Sec. 1. 36 MRSA §5111, as amended by PL 1999, c. 731, Pt. T, §§2 to 7, is repealed.

Sec. 2. 36 MRSA §5111-A, as repealed and replaced by PL 1987, c. 819, §3, is repealed.

Sec. 3. 36 MRSA §5111-C is enacted to read:

§5111-C.__Imposition and rate of tax

1.__Resident.__A tax is imposed for each taxable year beginning on or after January 1, 2002 on the Maine taxable income of every resident individual of this State.__The amount of the tax is 5%.

2.__Additional tax.__Additionally, a tax is imposed for each taxable year beginning on or after January 1, 1989, on the Maine adjusted gross income of every nonresident individual.__The amount of the tax equals the tax computed under this section and chapter 805, as if the nonresident were a resident, multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the nonresident's entire federal adjusted gross income, as modified by section 5122.

Sec. 4. 36 MRSA §5124-A, as amended by PL 1989, c. 596, Pt. J, §7, is repealed and following enacted in its place:

§5124-A.__Standard deduction; resident

The standard deduction for resident taxpayers who are married persons filing jointly is $30,000, the standard deduction for persons filing as heads of households is $20,000 and the standard deduction for all other resident taxpayers is $10,000.

Sec. 5. 36 MRSA §5126, as amended by PL 1999, c. 401, Pt. QQQ, §1, is repealed.

Sec. 6. 36 MRSA §5160, as amended by PL 1993, c. 395, §19, is further amended to read:

§5160. Imposition of tax

The tax is imposed, at the rates rate provided by section 5111 5111-C for resident individuals, upon the taxable income of estates and trusts. The tax must be paid by the fiduciary.