An Act To Make Technical Changes to the Maine Tax Laws
Maine Legislature, Session 129, LD 1817
Committee: Taxation
Sponsors: TIPPING
Amends: 36 MRSA §208, 36 MRSA §381, 36 MRSA §506-A, 36 MRSA §691, 36 MRSA §843, 36 MRSA §1112, 36 MRSA §1285, 36 MRSA §6652, 36 MRSA §1752, 36 MRSA §1760, 36 MRSA §1861, 36 MRSA §2903, 36 MRSA §3203, 36 MRSA §3208, 36 MRSA §4362-A, 36 MRSA §4366-A, 36 MRSA §4402, 36 MRSA §4404, 36 MRSA §191, 36 MRSA §5121, 36 MRSA §5122, 36 MRSA §5219-B, 36 MRSA §5403

Legislative Document
No. 1817
H.P. 1294
House of Representatives, June 3, 2019
An Act To Make Technical Changes to the Maine 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.
ROBERT B. HUNT
Clerk
Presented by Representative TIPPING of Orono.
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  36 MRSA §208, as amended by PL 2017, c. 288, Pt. A, §36, is further 
amended to read:
§208.  Equalization
The State Tax Assessor has the duty of equalizing the state and county taxes among 
the several towns all municipalities and the unorganized territory.  The State Tax 
Assessor shall equalize and adjust the assessment list of each town municipality, by 
adding to or deducting from it such amount as will make it equal to its just value as of 
April 1st.  Notice of the proposed valuations of municipalities within each county must be 
sent annually by certified mail to the chair of the board of assessors, and chair of the 
board of selectmen in municipalities having selectmen, of each municipality within that 
county on or before the first day of October.  The valuation so determined is subject to 
review by the State Board of Property Tax Review pursuant to subchapter 2-A, but the 
valuation finally certified to the Secretary of State pursuant to section 381 must be used 
for all computations required by law to be based upon the state valuation with respect to 
municipalities.
Sec. A-2.  36 MRSA §381, as corrected by RR 2013, c. 2, §44, is amended to read:
§381.  State valuation; definition; to be filed with Bureau of Revenue Services 
annually
The term "state valuation" as used in reference to the unorganized territory in this 
Title, except in this chapter and chapter 105, means an annual valuation of all property 
subject to a Maine property tax but not taxable by a municipality.  The annual valuation is 
to be completed by and on file in the office of the Bureau of Revenue Services prior to 
the assessment of the annual property tax in the unorganized territory.  The annual 
valuation is to be based on the status of property on April 1st.  In this chapter, in chapter 
and outside of this Title, the term "state valuation" means the valuation filed with the 
Secretary of State pursuant to section 305, subsection 1.
Sec. A-3.  36 MRSA §506-A, as amended by PL 2009, c. 434, §14, is further 
amended to read:
§506-A.  Overpayment of taxes
Except as provided in section 506, a taxpayer who pays an amount in excess of that 
finally assessed must be repaid the amount of the overpayment plus interest from the date 
of overpayment at a rate to be established by the municipality.  The rate of interest may 
not exceed the interest rate established by the municipality for delinquent taxes nor may it 
be less than that rate reduced by 4% 4 percentage points.  If a municipality fails to 
establish a rate of interest for overpayments of taxes, it shall pay interest at the rate it has 
established for delinquent taxes.
Sec. A-4.  36 MRSA §691, sub-§1, ¶A, as repealed and replaced by PL 2017, c. 
475, Pt. A, §61, is amended to read:
A.  "Eligible business equipment" means qualified property that, in the absence of 
this subchapter, would first be subject to assessment under this Part on or after April 
1, 2008.  "Eligible business equipment" includes, without limitation, repair parts, 
replacement parts, replacement equipment, additions, accessions and accessories to 
other qualified business property that first became subject to assessment under this 
Part before April 1, 2008 if the part, addition, equipment, accession or accessory 
would, in the absence of this subchapter, first be subject to assessment under this Part 
on or after April 1, 2008.  "Eligible business equipment" also includes inventory 
parts. "Eligible business equipment" does not include property eligible for exemption 
under section 652.
"Eligible business equipment" does not include:
(1)  Office furniture, including, without limitation, tables, chairs, desks, 
bookcases, filing cabinets and modular office partitions;
(2)  Lamps and lighting fixtures used primarily for the purpose of providing 
general purpose office or worker lighting;
(3)  Property owned or used by an excluded person;
(4)  Telecommunications personal property subject to the tax imposed by section 
457;
(5)  Gambling machines or devices, including any device, machine, paraphernalia 
or equipment that is used or usable in the playing phases of any gambling activity 
as that term is defined in Title 8, section 1001, subsection 15, whether that 
activity consists of gambling between persons or gambling by a person involving 
the playing of a machine. "Gambling machines or devices" includes, without 
limitation:
(a)  Associated equipment as defined in Title 8, section 1001, subsection 2;
(b)  Computer equipment used directly and primarily in the operation of a 
slot machine as defined in Title 8, section 1001, subsection 39;
(c)  An electronic video machine as defined in Title 17, section 1831, 
subsection 4;
(d)  Equipment used in the playing phases of lottery schemes; and
(e)  Repair and replacement parts of a gambling machine or device; 
(6)  Property located at a retail sales facility and used primarily in a retail sales 
activity unless the property is owned by a business that operates a retail sales 
facility in the State exceeding 100,000 square feet of interior customer selling 
space that is used primarily for retail sales and whose Maine-based operations 
derive less than 30% of their total annual revenue on a calendar year basis from 
sales that are made at a retail sales facility located in the State.  For purposes of 
this subparagraph, the following terms have the following meanings:
(a)  "Primarily" means more than 50% of the time;
(b)  "Retail sales activity" means an activity associated with the selection and 
retail purchase of goods or rental of tangible personal property.  "Retail sales 
activity" does not include production as defined in section 1752, subsection 
9-B; and
(c)  "Retail sales facility" means a structure used to serve customers who are 
physically present at the facility for the purpose of selection and retail 
purchase of goods or rental of tangible personal property.  "Retail sales 
facility" does not include a separate structure that is used as a warehouse or 
call center facility;
(7)  Property that is not entitled to an exemption by reason of the additional 
limitations imposed by subsection 2; or
(8)  Personal property that would otherwise be entitled to exemption under this 
subchapter used primarily to support a telecommunications antenna used by a 
telecommunications business subject to the tax imposed by section 457.
Sec. A-5.  36 MRSA §843, sub-§4, as amended by PL 2009, c. 434, §16, is 
further amended to read:
4.  Payment requirements for taxpayers.  If the taxpayer has filed an appeal under 
this section without having paid an amount of current taxes equal to the amount of taxes 
paid in the next immediately preceding tax year, as long as that amount does not exceed 
the amount of taxes due in the current tax year or the amount of taxes in the current tax 
year not in dispute, whichever is greater, by or after the due date or according to a 
payment schedule mutually agreed to in writing by the taxpayer and the municipal 
officers, the appeal process must be suspended until the taxes, together with any accrued 
interest and costs, have been paid.  If an appeal is in process upon expiration of a due date 
or written payment schedule date for payment of taxes in a particular municipality, 
without the appropriate amount of taxes having been paid, whether the taxes are due for 
the year under appeal or a subsequent tax year, the appeal process must be suspended 
until the appropriate amount of taxes described in this subsection, together with any 
accrued interest and costs, has been paid.  This subsection does not apply to property with 
a valuation of less than $500,000.
Sec. A-6.  36 MRSA §1112, 3rd ¶, as amended by PL 2011, c. 618, §8, is further 
amended to read:
A penalty may not be assessed at the time of a change of use from the farmland 
classification of land subject to taxation under this subchapter to the open space 
classification of land subject to taxation under this subchapter.  A penalty may not be 
assessed upon the withdrawal of farmland or open space land from taxation under this 
subchapter if the owner applies for the land to be classified as and the land is accepted for 
classification as timberland under subchapter 2-A.  There also is no penalty imposed 
when land classified as timberland is accepted for classification as open space land.  A 
penalty may not be assessed upon withdrawal of open space land from taxation under this 
subchapter if the owner applies for the land to be classified as and the land is accepted for 
classification as farmland under this subchapter.  A penalty may not be assessed upon 
withdrawal of land enrolled under the Maine Tree Growth Tax Law if the owner applies 
for the land to be classified as and the land is accepted for classification as farmland 
under this chapter.  The recapture penalty for withdrawal from farmland classification 
within 10 years of a transfer from either open space tax classification or timberland tax 
classification is the same imposed on withdrawal from the prior tax classification, open 
space or tree growth.  The recapture penalty for withdrawal from farmland classification 
more than 10 years after such a transfer will be the regular farmland recapture penalty 
provided for in this section.  In the event a penalty is later assessed under subchapter 2-A, 
the period of time that the land was taxed as farmland or as open space land under this 
subchapter must be included for purposes of establishing the amount of the penalty.  The 
recapture penalty for withdrawal from open space classification within 10 years of a 
transfer from tree growth classification occurring on or after August 1, 2012 is the same 
that would be imposed if the land were being withdrawn from the tree growth 
classification.  The recapture penalty for withdrawal from open space classification more 
than 10 years after such a transfer will be the open space recapture penalty provided for in 
this section.
Sec. A-7.  36 MRSA §1285, as amended by PL 1979, c. 666, §33, is further 
amended to read:
§1285.  Collection of taxes in unorganized territory
In addition to the methods of collecting state taxes provided by law, owners of real 
estate in the unorganized townships shall be territory are liable to pay for payment of  
such taxes to the State Tax Assessor upon demand.  If such taxes shall are not be paid 
within 30 days after such demand, the State Tax Assessor may collect the same, with 
interest as provided by law, by a civil action in the name of the State.  Such This action 
shall must be brought in a court of competent jurisdiction in the county where such 
unorganized townships are real estate is located, and the Attorney General may begin and 
prosecute such actions when requested by the State Tax Assessor.  The demand shall be is 
sufficient if made by a writing mailed to such owner or his the owner's agent at his the 
owner's usual post-office post office address.  In case such owner resides without outside 
the State and has no agent within the State known to the State Tax Assessor, such demand 
shall be is sufficient if made upon the Director of the Bureau of Forestry.  Such action 
shall must be brought not less than 30 days after the giving or mailing of the demand.  
The beginning of such action, obtaining execution and collecting the same shall be is 
deemed a waiver of the rights of the State under sections 1281 and 1282.  In case the 
owners of any such real estate are unknown, the demand shall be is sufficient if 
advertised in the state paper and in some newspaper, if any, published in the county in 
which the real estate lies is located.
Sec. A-8.  36 MRSA §6652, sub-§1-C, ¶C, as amended by PL 2001, c. 396, §47, 
is further amended to read:
C.  A cogeneration facility is eligible for reimbursement on that portion of property 
taxes paid multiplied by a fraction, the numerator of which is the total amount of 
useful energy produced by the facility during the property tax year immediately 
preceding the property tax year for which a claim is being made that is directly used 
by a manufacturing facility without transmission over the facilities of a transmission 
and distribution utility as defined in Title 35-A, section 102, subsection 20-B and the 
denominator of which is the total amount of useful energy produced by the facility 
during the property tax year immediately preceding the property tax year for which a 
claim is being made.
Sec. A-9.  Maine Revised Statutes headnote amended; revision clause.  In 
the Maine Revised Statutes, Title 36, chapter 103, subchapter 1, in the subchapter 
headnote, the words "state valuation; abatements" are amended to read "state valuation" 
and the Revisor of Statutes shall implement this revision when updating, publishing or 
republishing the statutes.
PART B
Sec. B-1.  36 MRSA §1752, sub-§15, as amended by PL 2005, c. 218, §16, is 
repealed.
Sec. B-2.  36 MRSA §1752, sub-§16, as amended by PL 1965, c. 114, is 
repealed.
Sec. B-3.  36 MRSA §1752, sub-§21, as amended by PL 2005, c. 215, §17, is 
further amended to read:
21.  Use.  "Use" includes means the exercise in this State of any right or power over 
tangible personal property incident to its ownership, including storage of the property and 
the derivation of income from the rental of the property, whether received in money or in 
the form of other benefits, by a lessor from the rental of tangible personal property 
located in this State.  "Use" does not include keeping, retaining or exercising power over 
tangible personal property brought into the State for the purpose of subsequently 
transporting it outside the State for use by the purchaser thereafter solely outside the State 
or for the purpose of being processed, fabricated, manufactured or incorporated into or 
attached to other tangible personal property to be transported outside the State and 
thereafter used by the purchaser solely outside the State.
Sec. B-4.  36 MRSA §1760, first ¶, as amended by PL 1999, c. 521, Pt. A, §6, is 
further amended to read:
Subject to the provisions of section 1760-C, no tax on sales, storage or use may be 
collected upon or in connection with:
Sec. B-5.  36 MRSA §1760, sub-§50, as amended by PL 2013, c. 420, §1, is 
repealed and the following enacted in its place:
50.  Certain libraries; library support organizations.  Sales:
A.  To a nonprofit free public lending library that is funded in part or wholly by the 
State or any political subdivision of the State or the Federal Government; and
B.  By a library as described in paragraph A or a nonprofit corporation organized to 
support a library as described in paragraph A, as long as the proceeds from the sales 
are used to benefit the library.
Sec. B-6.  36 MRSA §1861, as amended by PL 1995, c. 640, §6, is further 
amended to read:
§1861.  Imposition
A tax is imposed, at the respective rate provided in section 1811, on the storage, use 
or other consumption in this State of tangible personal property or a service, the sale of 
which would be subject to tax under section 1764 or 1811.  Every person so storing, using 
or otherwise consuming is liable for the tax until the person has paid the tax or has taken 
a receipt from the seller, as duly authorized by the assessor, showing that the seller has 
collected the sales or use tax, in which case the seller is liable for it.  Retailers registered 
under section 1754-B or 1756 shall collect the tax and make remittance to the assessor.  
The amount of the tax payable by the purchaser is that provided in the case of sales taxes 
by section 1812.  When tangible personal property purchased for resale is withdrawn 
from inventory by the retailer for the retailer's own use, use tax liability accrues at the 
date of withdrawal.
Sec. B-7.  36 MRSA §2903, sub-§1, as amended by PL 2011, c. 240, §24, is 
further amended to read:
1.  Excise tax imposed.  Beginning July 1, 2008 and ending June 30, 2009, an An 
excise tax is imposed on internal combustion engine fuel used or sold in this State, 
including sales to the State or a political subdivision of the State, at the rate of 28.4¢ 
30.0¢ per gallon, except that the rate is 3.4¢ per gallon on internal combustion engine fuel 
bought or used for the purpose of propelling jet or turbojet engine aircraft.  Beginning 
July 1, 2009, an excise tax is imposed on internal combustion engine fuel used or sold in 
this State, including sales to the State or a political subdivision of the State, at the rate of 
29.5¢ per gallon, except that the rate is 3.4¢ per gallon on internal combustion engine fuel 
bought or used for the purpose of propelling jet engine aircraft.  The tax rate provided by 
this subsection except the rate of tax imposed on fuel bought or used for the purpose of 
propelling jet engine aircraft is subject to an annual inflation adjustment pursuant to 
section 3321.  Any fuel containing at least 10% internal combustion engine fuel is subject 
to the tax imposed by this section.
Sec. B-8.  36 MRSA §3203, sub-§1-B, as amended by PL 2011, c. 240, §25, is 
further amended to read:
1-B.  Generally; rates.  Except as provided in section 3204-A, beginning July 1, 
2008 and ending June 30, 2009, an excise tax is levied and imposed on all suppliers of 
distillates sold, on all retailers of low-energy fuel sold and on all users of special fuel 
used in this State for each gallon of distillate at the rate of 29.6¢ 31.2¢ per gallon.  
Beginning July 1, 2009, an excise tax is levied and imposed on all suppliers of distillates 
sold, on all retailers of low-energy fuel sold and on all users of special fuel used in this 
State for each gallon of distillate at the rate of 30.7¢ per gallon.  Tax rates for each gallon 
of low-energy fuel are based on the British Thermal Unit, referred to in this subsection as 
"BTU," energy content for each fuel as based on gasoline gallon equivalents or the 
comparable measure for distillates.  The gasoline gallon equivalent is the amount of 
alternative fuel that equals the BTU energy content of one gallon of gasoline.  In the case 
of distillates, the tax rate provided by this section is subject to annual inflation adjustment 
pursuant to section 3321.  For purposes of this subsection, "base rate" means the rate in 
effect for gasoline or diesel on July 1st of each year as indexed under section 3321.  A 
biodiesel blend containing less than 90% biodiesel fuel is subject to the rate of tax 
imposed on diesel.
A.  This paragraph establishes the applicable BTU values and tax rates based on 
gasoline gallon equivalents.
B.  This paragraph establishes the applicable BTU values and tax rates based on 
distillate gallon equivalents.
C.  The conversion factors established in this paragraph must be used in converting to 
gasoline gallon equivalents.
(1)  For compressed natural gas, BTUs per 100 standard cubic feet is 93,000, and 
there are 123.66 standard cubic feet per gasoline gallon equivalent.
(2)  For hydrogen, BTUs per 100 standard cubic feet is 27,000, and there are 
425.93 standard cubic feet per gasoline gallon equivalent.
(3)  For hydrogen compressed natural gas, BTUs per 100 standard cubic feet is 
79,800, and there are 144.11 standard cubic feet per gasoline gallon equivalent.
Sec. B-9.  36 MRSA §3208, first ¶, as amended by PL 2007, c. 438, §78, is 
further amended to read:
Every user subject to the tax imposed by section 3203 is entitled to a credit on the 
tax, equivalent to the then current rate of taxation per gallon imposed by section 3203 as 
Fuel type based on gasoline BTU content per gallon or 
gasoline gallon equivalent
Tax rate formula (BTU 
value fuel/BTU value 
gasoline) x base rate 
gasoline
Gasoline
115,000
100% x base rate
Propane
84,500
73% x base rate
Compressed Natural Gas 
(CNG)
115,000
100% x base rate
Methanol
56,800
49% x base rate
Ethanol
76,000
66% x base rate
Hydrogen
115,000
100% x base rate
Hydrogen Compressed 
Natural Gas
115,000
100% x base rate
Fuel type based on diesel
BTU content per gallon or 
gallon equivalent
Tax rate formula (BTU 
value fuel/BTU value 
diesel) x base rate diesel
Diesel
128,400
100% x base rate
Liquefied Natural Gas 
(LNG)
73,500
57% x base rate
Biodiesel
118,300
92% x base rate
adjusted pursuant to section 3321, on all special fuel purchased by that user from a 
supplier or retailer licensed in accordance with section 3204 upon which the tax imposed 
by section 3203 has been paid.  Evidence of the payment of that tax, in a form required by 
or satisfactory to the State Tax Assessor, must be furnished by each user claiming the 
credit.  When the amount of the credit to which any user is entitled for any quarter 
exceeds the amount of the tax for which that user is liable for the same quarter, the excess 
may be allowed as a credit on the tax for which that user would be otherwise liable for 
another quarter or quarters.  Upon application to the assessor, the excess may be refunded 
if the applicant has paid to another state or province under a lawful requirement of that 
jurisdiction a tax similar in effect to the tax imposed by section 3203 on the use or 
consumption of that fuel outside the State, at the same rate per gallon that tax was paid in 
this State, but in no case to exceed the then current rate per gallon of the tax imposed by 
section 3203 as adjusted pursuant to section 3321.  Upon receipt of the application the 
assessor, if satisfied after investigation that a refund is justified, shall so certify to the 
State Controller.  The refund must be paid out of the Highway Fund.  This credit lapses at 
the end of the last quarter of the year following that in which the credit arose.
Sec. B-10.  36 MRSA §4362-A, sub-§1, as amended by PL 2015, c. 300, Pt. A, 
§36, is further 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 of the 
business covered by the license.  A person required to be licensed as a distributor 
pursuant to this chapter must also be in compliance with Title 22, section 1580-L.  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. B-11.  36 MRSA §4362-A, sub-§3, as amended by PL 2003, c. 439, §2, is 
repealed.
Sec. B-12.  36 MRSA §4362-A, sub-§5, as amended by PL 2007, c. 438, §90, is 
further amended to read:
5.  Surrender, revocation and suspension.  When the business with respect to 
which a license was issued pursuant to this section is sold or ceases to do business in this 
State, the holder of the license shall immediately surrender it to the assessor.  The 
assessor may revoke or suspend the license of a distributor for failure to comply with any 
provision of this chapter or if the distributor no longer imports or sells cigarettes.  A 
license that has been revoked or suspended pursuant to this subsection must be 
immediately surrendered to the assessor.  Any person aggrieved by a revocation or 
suspension may request reconsideration as provided in section 151.
Sec. B-13.  36 MRSA §4366-A, sub-§4-A, as amended by PL 2011, c. 441, §1, is 
repealed.
Sec. B-14.  36 MRSA §4366-A, sub-§4-B, as enacted by PL 2011, c. 441, §2, is 
amended to read:
4-B.  Redemption of stamps.  Beginning July 1, 2012, the The assessor shall redeem 
any unused, uncancelled stamps presented within one year of the date of purchase by a 
licensed distributor at a price equal to the amount paid for them.  Credit for uncancelled 
stamps is allowed only on full, unopened rolls unless the distributor ceases business as a 
distributor and returns the license issued under section 4362-A.  The assessor may also 
redeem, at face value, cigarette tax stamps affixed to packages of cigarettes that have 
become unsalable if application is made within 90 days of the return of the unsalable 
cigarettes to the manufacturer or of the destruction of the unsalable cigarettes by the 
distributor.  The assessor may either witness the destruction of the unsalable cigarettes or 
may accept another form of proof that the unsalable cigarettes have been destroyed by the 
distributor or returned to the manufacturer.
Sec. B-15.  36 MRSA §4402, sub-§1, as amended by PL 2015, c. 300, Pt. A, §37, 
is further 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 chapter 262-A, subchapter 1.  A distributor's license must be prominently 
displayed on the premises of the business covered by the license and may not be 
transferred to any other person.  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. B-16.  36 MRSA §4402, sub-§3, as enacted by PL 2005, c. 627, §7, is 
repealed.
Sec. B-17.  36 MRSA §4402, sub-§5, as amended by PL 2013, c. 331, Pt. C, §31 
and affected by §41, is further amended to read:
5.  Surrender, revocation and suspension.  When the business with respect to 
which a license was issued pursuant to this section is sold or ceases to do business in this 
State, the holder of the license shall immediately surrender it to the assessor.  The 
assessor may revoke or suspend the license of any distributor for failure to comply with 
any provision of this chapter or if the person no longer imports or sells tobacco products.  
A license that has been revoked or suspended pursuant to this subsection must be 
immediately surrendered to the assessor.  A person aggrieved by a revocation or 
suspension may request reconsideration as provided in section 151.
Sec. B-18.  36 MRSA §4402, sub-§§6 and 7, as enacted by PL 2005, c. 627, §7, 
are amended to read:
6.  License directory maintained.  The assessor shall maintain a directory of 
distributors licensed pursuant to this chapter.  The assessor shall update the directory as 
necessary, but not less than annually.  Notwithstanding the provisions of section 191, the 
list must be available to the public and must be posted on a publicly accessible website 
maintained by the assessor.  The directory must be mailed annually to all retailers at or 
near the time of renewal of a retail tobacco license issued under Title 22, section 1551-A 
chapter 262-A, subchapter 1.
7.  Notification.  A licensed distributor that does not renew or maintain a license, or 
that has its license suspended or revoked, within 10 business days of the suspension or 
revocation, shall inform in writing all its accounts in this State that it no longer holds a 
valid license under this section.  The licensed distributor shall inform its accounts in this 
State within 10 business days of the event giving rise to such notice.  Notwithstanding the 
provisions of section 191, the assessor may publish the names of distributors that have 
not renewed or maintained a license or that have had a license suspended or revoked.
Sec. B-19.  36 MRSA §4404, 2nd ¶, as amended by PL 2011, c. 441, §3, is 
repealed.
Sec. B-20.  36 MRSA §4404, 3rd ¶, as enacted by PL 2011, c. 441, §4, is 
amended to read:
Beginning July 1, 2012, the The return must include further information as the 
assessor may prescribe and must show a credit for any tobacco products exempted as 
provided in section 4403.  Records must be maintained to substantiate the exemption.  
Tax previously paid on tobacco products that are returned to a manufacturer or a 
distributor because the product has become unfit for use, sale or consumption and for 
tobacco products that are returned to a distributor that are subsequently destroyed by the 
distributor may be taken as a credit on a subsequent return.  The assessor may either 
witness the destruction of the product or may accept another form of proof that the 
product has been destroyed by the distributor or returned to the manufacturer.
PART C
Sec. C-1.  36 MRSA §191, sub-§2, ¶VV, as amended by PL 2013, c. 331, Pt. B, 
§3, is repealed.
Sec. C-2.  36 MRSA §5121, as amended by PL 2003, c. 390, §26, is further 
amended to read:
§5121.  Maine taxable income
The Maine taxable income of a resident individual is equal to the individual's federal 
adjusted gross income as defined by the Code with the modifications and less the 
deductions and personal exemptions provided in this chapter.
Sec. C-3.  36 MRSA §5122, sub-§2, ¶E, as amended by PL 2017, c. 375, Pt. C, 
§1, is further amended to read:
E.  Pick-up contributions paid to the taxpayer by the Maine Public Employees 
Retirement System or distributed as the result of a rollover, whether or not included 
in federal adjusted gross income, that have been previously taxed under this Part.  For 
tax years beginning on or after January 1, 2018, in the case of a distribution as a 
result of a rollover, the modification allowed under this paragraph may be subtracted 
fully or in part during the tax year of the rollover.  Any amount not subtracted in the 
tax year of the rollover may be subtracted within the 2 tax years immediately 
following the year of the rollover, except that the total amount subtracted over the 
3-year period may not exceed the pick-up contributions that have been previously 
taxed under this Part during that 3-year period;
Sec. C-4.  36 MRSA §5219-BB, sub-§3, as amended by PL 2009, c. 361, §28 
and affected by §37, is further amended to read:
3.  Increased credit for a certified affordable housing project.  The credit allowed 
under this section is increased to 30% of certified qualified rehabilitation expenditures for 
a certified affordable housing project.  If the certified affordable housing project for 
which an increased credit was allowed under this subsection does not remain an 
affordable housing project for 30 years from the date the affordable housing project is 
placed in service, the owner of the property is subject to the repayment provisions of Title 
30-A, section 4722, subsection 1, paragraph DD.  Upon notification by the Maine 
Historic Preservation Commission and the Maine State Housing Authority pursuant to 
Title 30-A, section 4722, subsection 1, paragraph DD, subparagraph  4  (4), the State Tax 
Assessor shall raise increase the credit increase amount allowed rate under this subsection 
that was in effect in the calendar year prior to the calendar year in which the notification 
was received by one percentage point for tax years beginning in the calendar year of that 
notification and for any subsequent tax year.  The maximum total credit allowed under 
this subsection In no event may not the credit rate under this subsection exceed 35% of 
the taxpayer's certified qualified rehabilitation expenditures.
Sec. C-5.  36 MRSA §5403, sub-§6, as amended by PL 2017, c. 474, Pt. B, §23, 
is further amended to read:
6.  Property tax fairness credit.  Beginning in 2018 and each year thereafter, by the 
benefit base amounts in section 5219-KK, subsection 1, paragraph A-1, except that for 
the purposes of this subsection, notwithstanding section 5402, subsection 1-B, the 
"cost-of-living adjustment" is the Chained Consumer Price Index for the 12-month period 
ending June 30th of the preceding calendar year divided by the Chained Consumer Price 
Index for the 12-month period ending June 30, 2017;
Sec. C-6.  PL 2017, c. 474, Pt. D, §4, as corrected by RR 2017, c. 2, §17, is 
amended to read:
Sec. D-4.  Application. This With the exception of those portions of those sections 
of this Part that enact the Maine Revised Statutes, Title 36, section 5200-A, subsection 1, 
paragraph FF and subsection 2, paragraph EE, which apply to tax years beginning on or 
after January 1, 2018, this Part applies to tax years beginning on or after January 1, 2017, 
except that those portions of those sections of this Part that enact the Maine Revised 
Statutes, Title 36, section 5200-A, subsection 1, paragraph FF and subsection 2, 
paragraph EE apply to tax years beginning on or after January 1, 2018.
SUMMARY
This bill makes a number of technical changes to the Maine tax laws.
Part A:
1.  Makes clerical corrections to outdated language and gender references;
2.  Adds a cross-reference to the Maine Revised Statutes, Title 36, chapter 105 and 
corrects a headnote;
3.  Corrects a mathematical error in which 4% was used instead of 4 percentage 
points;
4.  Clarifies the use of the related terms "eligible business equipment" and "qualified 
property" and amends the definition of "eligible business equipment";
5.  Corrects a reference to the preceding tax year;
6.  Eliminates the penalty for transfer of land from farmland to timberland to match 
current practice and all other transfers between current use programs; and
7.  Corrects the time period used for determining when cogeneration facility property 
is eligible for reimbursement to include the most current available cogeneration data.
Part B:
1.  Removes the definitions of "storage" and "storage or use" and expands the 
definition of "use" to improve the clarity and logic of these terms;
2.  Clarifies the sales and use tax exemption for libraries and organizations that 
support libraries;
3.  Removes obsolete language related to the previously repealed indexing of the 
gasoline excise tax and the special fuel excise tax rates and clarifies the current applicable 
rates; and
4.  Repeals the annual licensing requirements for distributors of cigarettes and 
tobacco products.
Part C:
1.  Repeals a redundant confidentiality exemption for the taxpayer advocate;
2.  Clarifies the definition of Maine taxable income;
3.  Clarifies that the subtraction modification for Maine Public Employees Retirement 
System pick-up contributions is allowed for the amount of pick-up contributions that 
were previously taxed by Maine, not just the amount of pick-up contributions taxed 
during the previous 3 years;
4.  Clarifies that the increased credit rate applicable to certified qualified 
rehabilitation expenditures for a certified affordable housing project is increased by one 
percentage point each year the State Tax Assessor is notified by the Maine Historic 
Preservation Commission and the Maine State Housing Authority that the percentage of 
certified affordable housing projects is below 30% of the total aggregate square feet of 
projects eligible for the historic preservation credit.  The increased credit rate may not 
exceed 35%.  It further clarifies that the increased credit rate for certified affordable 
housing projects applies to tax years beginning in the year of notification and to any 
subsequent tax year;
5.  Makes a typographical correction; and
6.  Makes clarifying changes to an application clause.