It bars a refund of overpaid withheld income taxes to a pass- through entity if the overpayment results from income tax actually withheld from members of the pass-through entity and remitted to the Department of Administrative and Financial Services, Maine Revenue Services pursuant to the Maine Revised Statutes, Title 36, section 5250-B. Instead, the overpayment is refunded directly to the individual member when that member claims a withholding credit on the member's individual income tax return. This provision is necessary to prevent pass-through entities from receiving a refund of income tax withholding that is also claimed as a credit on the Maine income tax return of the members of the pass-through entity.

It provides for accrual of interest on debts attributable to a redetermination under the Maine Residents Property Tax Program and authorizes setoff of current-year benefits to recover overpayments from prior years. It also clarifies that appeals of redeterminations are governed by Title 36, section 151 and eliminates gender-specific language.

It clarifies procedures relating to denial and recovery of excessive claims attributable to fraud or negligence under the Maine Residents Property Tax Program, replaces the special 1% per month rate of interest applicable to these debts with a rate generally applicable to overdue taxes and clarifies that intent is an element of the crime of filing a fraudulent claim for the claimant as well as for the preparer or the supplier of information or an assistant of those persons.

It clarifies that compensation received after 2003 from personal services performed in the State prior to 2004 by a nonresident individual is taxable to the State only if the personal services are performed in the State for more than 10 days during the year in which the compensation is received. It further clarifies that compensation received after 2003 for personal services performed after 2003 by a nonresident individual is taxable to the State only if the personal services are performed in the State for more than 10 days during the year in which the compensation was earned.