An Act To O Improve the Tax Appeal Process for Maine Businesses and Consumers
Maine Legislature, Session 128, LD 0583
Committee Amendment CA_A_S227 (Senate)
Amends: 36 MRSA §2011, 36 MRSA §2551, 36 MRSA §2555, 36 MRSA §2555-A

COMMITTEE AMENDMENT "A " to S.P. 198, L.D. 583, Bill, "An Act To 
O 
Improve the Tax Appeal Process for Maine Businesses and Consumers" 
Amend the bill by striking out evetything after the enacting clause and before the 
summaty and inserting the following: 
'Sec. 1. 36 MRSA §2011, as amended by PL 2013, c. 331, Pt. C, §10 and affected 
by §41, is further amended to read: 
§2011. Overpayment; refunds 
If the State Tax Assessor determines, upon written application by a taxpayer or 
7 
during the course of an audit, that any tax under this Pati has been paid more than once or 
has been erroneously or illegally collected or computed, the assessor shall cetiify to the 
State Controller the amount paid in excess of that legally due. That amount must be 
credited by the assessor on any taxes then due from the taxpayer and the balance refunded 
to the taxpayer or the taxpayer's successor in interest, but no such credit or refund may be 
· 22 
allowed unless within 3 years from the date of overpayment either a written petition 
stating the grounds upon which the refund or credit is claimed is filed with the assessor or 
the overpayment is discovered on audit. 
Interest at the rate determined pursuant to 
section 186 must be paid on any balance refunded pursuant to this chapter from the date 
the return listing the overpayment was filed or the date the payment was made, whichever 
is later, except that no interest may be paid with respect to the refunds provided by 
section 2013 and, in cases of excessive or etTOneous collections, interest must be paid in 
accordance with section 1814, subsection 3. At the election of the assessor, unless the 
taxpayer specifically requests a cash refund, the refund may be credited to the taxpayer's 
sales and use tax account, but, in the case of a credit no fu1iher interest may accrue from 
the date of that election. The taxpayer may not apply for a refund of any amount assessed 
when administrative and judicial review under section 151 has been completed. 
A taxpayer making an application for a refund or credit of erroneously or illegally 
5 
collected sales tax paid by the taxpayer to the retailer must submit an affidavit as 
prescribed by the assessor stating in part that the refund or credit has not been and will 
not be requested from the retailer. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 198, L.D. 583 
A taxpayer dissatisfied with the decision of the assessor, upon a written request for 
refund filed under this section may request reconsideration and appeal from the 
reconsideration in the same manner and under the same conditions as in the case of 
assessments made under chapter 7. The decision of the assessor upon a written request for 
refund becomes final as to law and fact in the same manner and under the same 
conditions as in the case of assessments made under chapter 7. 
Sec. 2. 36 MRSA §2551, sub-§2-A is enacted to read: 
2-A. Customer. "Customer" means a person who purchases one or more services 
subject to tax under section 2552, subsection 1. 
Sec. 3. 36 MRSA §2555, first 1, as enacted by PL 2003, c. 673, Pt. V, §25 and 
affected by §29, is amended to read: 
If the assessor detennines, upon written application by a taxpayer or during the 
course of an audit, that any tax has been paid more than once or has been enoneously or 
illegally computed, the assessor shall ce1iify to the State Controller the amount paid in 
excess of that legally due and that amount must be credited by the assessor on any taxes 
then due from the taxpayer and the balance refunded to the taxpayer or its successor in 
7 
interest, but no such credit or refund may be allowed unless within 3 years of the date of 
overpayment either a written petition stating the grounds upon which the refund or credit 
is claimed is filed with the assessor or the overpayment is discovered on audit. A credit 
or refund may not be allowed for tax that has been e1rnneously or illegally collected and 
separately stated on a customer's bill until the service provider has provided evidence 
satisfactmy to the assessor that the tax has been refunded or credited to the customer. 
Interest at the rate determined pursuant to section 186 must be paid on any balance 
refunded pursuant to this chapter from the date the return listing the overpayment was 
filed or the payment was made, whichever is later. At the election of the assessor, unless 
the taxpayer specifically requests a cash refund, the refund may be credited to the 
taxpayer's service provider tax account, but in the case of a credit no fu1iher interest may 
accrue from the date of that election. The taxpayer may not apply for a refund of any 
amount assessed when administrative and judicial review under section 151 has been 
completed. 
Sec. 4. 36 MRSA §2555-A is enacted to read: 
§2555-A. Refund or credit to customer 
A service provider tax that has been erroneously or illegally computed by a service 
provider and included on a customer's bill must be refunded or credited to the customer 
by the service provider. 
Sec. 5. Report. By Februmy 1, 2018, the State Tax Assessor shall review the 
adequacy of procedures and notices involved in the process of notifying taxpayers 
8 
regarding the basis of an assessment or a denial of a refund request and provide a repmi 
of the review to the Joint Standing Committee on Taxation. The report must describe the 
procedures and documents reviewed and any revisions implemented to ensure that 
taxpayers who receive notices or detenninations from the assessor are provided a brief, 
nontechnical explanation for an assessment or a denial of a refund request. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 198, L.D. 583 
Sec. 6. Application. 
The sections of the bill that amend the Maine Revised 
Statutes, Title 36, sections 2011 and 2555 apply to requests for credit or refund of sales 
tax paid to a retailer and service provider tax paid to a service provider for which 
administrative or judicial review is still available.' 
SUMMARY 
This amendment requires a person requesting a refund of sales and use tax to submit 
an affidavit to the State Tax Assessor stating that a refund or credit has not been and will 
not be requested from the retailer. The requirement applies to pending reconsiderations 
and administrative appeals. The amendment also revises the process for a customer of a 
service provider to obtain a refund or credit of tax that was erroneously or illegally 
computed. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/20/17 feac: 
LD 583 
LR 874(02) 
An Act To Improve the Tax Appeal Process for Maine Businesses and Consumers 
Fiscal Note for Bill as Amended by Committee Amendment A' ( S- J'J-j) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Fiscal Detail and Notes 
Additional costs to the Department of Administrative and Financial Services associated with reviewing and 
processing affidavits can be absorbed within existing budgeted resources. 
LR0874(02) - Fiscal Note - Page J of I