reglab/statecodes huggingface dataset:
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 325 - SALES TO TRIBES, TRIBAL MEMBERS, AND TRIBAL ENTITIES › Section 125-325-03 - Qualification of tribal entities

Current through 2024-29, July 17, 2024
A business entity that believes it is entitled to the tax
				  exemption for tribal entities under
				  36 M.R.S.
				  §1760(114) may submit
				  an application (Qualified Tribal Entity Application -APP-170) to Maine Revenue
				  Services for a certificate of qualification. The certificate of qualification
				  identifies to retailers that the tribal entity meets the definition of "tribal
				  entity" as found in
				  36 M.R.S.
				  §111(8). The applicant
				  must provide the information and any required documentation specified on the
				  application form (Qualified Tribal Entity Application - APP-170).
A.
Business entities wholly owned by
				tribes, tribal members, or combination thereof.
For purposes of
				determining the ownership of a business entity, a married couple, of which at
				least one spouse is a tribal member, is treated as one tribal member,
				regardless of which spouse owns the entity.
A business entity that is wholly owned by a tribe, tribal
				  members, or a combination thereof would need to provide documentation that
				  would demonstrate how the entity is organized, including such documentation as
				  articles of incorporation, a constitution, by-laws, or Tribal Council certified
				  resolution.
For a business entity to qualify as a "tribal entity," no
				  persons may hold an ownership interest other than tribes or tribal members.
				  "Tribal member" includes a married couple where at least one spouse is a tribal
				  member, regardless of which spouse owns the entity.
B.
Business entity ownership interests
				held in aggregate by the tribes.
To qualify as a "tribal entity," a
				business entity in which at least 75% of the ownership interest is held in
				aggregate by a tribe or tribes, must be controlled and managed by a tribe or
				tribes:
1. Consistent with the requirements of
				13 C.F.R. §
											124.109(c)(4)
				(2022);
2. As determined by the SBA
				or the Assessor as consistent with
				13 C.F.R. §
											124.109(c)(4)(i)(A) (2022);
				or
3. As determined by the SBA as
				consistent with 13 C.F.R.
				§
											124.109(c)(4)(i)(B)
				(2022).
In addition to documentation that would demonstrate how the
				  business entity is organized and managed, the business entity would also need
				  to provide Maine Revenue Services, along with their exemption application
				  (Qualified Tribal Entity Application - APP-170), a copy of the business
				  entity's determination of control and/or management as made by the SBA, or a
				  written management development plan, if applicable.
Upon determination that the business entity meets the
				  definition of "tribal entity" as found in
				  36 M.R.S.
				  §111(8), Maine Revenue
				  Services will issue a certificate of qualification to the tribal
				  entity.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 325 - SALES TO TRIBES, TRIBAL MEMBERS, AND TRIBAL ENTITIES › Section 125-325-04 - Sales to qualified tribal entities

Current through 2024-29, July 17, 2024
Sales to qualified tribal entities meeting the requirements
				  in this rule shall be exempt from tax, provided that the sale is sourced to a
				  location on tribal land, and that the property or service purchased is not used
				  by the purchaser, including any lessee, primarily outside of tribal land for
				  the first year after the property or service has been placed in service by the
				  purchaser.
				  36 M.R.S.
				  §1760(114).
The qualified tribal entity must present a copy of its
				  certificate of qualification to the retailer at the time it purchases the
				  property or services that it expects will be used on tribal land and where the
				  sale is sourced to a location on tribal land along with a completed affidavit
				  (Affidavit of Exemption for Tangible Personal Property or Taxable Services Sold
				  to Tribal Member or Tribal Entity - ST-A-133). A separate affidavit is not
				  required for each individual sale.
The retailer must retain a copy of the qualified tribal
				  entity's certificate and affidavit within their customer files. The burden of
				  proving a sale is to a qualified tribal entity is on the person making the
				  sale. The retailer is relieved of this burden of proof if the retailer
				  satisfies the provisions in MRS Rule
				  18-125, Chapter 302, "Sales to
				  Governmental Agencies and Exempt Organizations."
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 325 - SALES TO TRIBES, TRIBAL MEMBERS, AND TRIBAL ENTITIES › Section 125-325-05 - Sourcing

Current through 2024-29, July 17, 2024
A.
Generally.
A transaction
				shall be sourced using the sourcing requirements in
				36 M.R.S.
				§
										1819.
B.
Taking receipt of property and
				services.
A sale of tangible personal property or a taxable service is
				sourced as follows. "Receive" and "receipt" do not include possession by a
				shipping company on behalf of the purchaser.
1. A sale of tangible personal property is
				sourced to tribal land when the tribal member or qualified tribal entity takes
				possession of the tangible personal property on a location on tribal
				land.
2. A sale of a taxable
				service is sourced to tribal land when the tribal member or qualified tribal
				entity makes first use of the service on a location on tribal land.
3. A sale of a product transferred
				electronically is sourced to tribal land when the tribal member or qualified
				tribal entity takes possession or makes first use of the product transferred
				electronically on a location on tribal land, whichever occurs first.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 325 - SALES TO TRIBES, TRIBAL MEMBERS, AND TRIBAL ENTITIES › Section 125-325-06 - Use test

Current through 2024-29, July 17, 2024
A.
Primarily
				test
. Tangible personal property or service is used by the purchaser
				primarily outside of tribal land when the number of days of use outside of
				tribal land, divided by the total number of days of use (days of use on tribal
				land plus days of use outside of tribal land), is more than 50% for the first
				year after placing into service.
B.
Payment of tax.
If the property or service does not qualify for
				the exemption because it was used primarily outside of tribal land during the
				first year following the property or service being placed in service, the
				purchaser is liable for use tax plus all accrued interest. The use tax due is
				based on the original purchase price of the property or service. The purchaser
				must report and pay use tax directly to Maine Revenue Services. Payment of the
				use tax should be accompanied by a letter of explanation.
C.
Adequate records.
Purchases
				by tribal members and tribal entities who are claiming exemption under
				36 M.R.S.
				§1760(113), (114),
				respectively, must maintain adequate records for six years documenting that the
				purchases of property or services are exempt.
See
36 M.R.S.
				§135. An example of an adequate record
				would be a log maintained by a qualified tribal entity accounting for all use
				of a vehicle by the tribal entity for a period of one year beginning from the
				date that the vehicle was purchased and placed into service, documenting that
				the vehicle was used on tribal lands and not used primarily outside of tribal
				land.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 325 - SALES TO TRIBES, TRIBAL MEMBERS, AND TRIBAL ENTITIES › Section 125-325-07 - Sales of vehicles and leases of automobiles for the period of one year or more

Current through 2024-29, July 17, 2024
A.
Generally.
For the purposes of this rule, "vehicle" has the same
				definition as found in
				36 M.R.S.
				§1752(7-A).
B.
Sales of vehicles and leases of
				automobiles for the period of one year or more to tribal members.
1.
Affidavit; registration.
The
				tribal member shall complete the Affidavit of Exemption for a Vehicle Sold to a
				Tribal Member (ST-A-129, for retail sales, and ST-A-131 for casual sales),
				indicating delivery of the vehicle to a location on tribal land, to
				appropriately document the sale or lease as exempt. The person purchasing the
				vehicle or entering a lease of the automobile for the period of one year or
				more from a vehicle dealer must provide a copy of the completed affidavit to
				the vehicle dealer at the time of purchasing the vehicle or entering into the
				lease of the automobile for the period of one year or more. In the case of a
				casual sale, the person registering the vehicle must provide a copy of the
				completed affidavit at the time of the vehicle's registration.
2.
Rebuttable presumption for tribal
				members.
When the sale of a vehicle or lease of an automobile for the
				period of one year or more to a tribal member is exempt due to the delivery of
				the vehicle to a location on tribal land, and the address on the vehicle's
				registration is also a location on tribal land, there is a rebuttable
				presumption that the person purchasing the vehicle or entering into the lease
				of the automobile for the period of one year or more uses the vehicle on tribal
				land and not primarily outside tribal land during the first year after placing
				into service. For tribal members claiming this exemption for the purchase of
				vehicles or the lease of automobiles for the period of one year or more, the
				registration of that vehicle satisfies the record-keeping requirements
				discussed in Section .06(C), above.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 325 - SALES TO TRIBES, TRIBAL MEMBERS, AND TRIBAL ENTITIES › Section 125-325-08 - Reporting of taxable sales by retailers located on tribal land

Current through 2024-29, July 17, 2024
A.
Generally.
36 M.R.S.
				§1815(2) requires the
				Assessor to notify the State Controller and the Treasurer of State each month
				of the amount of revenue attributable to sales tax collected by retailers for
				sales occurring on tribal land in the previous month to be returned to the
				respective tribes.
B.
Sales
				occurring on tribal land.
A sale occurs on tribal land for purposes of
				36 M.R.S.
				§1815(2) if:
1. The business location of the retailer from
				which the purchase is made is on Passamaquoddy Indian territory, Penobscot
				Indian territory, or Houlton Band Trust Land, respectively; and
2. The tangible personal property or taxable
				service is received by the purchaser also on Passamaquoddy Indian territory,
				Penobscot Indian territory, or Houlton Band Trust Land,
				respectively.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 401 - SERVICE PROVIDER TAX - RETURN AND PAYMENT OF TAX › Section 125-401-1 - REPORTING FREQUENCY

Current through 2024-29, July 17, 2024
1.
Generally; returns filed monthly.
Except as otherwise provided by this
				Rule, every service provider must file monthly tax returns. The State Tax
				Assessor will periodically review the status of taxpayer accounts and notify
				service providers whose filing frequency has been changed pursuant to this
				Rule. Upon application to the assessor, a taxpayer may be authorized to file
				returns more frequently than this Rule requires. For the purposes of this rule,
				"service provider" means an individual or business entity registered with Maine
				Revenue Services for the collection and payment of the Service Provider Tax
				pursuant to Title 36, Chapter 358.
2.
Quarterly returns.
Every
				service provider whose average tax liability is at least $100 per month but
				less than $600 per month must file four returns each year. The reporting
				periods are January through March; April through June; July through September;
				and October through December. The due date for filing the return and paying the
				tax is the fifteenth day of the month following the end of each reporting
				period.
3.
Biannual returns.
Every service provider whose average tax liability is at least $50 per
				year but less than $100 per month must file two returns each year. The
				reporting periods are January through June and July through December. The due
				dates for filing the returns and paying the tax are the fifteenth day of the
				month following the end of each reporting period (July 15th and January
				15th).
4.
Annual
				return.
Every service provider whose average annual tax liability is
				less than $50 must file one return each year. The reporting period is the
				calendar year, and the due date for filing the return and paying the tax is the
				fifteenth day of the month following the end of the reporting period (January
				15th).
5.
Exceptions.
The assessor may temporarily require service providers to file using unusual or
				more frequent reporting periods in order to administer substantial changes in
				the service provider tax law, such as rate changes.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 401 - SERVICE PROVIDER TAX - RETURN AND PAYMENT OF TAX › Section 125-401-2 - EXTENSION OF TIME FOR FILING

Current through 2024-29, July 17, 2024
Upon application to the State Tax Assessor, the time for
				  filing returns may be extended for 30 days for good cause. The extension
				  remains in effect until revoked in writing by the State Tax Assessor. The
				  extension does not extend the time for paying the tax.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 401 - SERVICE PROVIDER TAX - RETURN AND PAYMENT OF TAX › Section 125-401-3 - BASIS OF ACCOUNTING

Current through 2024-29, July 17, 2024
Generally, service providers are required to file tax returns
				  on an accrual basis. However, a service provider that properly files its
				  federal income tax returns on a cash basis may elect to file its service
				  provider tax returns on a cash basis.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 401 - SERVICE PROVIDER TAX - RETURN AND PAYMENT OF TAX › Section 125-401-4 - CONSOLIDATED FILING

Current through 2024-29, July 17, 2024
Upon application to the State Tax Assessor, a service
				  provider that makes sales at more than one place of business may be authorized
				  to file a single consolidated return reporting the total amount of sales made
				  at all of the locations. The return must include a schedule showing a breakdown
				  of taxable sales made at each location.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 501 - REPORTING UNDER GASOLINE TAX ACT › Section 125-501-01 - Reporting

Current through 2024-29, July 17, 2024
A. Gasoline tax reports must be filed by
				every licensed distributor even though no purchases, or sales or use of
				gasoline were made during the month.
B. The basis of reporting for Maine Gasoline
				Tax purposes is the actual measured gallonage received and sold, distributed or
				used. Reports made on basis of adjustments for temperatures shall not be
				accepted.
(1) Receipts at marketing locations
				in this State from outside this State shall be measured gallons received in the
				distributors bulk storage tanks.
(2) Receipts at marketing locations in this
				State from sources within this State shall be the measured gallons invoiced by
				the supplying distributor.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 501 - REPORTING UNDER GASOLINE TAX ACT › Section 125-501-02 - Transfers on consignment

Current through 2024-29, July 17, 2024
Where gasoline is delivered by a distributor on consignment
				  basis to a consumer or to a retail outlet, whether such retail outlet is wholly
				  owned by the distributor or not, it shall be considered to have been
				  "distributed" within the meaning of the Gasoline Tax Act.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 501 - REPORTING UNDER GASOLINE TAX ACT › Section 125-501-03 - Allowances for losses due to fire, accident or some unavoidable calamity

Current through 2024-29, July 17, 2024
A licensed distributor must report immediately to the Bureau
				  of Taxation on losses sustained by him through fire, accident, or unavoidable
				  calamity, in order that the Bureau nay make such investigations as it may deem
				  necessary. In such a case, the distributor should not delay reporting such loss
				  until the filing of his next monthly report. Failure to report such losses
				  promptly may result in the refusal of the Bureau to allow credit on account of
				  tax liability with respect to such losses.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-01 - Definitions

Current through 2024-29, July 17, 2024
The following definitions apply with respect to this rule and
				  36 M.R.S., Chapter 575, except as the context may otherwise require.
A.
Adjusted taxable
				gifts.
"Adjusted taxable gifts" has the same meaning as in the Internal
				Revenue Code ("Code") and other applicable federal law, less taxable gifts made
				within one year prior to the date of death of the decedent.
B.
Allowable
				deductions.
"Allowable deductions" means deductions from the federal
				gross estate as authorized under the Code in calculating the federal taxable
				estate, excluding the state death tax deduction. "Allowable deductions"
				includes deductions taken by a Gap estate that would have been allowable if the
				estate had been required to file a federal estate tax return.
C.
Alternate valuation
				date.
"Alternate valuation date" means the date of valuation of an estate
				other than the date of death, as determined under the Code. In the case of an
				estate that does not incur a federal estate tax, but is taxable to Maine, the
				alternate valuation must be determined under Code §2032 as if the estate
				was taxable under federal law.
D.
Federal exclusion.
"Federal exclusion" means the applicable
				exclusion amount pursuant to the Code. The exclusion amount is the dollar value
				for which the calculated estate tax is exactly equal to the applicable unified
				credit.
E.
Federal tentative
				taxable estate.
"Federal tentative taxable estate" means the federal
				gross estate less allowable deductions, except the deduction for state
				taxes.
F.
Gap
				estate.
"Gap estate" means the estate of a decedent where the value of
				the gross estate as of the decedent's date of death or alternate valuation date
				is less than or equal to the federal exclusion amount but more than the Maine
				exclusion amount.
G.
Maine
				estate tax.
"Maine estate tax" means the amount of tax due in accordance
				with Title 36 M.R.S., Chapter 575 and this rule.
H.
Maine exclusion.
"Maine
				exclusion" means the applicable federal exclusion amount for Maine estate tax
				purpose. The exclusion amount is the dollar value for which the calculated
				estate tax is exactly equal to the applicable unified credit under Title 36
				M.R.S., Chapter 575. For estates of decedents dying after December 31, 2012,
				the Maine exclusion amount is $2,000,000.
I.
Pro forma federal Form
				706.
"Pro forma federal Form 706" means federal Form 706 prepared as if
				it were required to be filed federally under the Code.
J.
Surviving spouse.
"Surviving
				spouse" means an individual who outlived the decedent and who was married,
				according to the laws of Maine, to the decedent at the time of the decedent's
				death.
K.
Unified
				credit.
"Unified credit" has the same meaning as in Code §2010 as of
				December 31, 2000. The termination provision contained in Code §2210 must
				be disregarded.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-02 - Federal laws

Current through 2024-29, July 17, 2024
A.
Generally
.Maine Revenue Services generally looks to federal law,
				including statutes, regulations, statements, policy, and related case law for
				guidance when interpreting analogous provisions of Maine estate tax law.
				However, the state death tax deduction contained in the Code §2058 must be
				disregarded. The termination provision contained in the Code §2210 must be
				disregarded. The Maine estate tax determined under 36 M.R.S., Chapter 575, for
				an estate of a decedent dying after December 31, 2009, but before January 1,
				2013, must be determined in accordance with the law applicable to decedents
				dying during calendar year 2009.
B.
Final federal determination.
Except as noted below, when the
				federal government issues a final determination as to the inclusion in the
				federal gross estate of any item, the amount claimed as a deduction from the
				gross estate, or the federal credit for estates of decedents dying before
				January 1, 2003, that issue is finally determined for Maine estate tax
				purposes. For estates of decedents dying on or after January 1, 2003, but
				before July 1, 2008, when the federal government issues a final determination
				as to the inclusion in the federal gross estate of any item or the amount
				claimed as a deduction from the gross estate, that issue is finally determined
				for Maine estate tax purposes. For estates of decedents dying on or after July
				1, 2008, but before July 1, 2009, the State Tax Assessor ("Assessor") is not
				bound by a final federal determination on the above issues and may determine
				the issue for Maine estate tax purposes within two years of the date the return
				or amended return was filed or was due to be filed, whichever is later. For
				estates of decedents dying on or after July 1, 2009, the Assessor is not bound
				by a final federal determination on the inclusion in the federal gross estate
				of any item of property or interest and the allowance of any item of deduction
				from the federal gross estate and may determine the issue for Maine estate tax
				purposes within one year of the date the return or amended return was filed or
				was due to be filed, whichever is later.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-03 - Filing requirements

Current through 2024-29, July 17, 2024
A.
Forms
1.
Form
				706ME.
Where the sum of the federal gross estate and adjusted
				  taxable gifts exceeds the Maine exclusion or if the estate contains Maine
				  elective property or Maine qualified terminable interest property and where the
				  estate includes property sourced to Maine, a personal representative must file
				  a Maine Estate Tax return (Form 706ME) with required attachments within nine
				  months of the decedent's date of death, unless an extension of time to file has
				  been granted. If the estate is required to file a federal Form 706, a copy of
				  that form, including all schedules and attachments (including Worksheet 706C)
				  must be filed with Form 706ME. If the estate is not required to file federal
				  Form 706, a pro forma federal Form 706 must be attached to Form 706ME and must
				  include all of the information, schedules and attachments that would be
				  required if a federal return was required to be filed.
2.
Form 706ME-EZ.
Where the
				estate includes property sourced to Maine and Form 706 ME is not required, the
				personal representative may file Form 706ME-EZ at any time after date of death.
				The purpose of the form, filed along with a certificate of discharge of estate
				tax lien, is to request the release of the automatic statutory estate tax lien
				on real or tangible personal property for estates with no tax
				liability.
3.
Certificates of
				Discharge of Estate Tax Lien.
A personal representative must file a
				Certificate of Discharge of Estate Tax Lien to request release of the automatic
				estate tax lien on Maine real property. A personal representative must file a
				Certificate of Discharge of Estate Tax Lien on Tangible Personal Property to
				request release of the automatic estate tax lien on personal property sourced
				to Maine.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-04 - Administrative expenses

Current through 2024-29, July 17, 2024
If a gapestate included administrative expenses in the
				  calculation of the pro forma federal Form 706, and those expenses are also
				  included in the estate's federal fiduciary return (Form 1041) for calculating
				  the income tax for the estate, the estate must make an addition modification on
				  the Maine fiduciary income tax return (Form 1041ME). The addition modification
				  mustequal the administrative expenses deducted on the federal Form 1041 that
				  are also deducted on the pro forma federal Form 706.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-05 - Gifts

Current through 2024-29, July 17, 2024
Generally, adjusted taxable gifts are added to the federal
				  gross estate and Maine elective property in order to determine whether the
				  estate has exceeded the Maine exclusion. The Assessor will disregard a gift and
				  treat the decedent as the owner of the property where a gift has not been
				  completed, incidents of ownership were retained by the decedent, or where the
				  gift otherwise would be disregarded under the Code, federal regulations, or
				  policy. In addition, where the decedent, within one year prior to the date of
				  death, made taxable gifts as defined under the Code, the value of those taxable
				  gifts when made on or after January 1, 2008, will be included in the decedent's
				  estate in accordance with
				   36
				  M.R.S.§4062.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-06 - Valuation

Current through 2024-29, July 17, 2024
A.
Determination.
The Assessor
				may, for Maine estate tax purposes, independently determine the value of the
				assets of an estate in accordance with the Code, federal regulations and policy
				even if there is a final federal determination with respect to the valuation of
				the assets of the estate. Generally, the value of the gross estate of the
				decedent is determined by the fair market value of all the decedent's assets at
				the time of death. The fair market value means the price at which the property
				would change hands between a willing buyer and a willing seller, neither being
				under any compulsion and both having reasonable knowledge of the relevant
				facts.
B.
Alternate valuation
				date.
The personal representative of an estate may elect to value the
				estate using the alternate valuation date as determined under Code §2032.
				The Assessor may, for Maine estate tax purposes, independently determine the
				value of the assets of an estate on the alternate valuation date in accordance
				with the Code and federal regulations and policy even if there is a final
				federal determination with respect to the valuation of the assets of the
				estate.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-07 - Sourcing property to Maine

Current through 2024-29, July 17, 2024
A.
Property
1.
Real
				property.
Real property is sourced to the taxing jurisdiction in which it
				is physically located, regardless of whether the decedent was a Maine resident
				or nonresident on the date of the decedent's death.
2.
Tangible personal
				property.
Tangible personal property is sourced to the taxing
				jurisdiction in which it was situated at the date of the decedent's death. If
				an item of tangible personal property is temporarily situated in a taxing
				jurisdiction for repair or other temporary purpose, that item will be sourced
				to the taxing jurisdiction to which it is intended to be located after such
				repair or purpose.
3.
Intangible property.
Intangible property is sourced to the taxing
				jurisdiction of the decedent's domicile as of the date of the decedent's death.
				Intangible property includes, but is not limited to, bank accounts, stocks,
				bonds and other cash accounts, except as provided by .07(C) and (D)
				below.
4.
Gifts.
The
				value of gifts made by the decedent within one year prior to death included in
				the decedent's estate by 36 M.R.S.§4062(2)is sourced consistent with
				.07(A) (1), (2), and (3) above.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-08 - Qualified terminable interest and Maine elective property

Current through 2024-29, July 17, 2024
A.
Qualified terminable interest
				property.
Beginning with deaths in 2005, an estate of a decedent with a
				surviving spouse may elect an estate deduction for assets that are eligible to
				be treated as qualified terminable interest property ("QTIP") under Code
				§2056(b)(7).The maximum allowable Maine QTIP deduction is the difference
				between the decedent's federal exclusion amount or, if no federal return is
				required, the pro forma federal exclusion amount and the Maine exclusion
				amount. The Maine QTIP may not include property designated as federal QTIP
				property, nor may it include property included in adjusted taxable gifts. Maine
				QTIP property is tax-deferred for Maine estate tax purposes until the death of
				the surviving spouse. At the death of the surviving spouse, the remaining Maine
				QTIP property is revalued and is identified as Maine elective property which
				must be included in the surviving spouse's taxable estate. For estates of
				decedents dying on or after January 1, 2010 but before January 1, 2011, the
				total allowable Maine QTIP under Maine law is $2.5 million. This represents the
				difference between the Maine estate tax exclusion amount of $1,000,000 and the
				federal estate tax exclusion amount of $3.5 million as of 2009. For estates of
				decedents dying on or after January 1, 2011, the total allowable Maine QTIP
				under Maine law is calculated based on the federal exclusion amount as of the
				decedent's actual date of death.
B.
Maine elective property.
If a decedent was predeceased by a spouse
				whose estate elected a deduction for a Maine QTIP, the remaining property in
				the Maine QTIP must be included in the value of the estate of the surviving
				spouse as Maine elective property. The value of the Maine elective property is
				measured at the death of the surviving spouse and is added to the federal
				tentative taxable estate of the surviving spouse to calculate the Maine taxable
				estate. If the estate of the surviving spouse is based on the alternate
				valuation date, then the same alternate valuation date is to be used for
				valuation of the Maine elective property.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-09 - Qualified domestic trusts

Current through 2024-29, July 17, 2024
If a federal Form 706-QDT is required, the estate must also
				  file an amended Maine estate tax return, showing the taxable distribution as an
				  increase to the predeceased spouse's estate.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-10 - Liability

Current through 2024-29, July 17, 2024
A personal representative, trustee, grantee, donee, or other
				  beneficial recipient of assets of an estate remains personally liable for the
				  estate taxes until those taxes are paid. A personal representative may request
				  a discharge of personal liability by filing a Certificate of Discharge of
				  Personal Representative Liability, and upon payment of any estate tax due, may
				  receive the discharge from liability as to any estate tax subsequently
				  determined to be due. The estate, trustee, grantee, donee, or other beneficial
				  recipient of assets of the estate remains liable for any Maine estate tax
				  subsequently determined to be due.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-11 - Liens and lien releases

Current through 2024-29, July 17, 2024
Except as otherwise provided by law, an automatic lien for
				  estate taxes, interest and penalties attaches to all Maine property (real and
				  personal) owned by a decedent at death. The lien does not attach to any
				  property passing by right of survivorship to a surviving joint tenant who was
				  the decedent's spouse on the decedent's date of death. The lien continues until
				  it is released by the State Tax Assessor, except that:
A. The lien is automatically released by
				operation of law when the personal representative of the estate, the trustee of
				a trust or surviving joint tenant of the property, each acting in the capacity
				of a fiduciary of the estate, transfers the property for value as defined
				pursuant to 36 M.R.S., Chapter 575. However, the lien continues to attach to
				any property that is transferred for less than its value or when transferred by
				any other party.
B. The lien is
				automatically released by operation of law ten years after the decedent's date
				of death.
When a personal representative of an estate files a completed
				  Certificate of Discharge of Estate Tax Lien, the Assessor will release the lien
				  upon a showing by the estate that all taxes, interest, and penalties have been
				  paid or a determination by Maine Revenue Services that no tax is
				  due.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 601 - ESTATE TAX › Section 125-601-12 - Application date

Current through 2024-29, July 17, 2024
This Rule applies to estates of decedents dying on or after
				  January 1, 2011. This Rule does not apply to estates of decedents dying on or
				  after January 1, 2013.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.01 - DEFINITIONS

Current through 2024-29, July 17, 2024
The following definitions apply with respect to this rule and
				  36 M.R.S., Chapter 577, except as the context may otherwise require.
A.
Gap estate.
"Gap estate"
				means the estate of a decedent where the value of the gross estate as of the
				decedent's date of death or alternate valuation date is less than or equal to
				the federal exclusion amount pursuant to the Internal Revenue Code ( "Code")
				§ 2010, but more than the Maine exclusion amount under  36 M.R.S. §
										4102(5).
B.
Pass-through
				entity.
"Pass-through entity" means a trust, a corporation that for the
				applicable tax year is treated as an S corporation under the Code or a general
				partnership, limited partnership, limited liability partnership, limited
				liability company or similar entity, that for the applicable tax year is not
				taxed as a C corporation for federal tax purposes.
C.
Pro forma federal Form 706.
"Pro forma federal Form 706" means federal Form 706 prepared as if it were
				required to be filed federally under the Code.
D.
Surviving spouse.
"Surviving
				spouse" means an individual who outlived the decedent and who was married,
				according to the laws of Maine, to the decedent at the time of the decedent's
				death.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.02 - FEDERAL LAWS

Current through 2024-29, July 17, 2024
Unless specifically provided by Maine law or regulations,
				  Maine Revenue Services generally looks to federal law, including statutes,
				  regulations, statements, policy, and related case law for guidance when
				  interpreting analogous provisions of Maine estate tax law. However, the state
				  death tax deduction contained in Code § 2058 must be
				  disregarded.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.03 - FILING REQUIREMENTS

Current through 2024-29, July 17, 2024
A.
Forms,
				statements and certificates
1.
Form 706ME.
If an estate is required to file a Maine estate tax
				return (Form 706ME), the personal representative must file the return with
				required attachments within nine months of the decedent's date of death, unless
				an extension of time to file has been granted by Maine Revenue Services. If the
				estate is not required to file federal Form 706, but is required to file Form
				706ME, a pro forma federal Form 706 must be attached to Form 706ME and must
				include all of the information, schedules and attachments that would be
				required if a federal Form 706 was required to be filed. A personal
				representative must file a Form 706ME with a Certificate of Discharge of Estate
				Tax Lien to request release of the statutory Maine estate tax lien under  36
				M.R.S. §4112 on Maine real property or tangible personal
				property.
2.
Statement
				700-SOV.
Where an estate is not required to file a Maine estate tax
				return, the personal representative may submit statement 700-SOV after the date
				of death and request, along with a Certificate of Discharge of Estate Tax Lien,
				the release of the statutory Maine estate tax lien under 36 M.R.S. § 4112
				on real or tangible personal property for estates with no tax liability. This
				statement does not constitute a return and no Maine estate tax closing letter
				will be issued.
3.
Certificates of Discharge of Estate Tax Lien.
A personal
				representative must file a Certificate of Discharge of Estate Tax Lien to
				request release of the statutory Maine estate tax lien on Maine real property.
				A personal representative must file a Certificate of Discharge of Estate Tax
				Lien on tangible personal property to request release of the statutory Maine
				estate tax lien under  36 M.R.S. §4112 on personal property sourced to
				Maine.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.04 - ADMINISTATIVE EXPENSES

Current through 2024-29, July 17, 2024
If a gap estate included administrative expenses in the
				  calculation of the pro forma federal Form 706, and those expenses are also
				  deducted on the estate's federal fiduciary income tax return (Form 1041), the
				  estate must make an addition modification on the Maine fiduciary income tax
				  return (Form 1041ME). The addition modification must equal the administrative
				  expenses deducted on federal Form 1041 that are also deducted on the pro forma
				  federal Form 706.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.05 - GIFTS

Current through 2024-29, July 17, 2024
The Assessor will disregard a gift and treat the decedent as
				  the owner of the property where a gift has not been completed, incidents of
				  ownership were retained by the decedent or where the gift otherwise would be
				  disregarded under the Code, federal regulations, or IRS procedure or policy. In
				  addition, where the decedent, within one year prior to the date of death, made
				  taxable gifts as defined under the Code, the value of those taxable gifts will
				  be included in the decedent's estate in accordance with  36 M.R.S. §4102.
				  The value of taxable gifts is determined by the Assessor in accordance with the
				  Code.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.06 - VALUATION

Current through 2024-29, July 17, 2024
A.
Determination.
For Maine
				estate tax purposes, the value with respect to an estate or to property
				included in an estate, including Maine qualified terminable interest property
				("QTIP"), is the value as determined by the Assessor in accordance with the
				Code, federal regulations and policy even if there is a final federal
				determination with respect to the valuation of the assets of the estate.
				Generally under federal law and thus, Maine law, the value of the federal gross
				estate of the decedent and property in the gross estate is determined by the
				fair market value of all the decedent's assets at the time of death. The fair
				market value means the price at which the property would change hands between a
				willing buyer and a willing seller, neither being under any compulsion to buy
				or to sell and both having reasonable knowledge of the relevant
				facts.
B.
Alternate valuation
				date.
The personal representative of an estate who has elected to value
				the estate for federal purposes using the alternate valuation date as
				determined under Code § 2032 must use the same valuation date for Maine
				estate tax. An estate may not elect alternate valuation for Maine purposes and
				date of death valuation for federal tax purposes. A Maine gap estate that,
				notwithstanding the federal exclusion amount, would have otherwise qualified
				for the election under federal law may elect alternate valuation by checking
				the appropriate box on the pro forma federal Form 706. Once made, the election
				to use alternate valuation may not be revoked. The election may be made on a
				late-filed return, provided it is filed not later than one year after the due
				date including extensions actually granted.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.07 - SOURCING

Current through 2024-29, July 17, 2024
A.
Real property.
Real property
				is sourced to the taxing jurisdiction in which it is physically located,
				regardless of whether the decedent was a Maine resident or nonresident on the
				date of the decedent's death.
B.
Tangible personal property.
Tangible personal property is sourced
				to the taxing jurisdiction in which it was situated at the date of the
				decedent's death. If an item of tangible personal property is temporarily
				situated in a taxing jurisdiction for repair or other temporary purpose, that
				item will be sourced to the taxing jurisdiction to which it is intended to be
				located after such repair or purpose.
C.
Intangible property.
Intangible property is sourced to the taxing jurisdiction of the decedent's
				domicile as of the date of the decedent's death. Intangible property includes,
				but is not limited to, bank accounts, stocks, bonds, brokerage and other cash
				accounts, except as otherwise provided by this rule.
D.
Gifts.
Taxable gifts made by
				the decedent within one year prior to death included in the decedent's estate
				by  36 M.R.S. §4102(7) are sourced consistent with .07(A), (B) and (C)
				above and (E) below on the date the gift was made.
E.
Real or tangible personal property
				owned by a pass-through entity in the estate of a nonresident.
For
				estates of nonresidents, when real or tangible personal property is owned by a
				pass-through entity, the entity must be disregarded and the property must be
				treated as personally owned by the decedent where the entity does not actively
				carry on a business for the purpose of profit and gain; the ownership of the
				property in the entity was not for a valid business purpose; or the property
				was acquired by other than a bona fide sale for full and adequate consideration
				and the decedent retained a power with respect to or interest in the property
				that would bring the real or tangible personal property located in this State
				within the decedent's adjusted federal gross estate. The Assessor will
				determine whether the transfer was for a valid business purpose by looking at
				the economic realities of the transfer. Tax avoidance is not considered a valid
				business purpose.