| | Sec. 2. 36 MRSA §112, sub-§7-A, as amended by PL 1997, c. 526, §7, is | further amended to read: |
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| | 7-A. Taxpayer Bill of Rights. The assessor shall prepare a | statement describing in simple and nontechnical terms the rights | of a taxpayer and the obligations of the bureau during an audit. | The statement must also explain the procedures by which a | taxpayer may appeal any adverse decision of the assessor, | including the informal conference and judicial appeals. This | statement must be distributed by the bureau to any taxpayer | contacted with respect to the determination or collection of any | tax, excluding the normal mailing of tax forms. This paragraph | does not apply to criminal tax investigations conducted by the | assessor or by the Attorney General. |
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| | Sec. 3. 36 MRSA §135, sub-§1, as amended by 1995, c. 281, §4, is | further amended to read: |
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| | 1. Taxpayers. Persons subject to tax under this Title shall | maintain such records as the State Tax Assessor determines | necessary for the reasonable administration of this Title. | Records pertaining to taxes imposed by chapters 371 and 575 and | by Part 8 must be retained as long as is required by applicable | federal law and regulation. Records pertaining to the special | fuel tax user reports filed pursuant to section 3209, subsection | 2 and the International Fuel Tax Agreement pursuant to section | 3209, subsection 1-B must be retained for 4 years. Records | pertaining to all other taxes imposed by this Title must be | retained for a period of at least 6 years. The records must be | kept in such a manner as to ensure their security and | accessibility for inspection by the assessor or any designated | agent engaged in the administration of this Title. |
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| | Sec. 4. 36 MRSA §141, sub-§2, ¶C, as enacted by PL 1979, c. 378, §4, | is amended to read: |
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| C. An assessment may be made at any time with respect to a | time period for which a return has become due but has not | been filed. If any person failing to file a return fails to | produce, within a reasonable time 30 days after notice, | information which that the State Tax Assessor believes | necessary to determine tax liability for the period | involved, the State Tax Assessor may assess an estimated tax | liability based upon the best information otherwise | available. In any proceeding for the collection of tax for | the period involved, that estimate shall constitute | constitutes prima facie evidence of the tax liability. The | 30-day period provided by this paragraph is extended for up | to 90 days if the taxpayer requests an extension in writing | prior to the expiration of the 30-day period. |
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| | Sec. 5. 36 MRSA §144, sub-§1, as amended by PL 1999, c. 708, §8, is | further amended to read: |
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| | 1. Generally. A taxpayer may request a credit or refund of | any tax imposed by this Title or administered by the State Tax | Assessor within 3 years from the time the return was filed or 2 | years from the time the tax was paid, whichever period expires | later. Every claim for refund must be submitted to the State Tax | Assessor in writing and state the specific grounds upon which it | is founded and the tax period for which the refund is claimed. | The taxpayer may in writing request an informal conference | regarding the claim for refund, in which case the claim for | refund is considered a request for reconsideration of an | assessment under section 151. |
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| | Sec. 6. 36 MRSA §176-A, sub-§2, ¶E, as enacted by PL 1989, c. 880, Pt. | E, §3, is amended to read: |
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| E. The effect of a levy on salary or wages payable to or | received by a taxpayer is continuous from the date the levy | is first made until the liability out of which the levy | arose is satisfied. A Except as otherwise provided by this | paragraph, a levy on any other intangible personal property | or rights to intangible personal property remains in effect | until 6 months one year after the date that notice of levy | and demand under subsection 3, paragraph A, is served on the | person in possession of or liable to the taxpayer with | respect to intangible personal property, including property | that is first possessed or liabilities that arise after the | date of service of the notice of levy and demand; except | that a levy upon property held by a financial institution | described in subsection 3, paragraph A, only extends to | accounts in existence on the date the notice of levy and | demand is served on the financial institution, but includes | deposits made or collected in those accounts after the | notice is served. A levy on intangible personal property or | rights to intangible personal property, ownership of which | is disputed at the time the levy is issued, remains in | effect until one year after the dispute is resolved by | competent authority. |
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| | Sec. 7. 36 MRSA §176-A, sub-§3, ¶A, as enacted by PL 1989, c. 880, Pt. | E, §3, is amended to read: |
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| A. Except as otherwise provided in paragraph B, any person in | possession of, or obligated with respect to, property or rights | to property subject to levy upon which a levy has been made | shall, upon demand of the assessor, surrender any such property | or rights or discharge any such obligation to |
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| the assessor within 21 days after receipt of the notice of | levy, except that part of the property or rights as is, at | the time of the demand, subject to an attachment or | execution under any judicial process. It is a defense to | the liability imposed by this subsection that the person | refusing to comply with the terms of a notice of a levy or | that person's bailor has a valid claim against the | delinquent taxpayer accruing prior to service of the notice | or a valid security interest or lien upon the property of | the taxpayer perfected prior to service of the notice; but | this defense exonerates the person refusing to comply from | liability only to the extent of that claim, security | interest or lien. |
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| Any financial institution chartered under state or federal | law, including, but not limited to, trust companies, savings | banks, savings and loan associations, national banks and | credit unions, shall surrender to the assessor any deposits, | including any interest in the financial institution that | would otherwise be required to be surrendered under this | subsection only after 21 days after service of levy, but not | later than 30 days after service of levy. Except as | provided in subsection 5, paragraph D, with respect to a | levy on salary or wages, any person in possession of, or | obligated with respect to, property subject to a continuing | levy against intangible personal property, which property is | first possessed or which obligation first arises subsequent | to service of a notice of levy on such person, shall, upon | demand of the assessor, surrender the property or rights, or | discharge the obligation to the assessor within 30 days | after the property is first possessed or the obligation | first arises. |
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| | Sec. 8. 36 MRSA §176-A, sub-§3, ¶C, as enacted by PL 1989, c. 880, Pt. | E, §3, is amended to read: |
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| C. Any person who fails or refuses to surrender any | property or rights to property, subject to levy, upon demand | by the assessor: |
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| (1) Is liable in person and estate to the State in a | sum equal to the value of the property not so | surrendered, but not exceeding the amount of taxes for | the collection of which the levy has been made, | together with costs and interests on the sum from the | date of the levy. Any amount, other than costs, | recovered under this paragraph must be credited against | the tax liability for the collection of which the levy | was made; and |
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| (2) Without reasonable cause, is liable for a penalty | equal to 50% of the amount recoverable under | subparagraph (1). A part of the penalty may not be | credited against the tax liability for the collection | of which the levy was made. It is lawful for the | assessor to collect the liability as determined by this | paragraph by levy upon the person's property in | accordance with the provisions of this section. |
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| The liability established by this paragraph is enforceable | by assessment and collection, in the manner prescribed in | this Part, against the person failing or refusing to comply | with the levy. |
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| | Sec. 9. 36 MRSA §177, sub-§6, as amended by PL 1999, c. 414, §8, is | further amended to read: |
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| | 6. Sale or cessation of business; purchaser liable for tax. | If a person liable for any trust fund taxes incurred in the | course of operating a business sells the business or stock of | goods or quits the business, the person shall make a final return | and payment within 15 days after the date of selling or quitting | the business. The successor, successors or assignees, if any, | shall withhold a sufficient amount of the purchase money price to | cover the amount of those taxes, along with applicable interest | and penalties, until such time as the former owner produces a | receipt from the State Tax Assessor showing that the taxes have | been paid, or a certificate from the assessor stating that no | trust fund taxes, interest or penalties are due. The liability | of a purchaser is limited to the higher of the purchase price or | the fair market value of the assets sold, transferred or | assigned. A purchaser who fails to withhold a sufficient amount | of the purchase money price is personally jointly and severally | liable for the payment of the taxes, penalties and interest | accrued and unpaid on account of the operation of the business by | the former owner, owners or assignors and the assessor may make | an assessment against the purchaser at any time within 6 years | from the date of the sale or transfer. |
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| | Sec. 10. 36 MRSA §187-B, sub-§1, as amended by PL 1999, c. 521, Pt. A, | §2, is further amended to read: |
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| | 1. Failure to file return. Any person who fails to make and | file any return required under this Title at or before the time | the return becomes due is liable for one of the following | penalties if the person's tax liability shown on such return or | otherwise determined to be due is greater than $25. |
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| A. If the return is filed before or within 30 days after the | taxpayer receives from the assessor a formal demand that |
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| the return be filed, or if the return is not filed but the | tax due is assessed by the assessor before the taxpayer | receives from the assessor a formal demand that the return | be filed, the penalty is $25 or 10% of the tax due, | whichever is greater. |
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| B. If the return is not filed within 30 days after the | taxpayer receives from the assessor a formal demand that the | return be filed, the penalty is 100% of the tax due. |
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| C. If the return is not filed and the assessor issues a | jeopardy assessment pursuant to section 141, subsection 2, | paragraph D, the penalty is 100% of the tax due. |
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| This subsection does not apply to any return required pursuant to | chapter 459 and administered pursuant to the International Fuel | Tax Agreement. |
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| | Sec. 11. 36 MRSA §187-B, sub-§2, as amended by PL 1999, c. 708, §§10 | and 11, are further amended to read: |
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| | 2. Failure to pay. The following penalties apply. |
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| A. Any person who fails to pay, on or before the due date, | any amount shown as tax on any return required under this | Title is liable for a penalty of 1% of the unpaid tax for | each month or fraction of a month during which the failure | continues, to a maximum in the aggregate of 25% of the | unpaid tax. |
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| A-1. Any person who fails to make and file any return | required under this Title at or before the time the return | becomes due against whom the assessor has made an assessment | of tax pursuant to section 141 and who has not paid the tax | on or before the date specified in that assessment is liable | for a penalty of 1% of the unpaid tax for each month or | fraction of a month during which the tax remains unpaid, | calculated retroactively from the original due date of the | unfiled return, to a maximum in the aggregate of 25% of the | unpaid tax. |
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| B. Any person who fails to pay a tax assessment for which | no further administrative or judicial review is available | pursuant to section 151 and the Maine Administrative | Procedure Act is liable for a penalty in the amount of 25% | of the amount of the tax due if the payment of the tax is | not made within 10 days of the person's receipt of notice of | demand for payment as provided by this Title. This penalty | must be explained in the notice of demand and is final when | levied. |
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| This subsection does not apply to taxes due pursuant to chapter | 369 459 and administered pursuant to the terms of the | International Fuel Tax Agreement. |
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| | Sec. 12. 36 MRSA §187-B, sub-§7, as amended by PL 1999, c. 708, §13, | is further amended to read: |
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| | 7. Reasonable cause. For reasonable cause, the State Tax | Assessor shall waive or abate any penalty imposed by subsection | 1; subsection 2, paragraphs A and B; and subsections 4-A and 5-A; | or by the terms of the International Fuel Tax Agreement. | Reasonable cause includes, but is not limited to, the following: |
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| A. The failure to file or pay resulted directly from | erroneous information provided by the Bureau of Revenue | Services; |
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| B. The failure to file or pay resulted directly from the | death or serious illness of the taxpayer or a member of the | taxpayer's immediate family; |
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| C. The failure to file or pay resulted directly from a | natural disaster; |
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| D. A return that was due monthly was filed and paid less | than one month late and all of the taxpayer's returns and | payments during the preceding 12 months were timely; |
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| E. A return that was due other than monthly was filed and | paid less than one month late and all of the taxpayer's | returns and payments during the preceding 3 years were | timely; |
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| F. The taxpayer has supplied substantial authority | justifying the failure to file or pay; or |
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| G. The amount subject to a penalty imposed by subsections | 1, 2 and 4-A; and subsection 5-A is de minimis when | considered in relation to the amount otherwise properly | paid, the reason for the failure to file or pay and the | taxpayer's compliance history. |
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| The burden of establishing grounds for waiver or abatement is on | the taxpayer. |
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| | Sec. 13. 36 MRSA §191, sub-§2, ¶Q, as repealed and replaced by PL | 1995, c. 625, Pt. A, §46, is amended to read: |
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| Q. The listing of licensed special fuel suppliers | possessing certificates under section 3204 and registered | suppliers possessing certificates under section 3205; |
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| | Sec. 14. 36 MRSA §457, sub-§8, as enacted by PL 1991, c. 121, Pt. B, | §2 and affected by §18, is amended to read: |
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| | 8. Penalty. Underpayment of the tax imposed by this section | and the prepayment of estimated tax required by this section are | subject to the penalties imposed by section 187 187-B. |
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| | Sec. 15. 36 MRSA §844, sub-§2, as amended by PL 1995, c. 262, §7, is | further amended to read: |
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| | 2. Nonresidential property of $1,000,000 or greater. | Notwithstanding subsection 1, with regard to nonresidential | property or properties with an equalized municipal valuation of | $1,000,000 or greater either separately or in the aggregate, | either party may choose to appeal the decision of the assessors | assessor or the municipal officers with regard to a request for | abatement to the State Board of Property Tax Review within 60 | days after notice of the decision from which the appeal is taken | or after the application is deemed to be denied. If the state | board thinks that the applicant is over-assessed, it shall grant | such reasonable abatement as the board thinks proper. For the | purposes of this subsection, "nonresidential property" means | property that is used primarily for commercial, industrial or | business purposes, excluding unimproved land that is not | associated with a commercial, industrial or business use. |
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| | Sec. 16. 36 MRSA §1481, sub-§5, as amended by PL 1981, c. 706, §18, | is further amended to read: |
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| | 5. Vehicle. "Vehicle" means a motor vehicle, mobile home, | camper trailer, heavier-than-air aircraft or lighter-than-air | aircraft. "Vehicle" shall does not include any snowmobiles as | defined in Title 12, section 1971 7821. |
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| | Sec. 17. 36 MRSA §1752, sub-§17-A, ¶G, as repealed and replaced by PL | 1999, c. 790, Pt. A, §42 and affected by §43, is amended to read: |
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| G. Rental of audio and video tapes and audio and video | equipment; |
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| | Sec. 18. 36 MRSA §1752, sub-§17-A, ¶K, as enacted by PL 1999, c. 790, | Pt. A, §46 and affected by §47, is amended to read: |
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| K. Rental of furniture, audio tapes and audio equipment | pursuant to a rental-purchase agreement as defined in Title | 9-A, section 11-105. |
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| | Sec. 19. 36 MRSA §1760, sub-§54, as enacted by PL 1985, c. 819, Pt. A, | §§42 and 43, is amended to read: |
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| | 54. Food stamp and WIC purchases. Sales of items purchased | with federal food stamps or Women, Infants and Children, WIC, | Special Supplemental Food Program food instruments distributed by | the Department of Human Services. |
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| | Sec. 20. 36 MRSA §2013, sub-§§2 and 3, as amended by PL 1999, c. 757, | §1 and affected by §3, are further amended to read: |
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| | 2. Refund authorized. Any person, association of persons, | firm or corporation that purchases electricity, or that purchases | or leases depreciable machinery or equipment, for use in | commercial agricultural production, commercial fishing or | commercial aquacultural production must be refunded the amount of | sales tax paid upon presenting to the State Tax Assessor evidence | that the purchase is eligible for refund under this section. |
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| Evidence required by the assessor may include a copy or copies of | that portion of the purchaser's or lessee's most recent filing | under the United States Internal Revenue Code that indicates that | the purchaser or lessee is engaged in commercial agricultural | production, commercial fishing or commercial aquacultural | production and that the purchased machinery or equipment is | depreciable for those purposes or would be depreciable for those | purposes if owned by the lessee. |
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| In the event that any piece of machinery or equipment is only | partially depreciable under the United States Internal Revenue | Code, any reimbursement of the sales tax must be prorated | accordingly. In the event that electricity is used in qualifying | and nonqualifying activities, any reimbursement of the sales tax | must be prorated accordingly. |
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| Application for refunds must be filed with the assessor within 36 | months of the date of purchase or execution of the lease. |
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| | 3. Purchases made free of tax with certificate. Sales tax | need not be paid on the purchase of electricity or of a single | item of machinery or equipment if the purchaser has obtained a | certificate from the assessor stating that the purchaser is | engaged in commercial agricultural production, commercial fishing | or commercial aquacultural production and authorizing the | purchaser to purchase electricity or depreciable machinery and | equipment without paying Maine sales tax. The seller is required |
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| to obtain a copy of the certificate together with an affidavit as | prescribed by the assessor, to be maintained in the seller's | records, attesting to the qualification of the purchase for | exemption pursuant to this section. In order to qualify for this | exemption, the electricity or depreciable machinery or equipment | must be used directly in commercial agricultural production, | commercial fishing or commercial aquacultural production. In | order to qualify for this exemption, the electricity must be used | in qualifying activities, including support operations. |
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| | Sec. 21. 36 MRSA §3202, sub-§§2-B and 2-C are enacted to read: |
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| | 2-B.__IFTA.__"IFTA" means the International Fuel Tax Agreement | administered by the International Fuel Tax Association, Inc., a | nonprofit corporation organized under the laws of the State of | Arizona. |
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| | 2-C.__IFTA governing documents.__"IFTA governing documents" | means the IFTA Articles of Agreement, the IFTA Audit Manual and | the IFTA Procedures Manual. |
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| | Sec. 22. 36 MRSA §3203, sub-§1, as amended by PL 1999, c. 733, §4 and | affected by §17, is further amended to read: |
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| | 1. Generally. Except as provided in section 3204-A, an | excise tax is levied and imposed on all suppliers of special fuel | distillates sold, on all retailers of low-energy fuel sold and on | all users of special fuel used in this State for each gallon of | distillate at the rate of 23¢ per gallon and for each gallon of | low-energy fuel based on the British Thermal Unit, referred to in | this subsection as "BTU," energy content for each fuel as | compared to gasoline. These values are as follows. |
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| Fuel type BTU content Formula Tax rate |
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| 115,000 100% x 22¢ 22¢ per |
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| Methanol | | 65,530 57% x 22¢ 12.5¢ per |
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| Ethanol | | 81,850 71% x 22¢ 15.6¢ per |
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| 100,000 87% x 22¢ 19.1¢ per |
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| Natural Gas | (BTU per 100 | 100 |
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| | Sec. 23. 36 MRSA §3205, as amended by PL 1999, c. 414, §30, is | further amended to read: |
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| §3205. Registered supplier |
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| | Every supplier of special fuel making sales only of dyed fuel | or taxable special fuel distillates pursuant to section 3203 | shall register with the State Tax Assessor on forms prescribed | and supplied by the assessor. A copy of the registration | certificate must be displayed in each place of business of that | supplier. |
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| | Sec. 24. 36 MRSA §3209, as amended by PL 1999, c. 733, §§11 and 12 | and affected by §17, is further amended to read: |
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| §3209. Reports; International Fuel Tax Agreement; payment of |
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| tax; allowance for losses |
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| | 1. Suppliers. Every licensed supplier shall file on or | before the last day of each month a report with the assessor | State Tax Assessor stating the gross gallons of special fuel | distillates received, sold and used in this State by that | supplier during the preceding calendar month, on a form | prescribed and furnished by the assessor. The report must | contain any further information reasonably required by the | assessor. At the time of filing the report required by this | subsection, each supplier must pay to the assessor a tax as | prescribed in section 3203 upon each gallon reported as a taxable | sale or as taxable gallons used. |
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| | 1-A. Retailers. Every licensed retailer shall file on or | before the last day of each month a report with the assessor | stating the gross gallons of special fuel low-energy fuel | received, sold and used in this State by that retailer during the | preceding calendar month on a form prescribed and furnished by | the assessor. The report must contain any further information | reasonably required by the assessor. At the time of filing the | report required by this subsection, each retailer shall pay to | the assessor a tax as prescribed in section 3203 upon each gallon | reported as a taxable sale or as taxable gallons used. |
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| | 1-B.__International Fuel Tax Agreement.__The State Tax | Assessor shall take all steps necessary to maintain the State's | membership in the IFTA, in order to: |
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| A.__Facilitate the administration of this chapter; |
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| B.__Promote the fullest and most efficient possible use of | the highway system; and |
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| C.__Make uniform the administration, collection and | enforcement of special fuel use taxation laws with respect | to motor vehicles operated in multiple jurisdictions, by | ensuring this State's full participation in the single-base | jurisdiction system embodied in the IFTA governing | documents, agreed to by other IFTA member jurisdictions and | approved by the United States Congress in the Intermodal | Surface Transportation Efficiency Act of 1991. |
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| The assessor is authorized to ratify amendments to the IFTA | governing documents on behalf of this State, except that the | assessor may not ratify any provision that infringes on the | substantive taxation authority of the Legislature, including the | power to impose taxes, set tax rates and determine exemptions.__ | Subject to the provisions of this Title, the assessor may | delegate to the Secretary of State the responsibility for the | processing of special fuel tax returns, special fuel tax | collection and compliance with IFTA administrative requirements.__ | The assessor shall consult with the Secretary of State and the | Commissioner of Public Safety with respect to rules adopted by | the Secretary of State pertaining to IFTA. |
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| | 2. Users generally. Except as provided by subsection 4, for | the purpose of determining the amount of tax imposed, each user, | not later than the last day of April, July, October and January | of each year, shall file with the assessor a report that must | include the total gallonage of fuels used within this State | during the quarter ending the last day of the preceding month. | The report must contain any further information reasonably | required by the assessor. At the time of filing the report |
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| required by this subsection, each user shall pay to the assessor | the tax imposed by section 3203 upon each gallon reported as a | taxable use or as taxable gallons used, which has not been | subjected to the special fuel tax. |
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| | 3. Exempt users. Any user of special fuel operating | exclusively within this State and using only special fuel | purchased within this State upon which the State has received the | special fuel tax, may be exempted, at the discretion of the | assessor, from filing reports under this chapter. Any user of | special fuel requesting exemption from filing reports shall file | an affidavit as prescribed by the assessor. |
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| | 4. Annual returns in certain circumstances. Notwithstanding | any other provisions of this section, when the annual tax | liability is expected to be $100 or less, a user, with the | approval of the assessor, may file an annual return with payment | on or before January 31st of each year covering the prior year | when the annual tax liability is expected to be $100 or less or | when allowed by the IFTA governing documents. |
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| | 5. Monthly reports from wholesalers. Each wholesaler shall | submit on or before the last day of each month on a form | prescribed and furnished by the assessor a report stating the | number of gross gallons sold by that wholesaler to each supplier, | importer, exporter or any other person that purchased special | fuel from that wholesaler during the preceding month. The report | must clearly identify each purchaser and indicate the number of | gallons that each purchaser received from the wholesaler. The | report must also contain any other information reasonably | required by the assessor. |
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| | Sec. 25. 36 MRSA §4365, as amended by PL 1999, c. 414, §37, is | further amended to read: |
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| | A tax is imposed on all cigarettes imported into this State or | held in this State by any person for sale at the rate of 18.5 37 | mills for each cigarette. Payment of the tax is evidenced by the | affixing of stamps to the packages containing the cigarettes. If | an individual purchases in any one month unstamped packages | containing cigarettes in a quantity greater than 2 cartons from a | person other than a licensed distributor or dealer, the tax may | be assessed directly against the purchaser by the State Tax | Assessor within 3 years from the date of the purchase. |
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| | Beginning November 1, 1997, as a public health measure, the | tax imposed under this section is 37 mills per cigarette. |
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| | Sec. 26. 36 MRSA §4373-A, sub-§2, as enacted by PL 1997, c. 458, §19, | is amended to read: |
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| | 2. Inspection and examination; penalty. The assessor or any | authorized agent may enter into or upon any premises where there | is reason to believe that cigarettes are possessed, stored or | sold, and may examine the books, papers, records and cigarette | stock of any distributor or dealer to determine compliance with | the provisions of this chapter. Failure or refusal to permit an | examination pursuant to this subsection is a civil violation for | which a fine in the amount of $250 must be imposed, no part of | which may be suspended. |
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| | Sec. 27. 36 MRSA §5122, sub-§2, ¶L, as amended by PL 1999, c. 708, §35 | and c. 731, Pt. S, §2 and affected by §4 and amended by c. 790, | Pt. A, §49, is repealed and the following enacted in its place: |
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| L.__For income tax years beginning on or after January 1, | 2000, an amount equal to the total premiums spent for | qualified long-term care insurance contracts as defined in | the Code, Section 7702B(b), as long as the amount subtracted | is reduced by the long-term care premiums claimed as an | itemized deduction pursuant to section 5125; |
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| | Sec. 28. 36 MRSA §5122, sub-§2, ¶M, as enacted by PL 1999, c. 708, §36 | and c. 731, Pt. S, §3 and affected by §4, is repealed and the | following enacted in its place: |
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| M.__An amount, for each primary recipient of benefits under | an employee retirement plan, that is the lesser of: |
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| (1)__Six thousand dollars reduced by the total amount | of the primary recipient's social security benefits and | railroad retirement benefits paid by the United States, | but not less than $0; or |
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| (2)__The aggregate of benefits received by the primary | recipient under employee retirement plans and included | in federal adjusted gross income. |
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| For purposes of this paragraph, "employee retirement plan" means | a state, federal or military retirement plan or any other | retirement benefit plan established and maintained by an employer | for the benefit of its employees under Section 401(a), Section | 403 or Section 457(b) of the Code.__"Employee retirement plan" | does not include an individual retirement account under Section | 408 of the Code, a Roth IRA |
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| under Section 408A of the Code, a rollover individual | retirement account, a simplified employee pension under | Section 408(k) of the Code or an ineligible deferred | compensation plan under Section 457(f) of the Code. |
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| For purposes of this paragraph, "primary recipient" means | the retiree whose employment gave rise to the pension or | that retiree's surviving spouse.__In the case of a | retirement plan benefit distributed to both a living retiree | and the retiree's living spouse, the retiree may calculate | the deduction under this paragraph based on the total amount | received during the tax year by both spouses; |
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| | Sec. 29. 36 MRSA §5122, sub-§2, ¶N is enacted to read: |
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| 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; |
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| | Sec. 30. 36 MRSA §5200, first ¶, as repealed and replaced by PL 1983, | c. 477, Pt. F, sub-Pt. 3, §1, is amended to read: |
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| | A tax is imposed upon the Maine net income of taxable | corporations for each taxable year at the following rates: |
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| If the Maine net income is: The tax is: |
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| Not over $25,000 3.5% of Maine net income |
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| $25,000 but not over $75,000 $875 plus 7.93% of |
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| $75,000 but not over $250,000 $4,840 plus 8.33% of |
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| $250,000 or more $19,417 $19,418 plus 8.93% of |
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| | Sec. 31. 36 MRSA §5200-A, sub-§2, ¶C, as amended by PL 1983, c. 855, | §21, is further amended to read: |
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| C. An amount equal to the taxpayer's new jobs credit or | work opportunity credit as determined under the laws of the | United States; |
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| | Sec. 32. 36 MRSA §5219-O, sub-§1, as amended by PL 1999, c. 414, §48, | is further amended to read: |
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| | 1. Credit allowed. A taxpayer constituting an employing unit | that employs fewer than 5 low-income employees is allowed a | credit to be computed as provided in this section against the tax | imposed by this Part, subject to the limitations contained in | subsections 3 and 4. The credit equals the lesser of 20% of | dependent health benefits paid with respect to the taxpayer's | low-income employees under a health benefit plan during the | taxable year for which the credit is allowed or $125 per low- | income employee with dependent health benefits coverage. A | taxpayer who received a credit under this section in the | preceding year and whose number of low-income employees is 5 or | more may continue to receive the credit for 2 years after the | last year in which the number of low-income employees was fewer | than 5. |
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| | Sec. 33. 36 MRSA §5228, sub-§4, as repealed and replaced by PL 1985, | c. 691, §§35 and 48, is amended to read: |
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| | 4. Due dates for estimated tax installments. For individuals, | trusts and estates, an installment payment is due the 15th day of | the 4th, 6th, 9th and 13th month following the beginning of their | the taxpayers' fiscal year, except that farmers and fishermen | persons who fish commercially have a single installment payment | due date of January 15th of the following taxable year. For | corporations and financial institutions, an installment payment | is due the 15th day of the 4th, 6th, 9th and 12th month following | the beginning of their the taxpayers' fiscal year. |
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| | Sec. 34. 36 MRSA §6201, sub-§2, as amended by PL 1999, c. 507, §1 and | affected by §3, is further amended to read: |
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| | 2. Claimant. "Claimant" means an individual who has filed a | claim under this chapter and was domiciled in this State and | occupied a homestead in this State during the entire calendar | year preceding the year in which a claim for relief under this | chapter is filed. "Claimant" also includes an individual who has | filed a claim under this chapter and who was domiciled in this | State and owned or otherwise maintained a homestead in this State | during the entire calendar year preceding the year in which the | claim for relief under this chapter is filed and occupied that | homestead for at least 6 months during that year. Regardless of | how many names of individuals appear on the property deed, the | person who meets the qualifications described in this subsection | and proves sole responsibility for the payment of the property | taxes on the subject property is the claimant for with respect to | that property. If 2 or more individuals meet the qualifications | in this subsection and share the payment of the rent or the | responsibility for the payment of the property taxes, each | individual may apply on the basis of the rent paid or the |
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| property taxes levied on the homestead that reflect the ownership | percentage of the claimant and the claimant's household. |
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| If 2 or more individuals claim the same property, the matter must | be referred to the State Tax Assessor, whose decision is final. | Ownership of a homestead under this chapter may be by fee, by | life tenancy, by bond for deed, as mortgagee or any other | possessory interest in which the owner is personally responsible | for the tax for which a refund is claimed. |
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| | Sec. 35. 36 MRSA §6201, sub-§12, as amended by PL 1997, c. 557, Pt. A, | §1 and affected by Pt. G, §1, is further amended to read: |
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| | | 12. Year for which relief is requested. "Year for which | relief is requested" means the calendar year preceding that in | which the claim is filed. For a claim filed in January of any | year, "year for which relief is requested" means the calendar | year 2 years preceding that in which the claim is filed. |
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| | Sec. 36. 36 MRSA §6204, as amended by PL 1997, c. 562, Pt. A, §1, | is further amend to read: |
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| | A claim may not be paid unless the claim is filed with the | Bureau of Revenue Services on or after August 1st and on or | before the following January December 31st. |
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| | Sec. 37. 36 MRSA §6651, sub-§1, as amended by PL 1997, c. 557, Pt. B, | §11 and affected by Pt. G, §1, is further amended to read: |
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| | 1. Eligible property. "Eligible property" means qualified | business property first placed in service in the State, or | constituting construction in progress commenced in the State, | after April 1, 1995. "Eligible property" includes, without | limitation, repair parts, replacement parts, additions, | accessions and accessories to other qualified business property | placed in service on or before April 1, 1995 if the part, | addition, accession or accessory is first placed in service, or | constitutes construction in progress, in the State after April 1, | 1995. "Eligible property" also includes inventory parts. | "Eligible property" is subject to reimbursement pursuant to this | chapter for up to 12 years, but the 12 years must be reduced by | one year for each year during which a taxpayer included the same | property in its investment credit base under section 5219-E or | 5219-M and claimed the credit provided in either section on its | income tax return. |
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| | Sec. 38. 36 MRSA §6651, sub-§3, as enacted by PL 1995, c. 368, Pt. | FFF, §2, is amended to read: |
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| | 3. Qualified business property. "Qualified business | property" means tangible personal property that: |
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| A. Is used or held for use exclusively for a business | purpose by the person in possession of it or, in the case of | construction in progress or inventory parts, is intended to | be used exclusively for a business purpose by the person who | will possess that property; and |
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| (1) Was subject to an allowance for depreciation under | the Code on April 1st of the property tax year to which | the claim for reimbursement relates or would have been | subject to an allowance for depreciation under the Code | as of that date but for the fact that the property has | been fully depreciated; or |
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| (2) In the case of construction in progress or | inventory parts, would be subject under the Code to an | allowance for depreciation when placed in service or | would have been subject to an allowance for | depreciation under the Code as of that date but for the | fact that the property has been fully depreciated. |
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| "Qualified business property" also includes all property that is | affixed or attached to a building or other real estate if it is | used to further a particular trade or business activity taking | place in that building or on that real estate. "Qualified | business property" does not include components or attachments to | a building if used primarily to serve the building as a building, | regardless of the particular trade or activity taking place in or | on the building. "Qualified business property" also does not | include land improvements if used primarily to further the use of | the land as land, regardless of the particular trade or business | activities taking place in or on the land. In the case of | construction in progress or inventory parts, the term "used" | means intended to be used. "Qualified business property" also | does not include any vehicle registered for on-road use on which | a tax assessed pursuant to chapter 111 has been paid or any | watercraft registered for use on state waters on which a tax | assessed pursuant to chapter 112 has been paid. |
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| | Sec. 39. 36 MRSA §6652, sub-§1, as amended by PL 1997, c. 729, Pt. B, | §1, is further amended to read: |
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| | 1. Generally. A person against whom taxes have been assessed | pursuant to Part 2, except for chapters 111 and 112, with respect | to eligible property and who has paid those taxes is entitled to | reimbursement of those taxes from the State as provided in this | chapter. For purposes of this chapter, a tax applied as a credit | against a tax assessed pursuant to chapter 111 or 112 is a tax | assessed pursuant to chapter 111 or 112.__Eligible property is | subject to reimbursement pursuant to this chapter for up to 12 | property tax years, but the 12 years must be reduced by one year | for each year during which a taxpayer included the same property | in its investment credit base under section 5219-D, 5219-E or | 5219-M and claimed the credit provided in one or more of those | sections on its income tax return, and reimbursement may not be | made in a year in which one or more those credits is taken. |
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| | Sec. 40. 36 MRSA §6652, sub-§1-B, as enacted by PL 1997, c. 24, Pt. C, | §14, is amended to read: |
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| | 1-B. Certain property excluded. Notwithstanding any other | provision of law, reimbursement pursuant to this chapter may not | be made with respect to the following property: |
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| A. Office furniture, including without limitation tables, | chairs, desks, bookcases, filing cabinets and modular office | partitions; and |
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| B. Lamps and lighting fixtures. |
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| This subsection applies to property tax years beginning after | April 1, 1996. Property affected by this subsection that was | eligible for reimbursement pursuant to chapter 915 of property | taxes paid for the 1996 property tax year is grandfathered into | the program and continues to be eligible for reimbursements for | up to 12 property tax years, unless it subsequently becomes | ineligible. |
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| | Sec. 41. 36 MRSA §6652, sub-§1-C, ¶¶B and C, as amended by PL 1999, c. | 398, Pt. A, §103 and affected by §§104 and 105, are further | amended to read: |
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| B. Except as provided in paragraph C, reimbursement may not | be made for property used to produce or transmit energy | primarily for sale. Energy is primarily for sale if during | the property tax year immediately preceding the property tax | year for which a claim is being made 2/3 or more of the | useful energy is directly or indirectly sold and transmitted | during the property tax year through the facilities of a | transmission and distribution utility as defined in Title | 35-A, section 102, subsection 20-B. |
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| C. A cogeneration facility is eligible for reimbursement on | that portion of property taxes paid multiplied by a | fraction, the numerator of which is the total amount of | useful energy produced by the facility during the property | tax year immediately preceding the property tax year for | which a claim is being made that is directly used by a | manufacturing facility without transmission over the | facilities of a transmission and distribution utility as | defined in Title 35-A, section 102, subsection 20-B and the | denominator of which is the total amount of useful energy | produced by the facility during the property tax year | immediately preceding the property tax year for which a | claim is being made. |
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| | Sec. 42. 36 MRSA §6658, as enacted by PL 1995, c. 368, Pt. FFF, §2 | and amended by PL 1997, c. 526, §14, is further amended to read: |
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| §6658. Subsequent changes |
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| | If, after a claim for reimbursement has been filed, the | associated property tax assessment is reduced or abated for any | reason, or the property tax paid is applied as a credit against | the tax assessed pursuant to chapter 111 or 112, the claimant | shall file, within 60 days after receipt of the reduction or, | abatement or credit, an amended claim for reimbursement | reflecting the reduction or, abatement or credit. If a claimant | has received reimbursement for property tax that is reduced or, | abated or credited against the tax assessed pursuant to chapter | 111 or 112, the claimant shall, within 60 days of receipt of the | reduction or, abatement or credit, refund to the Bureau of | Revenue Services the amount of the reimbursement for the property | tax that has been reduced or, abated or credited. If the | claimant fails to make the refund within the 60-day period, the | State Tax Assessor, within 3 years from the claimant's receipt of | reimbursement, may issue an assessment for the amount that the | claimant owes to the Bureau of Revenue Services. The claimant | may seek reconsideration, pursuant to section 151, of the | assessment. |
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| | Sec. 43. 36 MRSA §6661 is enacted to read: |
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| | The procedure for business property tax reimbursement provided | by this chapter may be referred to as the "Business Equipment Tax | Reimbursement" or "BETR" program. |
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| | Emergency clause. In view of the emergency cited in the preamble, | this Act takes effect when approved. |
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| | This bill makes technical corrections, clarifications, updates | and in some cases minor substantive changes to various provisions | of the tax law, the Maine Revised Statutes, Title 36. |
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