenue To Offset Transfers to the Maine 
Clean Election Fund 
Reported by six members in Report A from the Joint Standing Committee on Taxation 
pursuant to the Maine Revised Statutes, Title 36, section 199-E. 
ROBERT B. HUNT 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
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affected by §2, is repealed and the following enacted in its place: 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. 
The State Tax Assessor shall review annually the list of jurisdictions in paragraph B and 
report to the joint standing committee of the Legislature having jurisdiction over taxation 
matters whether any jurisdictions should be added to or deleted from the list based on 
whether the jurisdiction taxes no or only nominal income, the jurisdiction lacks effective 
exchange of information with other taxing authorities, the jurisdiction lacks governmental 
transparency and the jurisdiction protects business with no substantial activity. 
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, 
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, 
2016. 
Sec. 4.  Appropriations and allocations.  The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides funding for 2 Staff Attorney positions, one Tax Analyst position and 
computer programming costs. 
SUMMARY 
This bill is reported out by the Joint Standing Committee on Taxation pursuant to the 
Maine Revised Statutes, Title 36, section 199-E, as enacted by Initiated Bill 2015, chapter 
1.  This bill offsets the annual transfer of $3,000,000 in General Fund revenue to the 
Maine Clean Election Fund by requiring 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 double deduction of income.  The 
State Tax Assessor is also required to submit an annual report to the joint standing 
committee of the Legislature having jurisdiction over taxation matters regarding whether 
jurisdictions should be added to or deleted from the list of tax havens based on specified 
criteria. 
FISCAL NOTE REQUIRED 
(See attached) 
GENERAL FUND 
2015-16
2016-17
POSITIONS - LEGISLATIVE COUNT 
0.000
3.000
Personal Services 
$0
$274,837
All Other 
$0
$120,006
GENERAL FUND TOTAL 
$0
$394,843
Approved: 02/26/16
LD 1634     
LR 2656(01)
FY 2015-16
FY 2016-17
Projections 
FY 2017-18
Projections 
FY 2018-19
Net Cost (Savings)
General Fund
$0
($4,603,157)
($4,941,820)
($5,178,163)
Appropriations/Allocations
General Fund
$0
$394,843
$301,180
$309,837
Revenue
General Fund
$0
$4,998,000
$5,243,000
$5,488,000
Other Special Revenue Funds
$0
$102,000
$107,000
$112,000
Fiscal Detail and Notes
Preliminary Fiscal Impact Statement
The bill 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 $4,998,000 and $102,000, respectively, in fiscal year 2016-17.  
The bill includes a General Fund appropriation to the Department of Administrative and Financial Services of 
$394,843 in fiscal year 2016-17 for two Staff Attorney positions, one Tax Analyst position and computer 
programming charges.
An Act To Provide Tax Revenue To Offset Transfers to the Maine Clean Election Fund
Fiscal Note for Original Bill
Committee: Taxation
Fiscal Note Required: Yes
LR2656(01) - Fiscal Note - Page 1 of 1