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of the tax rate tables specified in section 5111, subsections 1-B, | | 2-B and 3-B and section 5122, subsection 2, paragraph M, | | subparagraph (1). If the dollar amounts of each rate bracket, | | adjusted by application of the cost-of-living adjustment, are not | | multiples of $50, any increase must be rounded to the next lowest | | multiple of $50. If the cost-of-living adjustment for any taxable | | year is 1.000 or less, no adjustment may be made for that taxable | | year in the dollar bracket amounts of the tax rate tables. The | | assessor shall incorporate such changes into the income tax forms, | | instructions and withholding tables for the taxable year. |
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| | | Sec. 5. Application. That section of this Act that amends the Maine | | Revised Statutes, Title 36, section 5122, subsection 2, paragraph | | M applies to tax years beginning on or after January 1, 2001. |
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| | | Current law exempts from the state income tax the first $6,000 | | of income received from certain public, private and military | | pensions. |
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| | | This bill adjusts the amount of the deduction by the rate of | | inflation and makes the deduction applicable to all pension plans | | as long as the pension plan is recognized by the United States | | Internal Revenue Code. |
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| | | This bill also corrects a conflict created by Public Law 1999, | | chapters 708 and 731, each of which enacted the Maine Revised | | Statutes, Title 36, section 5122, subsection 2, paragraph M. | | This bill resolves the conflict by reallocating one of the new | | paragraphs to be Title 36, section 5122, subsection 2, paragraph | | N. |
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