An Act To Improve the Tax Appeal Process for Maine Businesses and Consumers
Maine Legislature, Session 128, LD 0583
Committee: Taxation
Sponsors: LIBBY, STANLEY
Amends: 36 MRSA §151, 36 MRSA §2011-A, 36 MRSA §2555-A

Legislative Document
No. 583
S.P. 198
In Senate, February 16, 2017
An Act To Improve the Tax Appeal Process for Maine Businesses 
and Consumers
Reference to the Committee on Taxation suggested and ordered printed.
HEATHER J.R. PRIEST
Secretary of the Senate
Presented by Senator LIBBY of Androscoggin.
Cosponsored by Representative STANLEY of Medway.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §151, sub-§2, ¶H is enacted to read: 
H.  If a person requesting reconsideration under this section has been denied, in 
whole or in part, the relief requested, the assessor must provide the legal basis for the 
reconsideration decision. 
Sec. 2.  36 MRSA §2011-A is enacted to read: 
§2011-A.  Refund to purchaser 
Notwithstanding the other provisions of this Part, a purchaser from whom sales tax is 
collected erroneously or illegally under this Part who has not been reimbursed by the 
retailer may submit a written application for a refund from the State Tax Assessor in the 
same manner as is provided for a taxpayer under section 2011.  A purchaser making an 
application for a refund under this section must submit an affidavit as prescribed by the 
assessor stating that the refund or credit has not previously been requested or received 
from a retailer.  If the State Tax Assessor determines pursuant to an application from a 
purchaser under this section that a tax has been erroneously or illegally collected or 
computed, the assessor shall certify to the State Controller the amount paid in excess of 
that legally due and refund that amount to the purchaser.  A refund is not allowed under 
this section unless the application for a refund is made or the overpayment is discovered 
on audit within 3 years of the date of overpayment. 
A purchaser making an application for a refund under this section is entitled to the 
same rights of reconsideration and appeal as a taxpayer under section 2011. 
Sec. 3.  36 MRSA §2555-A is enacted to read: 
§2555-A.  Refund to purchaser 
Notwithstanding the other provisions of this chapter, a purchaser from whom service 
provider tax is collected erroneously or illegally under this chapter who has not been 
reimbursed by the service provider may submit a written application for a refund from the 
State Tax Assessor in the same manner as is provided for a taxpayer under section 2555.  
A purchaser making an application for a refund under this section must submit an 
affidavit as prescribed by the assessor stating that the refund or credit has not previously 
been requested or received from a retailer.  If the State Tax Assessor determines pursuant 
to an application from a purchaser under this section that a tax has been erroneously or 
illegally collected or computed, the assessor shall certify to the State Controller the 
amount paid in excess of that legally due and refund that amount to the purchaser.  A 
refund is not allowed under this section unless the application for a refund is made or the 
overpayment is discovered on audit within 3 years of the date of overpayment. 
A purchaser making an application for a refund under this section is entitled to the 
same rights of reconsideration and appeal as a taxpayer under section 2555. 
SUMMARY 
This bill expands the tax appeals process for taxpayers by permitting purchasers from 
whom sales tax or service provider tax has been collected to request a refund from the 
State Tax Assessor when taxes have been collected erroneously or illegally and the 
retailer or service provider has not refunded the tax.  The bill also permits a person 
appealing a reconsideration determination to request the legal basis of the determination.