An Act to Abolish the
Maine Legislature, Session 132, LD 0671
Committee Amendment CA_A_H299 (House)

COMMITTEE AMENDMENT "A" to H.P. 439, L.D. 671, "An Act to Abolish the 
Maine Income Tax and Establish a Zero-based Budget" 
Amend the bill by striking out the title and substituting the following: 
'An Act to Abolish the Maine Individual Income Tax and Establish a Zero-based 
Budget' 
Amend the bill in Part A in section 1 inc. 843 in the 2nd line (page 1, line 5 in L.D.) 
by striking out the following: "INCOME TAX ELIMINATION" and inserting the 
following: 'INDIVIDUAL INCOME TAX ELIMINATION' 
Amend the bill in Pait A in section 1 inc. 843 in §5501 in the first line (page 1, line 6 
in L.D.) by inserting after the following: "or' the following: 'individual' 
Amend the bill in Part A in section 1 inc. 843 in §5501 in the first indented paragraph 
in the first line (page 1, line 7 in L.D.) by striking out the following: "no tax may be" and 
inserting the following: 'individual income tax may not be' 
Amend the bill in Patt A in section 1 inc. 843 by insetting after §5501 the following:. 
'§5502. Individual income tax filing requirements 
For tax years beginning on or after January 1, 2026, an individual taxpayer with no tax 
liability that requires the filing of a Maine income tax return is not required to file a return 
with the State. 
§5503. Individual income tax credits 
For tax years beginning on or after January 1, 2026, tax credits may not be collected 
by individual taxpayers under this Part. Maine income tax credits made available to 
individual taxpayers under any other Part and collectible ·under this Patt may not be 
claimed.' 
Amend the bill in Part B by insetting after section 2 the following: 
'Sec. B-3. Appropriations and allocations. The following appropriations and 
allocations are made. 
COMMITTEE AMENDMENT 
·11 
COMMITTEE ~NDMENT ,4, to H.P. 439, L.D. 671 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides one-time funding for computer programming required to accommodate 
changes to the individual income tax to disallow carry-forwards of overpayments to tax 
years after 2025, to enable the system to issue refunds of payments when there are no 
returns filed for tax years beginning after 2025 and to pe1form related systems testing. 
GENERAL FUND 
2025-26 
2026-27 
All Other 
$120,700 
$0 
GENERAL FUND TOTAL 
$120,700 
$0 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section • 
number to read consecutively. 
SUMMARY 
This amendment updates the date on which the review and report of the Department of 
Administrative and Financial Services required by the bill on the provisions of the law that 
refer to Maine income tax are due. The amendment exempts taxpayers without reportable 
tax liability from filing a Maine income tax return and eliminates in~ividual Maine income 
tax credits. The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/15/25 LRL 
LD671 
LR2037(02) 
An Act to Abolish the Maine Income Tax and Establish a Zero-based Budget 
Fiscal Note for Bill as Amended by Committee Amendment'~' 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
{H~211) 
FY2025-26 
$1,435,954,700 
Projections FY 
FY 2026-27 
2027-28 
Projections FY 
2028-29 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Correctional and Judicial Impact Statements 
$2,643,204,000 
$2,714,095,000 
$2,868,594,000 
$120,700 
$0 
$0 
$0 
($1,435,834,000) 
($2,643,204,000) 
($2,714,095,000) 
($2,868,594,000) 
($59,356,000) 
($142,326,000) 
($142,215,000) 
($150,216,000) 
This bill may decrease the number of civil suits filed in the court system, The Judicial Branch may realize some minor reduction of 
workload and administrative costs associated with the minimal number of cases that will no longer be filed. Collection of filing fees 
will decrease General Fund revenue by minor amounts. 
FiscalDetail and Notes 
This bill includes a revenue decrease to the Bureau of Revenue Services within the Department of Administrative and Financial 
Services of$1,435,834,000 in fiscal year 2025-26 and $2,643,204,000 in fiscal year 2026-27 by eliminating the Maine individual 
income tax beginning January 1, 2026. The bill will also reduce Local Government Fund revenue by $59,356,000 in fiscal year 
2025-26 and $142,326,000 in fiscal year 2026-27. 
The bill also includes a one-time appropriation to the Bureau of Revenue Services within the Department of Administrative and 
Financial Services of$120,700 in fiscal year 2025-26 to fund computer programming required to accommodate changes to the 
Maine individual income tax and to perform systems testing. 
The additional costs to the executive, legislative and judicial branches of state government to meet the bills requirements to prepare 
and submit budget documents using a budget process that includes zero-based budgeting for each depa1tment and agency at least 
once every eight years are expected to be significant but cannot be determined at this time. 
LR2037(02) - Fiscal Note - Page 1 of 1