An Act To Phase Out the Insurance Premium Tax on Annuities
Maine Legislature, Session 129, LD 0625
Committee Amendment CA_A_H32 (House)
Amends: 36 MRSA §2513-C

COMMITTEE AMENDMENT "A" to H.P. 453, L.D. 625, Bill, "An Act To Phase 
Out the Insurance Premium Tax on Annuities" 
Amend the bill by striking out all of section 2 and inserting the following: 
'Sec. 2. 36 MRSA §2513-C is enacted to read: 
§2513-C. Tax on annuity considerations 
1. Phase-out of tax. Notwithstanding the other provisions of this chapter, the rate of 
tax under this chapter for annuity considerations is 1.8% in calendar year 2020, 1.6% in 
calendar year 2021, 1.4% in calendar year 2022, 1.2% in calendar year 2023, 1 % in 
calendar year 2024, 0.8% in calendar year 2025, 0.6% in calendar year 2026, 0.4% in 
calendar year 2027 and 0.2% in calendar year 2028. Beginning in calendar year 2029, 
annuity considerations are not subject to tax under this chapter, but taxes due for previous 
years may be collected. 
2. Application of reduced rate on annuities. The reduced rates specified in 
subsection 1 for calendar years 2020 to 2028 apply to premimns on an annuity paid by 
annuity holders in this State only if the tax savings from the reduced rate are credited to 
the annuity holders. Upon request of the bureau, an insurer shall submit evidence that 
establishes that the tax savings derived from the reduced rate under this section have been 
credited to the annuity holders. 
3. 
Foreii:;n insurance companies. 
Section 2519 does not apply to annuity 
considerations subject to tax under this section.' 
Amend the bill by adding after section 3 the following: 
'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 one-time funding for computer programming costs. 
1TTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 453, L.D. 625 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2019-20 
$33,000 
$33,000 
2020-21 
$0 
$0 
Amend the bill by relettering or renumbering any nonconsecutive Part letter 01· 
section number to read consecutively. 
SUMMARY 
This amendment changes the phase-out of the insurance premium tax on annuity 
considerations from 4 years to 9 yem·s and provides that during the phase-out period the 
retaliatory tax on non-Maine insurance companies does not apply. The amendment also 
adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMIT EAMENDMENT 
Net Cost (Savings) 
General Fund 
Approved: 03/07/19 ;t,/.ac. 
LD625 
LR612(02) 
An Act To Phase Out the Insurance Premium Tax on Annuities 
.\ 
Fiscal Note for Bill as Amended by Committee Amendment ,A, {fl ... 5:).) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY2020-21 
Projections 
FY 2021-22 
Projections 
FY2022-23 
$303,000 
$800,000 
$1,380,000 
$1,970,000 
Appropriations/Allocations 
General Fund 
$33,000 
$0 
$0 
$0 
Revenue 
General Fund 
($270,000) 
($800,000) 
($1,380,000) 
($1,970,000) 
Fiscal Detail and Notes 
This bill phases out the insurance premium tax on annuity considerations over a 10 year period with the tax eliminated 
in year 10 and thereafter. This would result in a loss of General Fund revenue of $270,000 in fiscal year 2019-20 and 
$800,000 in fiscal year 2020-21. When fully phased out the loss of General Fund revenue will have grown to 
$5,600,000 annually. The bill includes a one-time General Fund appropriation to the Department of Administrative 
and Financial Services of $33,000 in fiscal year 2019-20 for computer programming costs. 
LR0612(02) • Fiscal Note· Page 1 of 1