Sec. 51. 36 MRSA §5228, sub-§9, as enacted by PL 1985, c. 691, §§35 and 48, is amended to read:

9. Individual underpayment of 4th installment. If, on or before January 31st of the following taxable year, an individual, not including a corporation, files a return and pays in full the individual's tax liability for the taxable year of the return, then no penalty may be imposed with respect to any underpayment of the 4th required installment for the year.

Sec. 52. 36 MRSA §5255-B, as repealed and replaced by PL 1987, c. 769, Pt. A, §161, is amended to read:

§5255-B. Certain items of income under the United States

Internal Revenue Code

Any person maintaining an office or transacting business within this State and who is required to deduct and withhold a tax on items of income under the Code, other than wages subject to withholding as provided in section 5250 or sales of real estate subject to withholding as provided in section 5250-A, shall deduct and withhold from such items to the extent they constitute income which that is not excluded from taxation under Maine law, a tax equal to 5% thereof of the income, unless withholding pursuant to the Code is based on other than a flat rate amount. In that event, the State's withholding procedure should estimate taxable income using the same approach to exemptions as the Code and the amount of tax to be withheld should be calculated in accordance with withholding methods prescribed pursuant to section 5250.

Sec. 53. 36 MRSA §6201, sub-§9, as amended by PL 1993, c. 395, §28, is further amended to read:

9. Income. "Income" means the sum of Maine adjusted gross income determined in accordance with Part 8, the amount of capital gains excluded from adjusted gross income, the absolute value of the amount of trade or business loss, net operating loss