LD 1338
pg. 3
Page 2 of 4 An Act To Reform the Tax Laws Page 4 of 4
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LR 171
Item 1

 
imposed under this chapter.__The local option income tax is
computed at the same rate as and replaces the income tax under
this chapter.

 
2.__Notify assessor.__A municipality that imposes a local
option income tax under this section shall notify the assessor
at least 90 days before the local tax is effective.

 
3.__Administered by State.__A taxpayer in a municipality
that has imposed a local option income tax under this section
shall pay that tax at the time of and in the manner provided
for the payment of state income tax.__The tax is subject to
the same interest, penalties and administrative actions as
other taxes assessed under this Part.

 
4.__Transfer of revenue.__Each month the assessor shall
identify the amount of revenue attributable to each
municipality under this section, subtract 15% and certify the
net amount due each municipality to the Treasurer of State and
the Commissioner of Education.__The Treasurer of State shall
make monthly payments to municipal treasurers of the net
amounts certified by the assessor under this subsection.__
Revenue collected pursuant to this section is not considered
to be receipts from the taxes imposed under this Part for
purposes of transfers to the Local Government Fund under Title
30-A, section 5681.

 
5.__Use of income tax revenue.__The revenue raised by the
adoption of a local option income tax must be expended by the
municipality in the same manner that the municipality expends
general purpose aid for local schools under Title 20-A,
chapters 606 and 606-A.

 
6.__Referendum.__The question of whether to impose a local
option income tax must be submitted to the legal voters of a
municipality that seeks to impose the local option income tax.

 
The petition process and the voting at elections held in towns
and plantations must be held and conducted in accordance with
Title 30-A, sections 2528, 2529 and 2532 even if the
municipality has not accepted the provisions of section 2528.__
The voting at

 
elections held in municipalities must be held and conducted in
accordance with Title 21-A.

 
The municipal clerk shall make a return of the results,
certify the results and send them to the Secretary of State.__
The Secretary of State shall forward the results to the
assessor.

 
The local option income tax may be discontinued by referendum
conducted in the same manner as is the referendum adopting the
tax under this section.


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