Whereas, the 90-day period would delay the processing of the year 2002 income tax returns; and

Whereas, legislative action is immediately necessary to ensure continued and efficient administration of the Maine Income Tax Law and certain other state taxes; 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 §111, sub-§1-A, as amended by PL 2001, c. 559, Pt. GG, §1 and affected by §26, is further amended to read:

1-A. Code. "Code" means the United States Internal Revenue Code of 1986 and amendments to that Code as of March 15 December 31, 2002.

Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2002 and to any prior years as specifically provided by the United States Internal Revenue Code.

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

SUMMARY

This bill updates references contained in the Maine Revised Statutes, Title 36 to the Internal Revenue Code, as amended through December 31, 2002, for tax years beginning on or after January 1, 2002 and to any prior years as specifically provided by the Code. The bill affects primarily Maine's income tax and estate tax laws.