Whereas, current law permits the State to make income tax refunds up to 3 months after filing or the filing deadline; and

Whereas, the filing deadline for most individual income tax returns is April 15th; and

Whereas, current economic conditions warrant requiring more rapid payment of income tax refunds for the 2003 filing season; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §5279, sub-§4, as amended by PL 1991, c. 546, §37, is further amended to read:

4. Exceptions. If any overpayment of tax imposed by this Part is refunded within 3 months 45 days after the last date prescribed, or permitted by extension of time, for filing the return of that tax or within 3 months 45 days after the return listing the overpayment was filed, whichever is later, no interest is allowed under this section. In addition, no interest is allowed with respect to the period during which a refund is delayed pending resolution of a proposed setoff under section 5276-A.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill shortens the time period for the State to make income tax refunds without being required to pay interest from 3 months to 45 days.