PART II

Sec. II-1. 36 MRSA §187-B, sub-§1-A is enacted to read:

1-A. Failure to file information return.__A person failing to file an information return as required by section 5241 at or before the time the return becomes due is liable for a penalty of $10 per month multiplied by the number of partners or shareholders of the entity for the tax year at issue for each month that such failure continues, limited to $1,000 per month and $5,000 per information return.__The assessment of the penalty is against the entity and is in lieu of the penalty in subsection 1.__The penalty is not considered a tax for purposes of Title 30- A, section 5681, subsection 5.

Sec. II-2. 36 MRSA §5245 is enacted to read:

§5245.__Service fee

An annual service fee of $100 is imposed on every entity that files or is required to file an information return under section 5241.__The fee is due and payable on or before the date fixed for filing the return under section 5241 determined without regard to any extension of time for filing the return.__The fee is not considered a tax for purposes of Title 30-A, section 5681, subsection 5.__This fee is subject to interest under section 186 and penalties under section 187-B in the same manner as taxes imposed by this Part are subject to interest and penalties under sections 186 and 187-B.

Sec. II-3. Application. This Part applies to returns due for tax years beginning on or after January 1, 2004.

PART JJ

Sec. JJ-1. 36 MRSA §5203-A, as amended by PL 2003, c. 479, §7, is repealed.

Sec. JJ-2. 36 MRSA §5203-B, as amended by PL 1995, c. 281, §29, is further amended to read:

§5203-B. Corporate income tax surcharge

In addition to the tax liability otherwise established by this Part, a tax surcharge of 10% of the total amount of state tax liability established by sections 5200 and 5203-A 5203-C is