| | | N.__Interest or dividends on obligations or securities of | | this State and its political subdivisions and authorities to | | the extent included in federal adjusted gross income; and |
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| | | O.__An amount equal to any income derived by military | | retirees from a military retirement plan.__For purposes of | | this paragraph, "military retiree" means any person who has | | retired from the active or reserve components of the Army, | | Navy, Air Force, Marines or the Coast Guard. |
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| | | Sec. 4. Application. This Act 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; this amount is reduced by the total amount of social | | security and railroad benefits received. |
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| | | This bill removes the cap on military pension benefits, thus | | allowing them to be fully deductible from the state income tax. |
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| | | This bill also corrects a conflict created by Public Law 1999, | | chapters 708 and 731, each of which enacted a new 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 the Maine Revised Statutes, Title 36, section | | 5122, subsection 2, paragraph N. |
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