1.__Resident.__A tax is imposed for each taxable year beginning on or after January 1, 2004 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. 6. 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 J, §7, is repealed and following enacted in its place: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Sec. 7. 36 MRSA §5126, as amended by PL 2001, c. 583, §16, is repealed.

Sec. 8. 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.

Sec. 9. 36 MRSA §5224-A, as amended by PL 1989, c. 596, Pt. J, §5, is further amended to read:

§5224-A. Return of part-year resident

If an individual changes that individual's status as a resident individual or nonresident individual during the taxable year, the individual shall file a nonresident return pursuant to section 5220, subsection 2. That individual's tax shall must be computed, pursuant to section 5111 5111-C, subsection 4 2, as