over $6,300

At least $12,500 but $405 plus 7% of

less than $25,050 the excess over

$12,500

$25,050 or more $1,284 plus 8.5%

of the excess

over $25,050

Sec. C-8. 36 MRSA §5111, sub-§3-B, as enacted by PL 1999, c. 731, Pt. T, §7, is amended to read:

3-B. Individuals filing married joint return or surviving spouses; tax years beginning 2002. For tax years beginning on or after January 1, 2002, for individuals filing married joint returns or surviving spouses permitted to file a joint return, the tax imposed by this section is calculated as follows, except that the top rate provided by this subsection is annually reduced by .0005 starting with tax years that begin during calendar year 2005, until such rate reaches .0775 in 2019:

If Maine Taxable income is: The tax is:

Less than $8,400 2% of the Maine

taxable income

At least $8,400 but $168 plus 4.5%

less than $16,700 of the excess

over $8,400

At least $16,700 but $542 plus 7% of

less than $33,400 the excess over

$16,700

$33,400 or more $1,711 plus 8.5%

of the excess

over $33,400

Sec. C-9. 36 MRSA §5402, sub-§1-B, as enacted by PL 1999, c. 731, Pt. T, §8 and affected by §11, is repealed and the following enacted in its place:

1-B.__Cost-of-living adjustment.__Except as provided in subsection 1-C, "cost-of-living adjustment" means the Consumer Price Index for the 12-month period ending June 30th of the immediately preceding calendar year divided by the Consumer Price Index for the immediately preceding 12-month period ending June 30th of the prior calendar year.