An Act to Require a Corporation That Files a Tax Return in the State to File a Tax Disclosure Statement
Maine Legislature, Session 131, LD 1337
Committee: Taxation
Sponsors: MATLACK
Amends: 13-C MRSA §1624

Legislative Document
No. 1337
H.P. 851
House of Representatives, March 28, 2023
An Act to Require a Corporation That Files a Tax Return in the 
State to File a Tax Disclosure Statement
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MATLACK of St. George.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  13-C MRSA §1624 is enacted to read:
§1624.  Annual tax disclosure statement
1. Required filing of annual tax disclosure statement. No later than 30 days 
following the filing of a tax return under Title 36, Part 8, a corporation authorized to do 
business in this State shall file with the Department of Administrative and Financial 
Services, Bureau of Revenue Services in an electronic format specified by the bureau a tax 
disclosure statement as described in subsection 2 unless excused as provided in section 
1621, subsection 4 or excluded by section 1621, subsection 6. In the case of a corporation 
not required to file a tax return under Title 36, Part 8, the corporation shall file the tax 
disclosure statement within 90 days of filing a federal tax return or a federal consolidated 
return. For purposes of this section, "corporation" includes a domestic corporation, a 
foreign corporation and a financial institution as defined in Title 36, section 5206-D, 
subsection 8, but does not include a qualified personal service corporation as defined in the 
United States Internal Revenue Code of 1986, Section 448.
2. Content of tax disclosure statement. The information in the tax disclosure 
statement under subsection 1 must include the following, as applicable:
A. The information required under section 1621, subsection 1;
B. The name and the street address of a corporation that owns, directly or indirectly, 
50% or more of the voting stock of the corporation;
C. The corporation's North American Industry Classification System code number;
D. The unique code number assigned by the Secretary of State to identify the 
corporation, which remains constant from year to year;
E. Information reported on or used in preparing a combined report required by Title 
36, sections 5206-G and 5244 or, in the case of a corporation not required to file a 
report under Title 36, section 5206-G or 5244, the information that would be required 
to be reported on or used in preparing the report if the corporation were required to file 
such a report, including as applicable:
(1) Total receipts of the affiliated group of which the corporation is a member;
(2) Total cost of goods sold claimed as a deduction from gross income by the 
affiliated group of which the corporation is a member;
(3) Taxable income of the corporation and the affiliated group of which the 
corporation is a member prior to net operating loss deductions or apportionment;
(4) Property, payroll and sales apportionment factors of the corporation and the 
overall apportionment factor as calculated on the combined report;
(5) Total business income and nonbusiness income of the corporation apportioned 
to the State;
(6) Net operating loss deduction, if any, of the corporation apportioned to the State;
(7) Total tax before credits;
(8) Each tax credit claimed and accumulated tax credit carry-overs, enumerated by 
credit;
(9) Alternative minimum tax due; and
(10) Tax due and tax paid including tax paid under protest;
F. Total deductions for management services fees, for rent and for royalty, interest, 
license fee and similar payments for the use of intangible property paid to any affiliated 
entity that is not included in the affiliated group that includes the corporation and the 
names and principal office addresses of the entities to which the payments were made;
G. A description of the source of any nonbusiness income reported on the report and 
the identification of the state to which such income was reported;
H. A list of all corporations included in the affiliated group that includes the 
corporation, the corporations' state identification numbers and a listing of all variations 
in the affiliated group that includes the corporation used in filing corporate income or 
franchise tax returns;
I. Full-time-equivalent employment of the corporation in the State on the last day of 
the tax year for which the return is being filed and for the 3 previous tax years;
J. In the case of a publicly traded corporation incorporated in the United States or the 
affiliate of such a publicly traded corporation, profits before tax reported on the United 
States Securities and Exchange Commission Form 10-K or a successor form for the 
corporation, or the affiliated group of which the corporation is a member, for the 
corporate fiscal year that contains the last day of the tax year for which the return is 
filed; and
K. Property and payroll factors for the corporation for this State calculated on the basis 
of combined reporting.
3. Alternative tax disclosure statement. Instead of the statement described in 
subsection 2, a corporation doing business in this State but not required to file a tax return 
under Title 36, Part 8 may file with the Department of Administrative and Financial 
Services, Bureau of Revenue Services:
A. The information specified in subsection 2, paragraphs A to D;
B. An explanation of why the corporation is not required to file a corporate income tax 
return in this State; and
C. A range for the corporation's total gross receipts from sales to purchasers in the tax 
year for which the tax disclosure statement otherwise would be due.
4. Supplemental information. A corporation submitting a tax disclosure statement 
required by this section may submit supplemental information that, in the corporation's sole 
judgment, could facilitate proper interpretation of the information included in the 
statement.
5. Amended tax disclosure statement. If a corporation files an amended tax return, 
the corporation shall file a revised statement under this section within 60 calendar days 
after the amended return is filed. If a corporation's tax liability for a tax year is changed as 
the result of an uncontested audit adjustment or final determination by the Department of 
Administrative and Financial Services, Bureau of Revenue Services; the Maine Board of 
Tax Appeals; or Superior Court as provided for in Title 36, sections 151 and 151-D, the 
corporation shall file a revised statement under this section within 60 calendar days of the 
final determination.
6. Public access. A statement required under this section is a public record. The 
Department of Administrative and Financial Services, Bureau of Revenue Services shall, 
no sooner than the first day of the 3rd calendar year that follows the tax year applicable to 
the tax disclosure statement required under subsection 1, make all information contained 
in the statement available to the public on an ongoing basis in the form of a searchable 
database accessible through the Internet. The Bureau of Revenue Services shall adopt rules 
to implement this subsection.
7. Compliance. The chief operating officer of a corporation shall attest in writing to 
the accuracy of the statements required under this section. The Department of 
Administrative and Financial Services, Bureau of Revenue Services shall audit a 
corporation's tax disclosure statement under the normal procedures applicable to corporate 
income tax return audits. The Bureau of Revenue Services shall adopt rules for oversight 
and penalties for violations of this section. The Bureau of Revenue Services shall publish 
on the bureau's publicly accessible website the name of and penalty imposed upon a 
corporation subject to a penalty for failing to file the required statement or filing an 
inaccurate statement.
8. Rules. Rules adopted pursuant to this section are major substantive rules as defined 
in Title 5, chapter 375, subchapter 2-A.
Sec. 2.  Application. This Act applies to tax years beginning on or after January 1, 
2024.
SUMMARY
This bill requires a corporation that files a tax return with the State to file a tax 
disclosure statement with the Department of Administrative and Financial Services, Bureau 
of Revenue Services. It requires the bureau to adopt major substantive rules for the 
procedures to provide public access to the tax disclosure statements at least 3 calendar years 
following the tax year of the filing and to adopt major substantive rules for oversight and 
penalties for failing to file or filing an inaccurate tax disclosure statement. It permits a 
corporation that files a tax disclosure statement to submit supplemental information that 
could facilitate proper interpretation of the information included in the tax disclosure 
statement. It requires a corporation that files an amended tax return or with a tax liability 
that is changed as the result of an uncontested audit adjustment or final determination by 
the bureau, the Maine Board of Tax Appeals or Superior Court to file a revised tax 
disclosure statement within 60 calendar days of filing the amended return or the final 
determination. It requires the bureau to make the tax disclosure statement available to the 
public on an ongoing basis in the form of a searchable database accessible through the 
Internet. It requires the chief operating officer of a corporation to attest in writing to the 
accuracy of the tax disclosure statement. It requires the bureau to audit a corporation's tax 
disclosure. It requires the bureau to publish the name of and penalty imposed upon a 
corporation subject to a penalty for failing to file or filing an inaccurate tax disclosure 
statement.