An Act To Cut Taxes on Maine Residents by over $140,000,000
PART A
Sec. A-1. 36 MRSA §5111, as amended by PL 1999, c. 731, Pt. T, §§1 to 7, is repealed and the following enacted in its place:
§ 5111. Imposition and rate of tax
A tax is imposed for each taxable year beginning on or after January 1, 2008, on the Maine taxable income of every resident individual of this State at the rate of 6%.
Sec. A-2. 36 MRSA §5111-A, as repealed and replaced by PL 1987, c. 819, §3, is repealed.
Sec. A-3. 36 MRSA §5112, as enacted by P&SL 1969, c. 154, Pt. F, §1, is repealed.
Sec. A-4. 36 MRSA §5113, as repealed and replaced by PL 1983, c. 571, §19, is repealed.
Sec. A-5. 36 MRSA §5121, as amended by PL 2003, c. 390, §26, is further amended to read:
§ 5121. Maine taxable income
The Maine taxable income of a resident individual is equal to the individual's federal adjusted gross income as defined by the Code with the modifications and less the deductions and personal exemptions provided in this chapter.
Sec. A-6. 36 MRSA §5122, sub-§1, ¶N, as amended by PL 2007, c. 240, Pt. CCC, §2 and affected by §4, is further amended to read:
(1) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 30% bonus depreciation deduction claimed by the taxpayer pursuant to Section 101 of the federal Job Creation and Worker Assistance Act of 2002, Public Law 107-147 with respect to property placed in service during the taxable year;
(2) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 with respect to property placed in service during the taxable year; and
(3) For taxable years beginning on or after January 1, 2003 but prior to January 1, 2008, the increase in aggregate cost under Section 179 of the Code arising from amendments to the Code applicable to tax years beginning on or after January 1, 2003 pursuant to Section 202 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 or pursuant to Section 201 of the federal American Jobs Creation Act of 2004, Public Law 108-357;
Sec. A-7. 36 MRSA §5122, sub-§2, ¶L, as amended by PL 2003, c. 705, §11 and affected by §14, is further amended to read:
Sec. A-8. 36 MRSA §5122, sub-§2, ¶T, as amended by PL 2005, c. 519, Pt. LLL, §1 and c. 622, §26, is further amended to read:
For income tax years beginning on or after January 1, 2004 but before January 1, 2008, an amount equal to the total premiums spent for qualified long-term care insurance contracts certified under Title 24-A, section 5075-A, as long as the amount subtracted is reduced by any amount claimed as a deduction for federal income tax purposes in accordance with the Code, Section 162(l) and by the long-term care premiums claimed as an itemized deduction pursuant to section 5125 . For income tax years beginning on or after January 1, 2008, an amount equal to the total premiums spent for qualified long-term care insurance contracts certified under Title 24-A, section 5075-A, as long as the amount subtracted is reduced by any amount claimed as a deduction for federal income tax purposes in accordance with the Code, Section 162(l);
Sec. A-9. 36 MRSA §5124-A, as amended by PL 2005, c. 12, Pt. P, §5, is repealed.
Sec. A-10. 36 MRSA §5125, as amended by PL 2005, c. 12, Pt. P, §6 and affected by §10, is repealed.
Sec. A-11. 36 MRSA §5126, as amended by PL 2001, c. 583, §16, is repealed.
Sec. A-12. 36 MRSA §5160, as amended by PL 2003, c. 390, §35, is further amended to read:
§ 5160. Imposition of tax
The tax is imposed, at the rates rate provided by section 5111 for single individuals, upon the Maine taxable income of estates and trusts. The tax must be paid by the fiduciary.
Sec. A-13. 36 MRSA §5192, sub-§2, as amended by PL 1985, c. 783, §32, is repealed.
Sec. A-14. 36 MRSA §5200, sub-§1, as amended by PL 2005, c. 618, §6 and affected by §22, is repealed and the following enacted in its place:
Sec. A-15. 36 MRSA §5200-A, sub-§1, ¶N, as amended by PL 2007, c. 240, Pt. CCC, §3 and affected by §4, is further amended to read:
(1) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 30% bonus depreciation deduction claimed by the taxpayer pursuant to Section 101 of the federal Job Creation and Worker Assistance Act of 2002, Public Law 107-147 with respect to property placed in service during the taxable year;
(2) For taxable years beginning on or after January 1, 2002 but prior to January 1, 2006, a 50% bonus depreciation deduction claimed by the taxpayer pursuant to Section 201 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 with respect to property placed in service during the taxable year; and
(3) For taxable years beginning on or after January 1, 2003 but prior to January 1, 2008, the increase in aggregate cost under Section 179 of the Code arising from amendments to the Code applicable to tax years beginning on or after January 1, 2003 pursuant to Section 202 of the federal Jobs and Growth Tax Relief Reconciliation Act of 2003, Public Law 108-27 or pursuant to Section 201 of the federal American Jobs Creation Act of 2004, Public Law 108-357;
Sec. A-16. 36 MRSA §5203-B, as amended by PL 2003, c. 673, Pt. JJ, §2 and affected by §6, is repealed.
Sec. A-17. 36 MRSA §5203-C, as amended by PL 2005, c. 618, §§7 and 8 and affected by §22, is further amended to read:
§ 5203-C. State minimum tax
(1) For taxable corporations with income from business activity that is taxable both within and without this State, "alternative minimum taxable income" means tentative alternative minimum taxable income less the applicable exemption amount, the result of which is multiplied by the fraction described in section 5211, subsection 8; or
(2) For nonresident estates and trusts with income derived from Maine sources, "alternative minimum taxable income" means tentative alternative minimum taxable income less the applicable exemption amount, the result of which is multiplied by a fraction, the numerator of which is the taxpayer's tentative alternative minimum taxable income from Maine sources and the denominator of which is the taxpayer's total tentative alternative minimum taxable income from all sources.
(1) For resident individuals, estates and trusts, the amount derived by multiplying the applicable tax rate or rates by taxable income under section 5121 or 5163;
(2) For nonresident individuals, estates and trusts, the amount derived by multiplying the applicable tax rate or rates by taxable income under section 5121 or 5175, the result of which is adjusted for nonresident individuals in accordance with section 5111, subsection 4; or
(3) For taxable corporations, the amount derived by multiplying the applicable tax rate or rates against Maine net income under section 5102, subsection 8.
(1) Reduced by income that states are prohibited under federal law from subjecting to income tax to the extent included in federal alternative minimum taxable income;
(2) Reduced by income, loss or deductions by which the State decreases federal adjusted gross income in the case of individuals or federal taxable income in the case of corporations, estates and trusts under section 5122, section 5125, subsection 3 or section 5164, 5176 or 5200-A or as otherwise indicated by law to the extent included in federal alternative minimum taxable income; and
(3) Increased by income, loss or deductions by which the State increases federal adjusted gross income in the case of individuals or federal taxable income in the case of corporations, estates and trusts under section 5122, section 5125, subsection 3 or section 5164, 5176 or 5200-A or as otherwise indicated by law to the extent not included in federal alternative minimum taxable income.
(1) Except as provided in subparagraph (2), in the case of a taxpayer other than a taxable corporation, the sum of:
(a) An amount equal to 7% of so much of the alternative minimum taxable income as does not exceed $175,000; plus
(b) An amount equal to 7.6% percent of so much of the alternative minimum taxable income as exceeds $175,000.
For a nonresident individual, the tentative minimum tax must be adjusted in accordance with section 5111, subsection 4.
(2) In the case of a married individual filing a separate return, the sum of:
(a) An amount equal to 7% of so much of the alternative minimum taxable income as does not exceed $87,500; plus
(b) An amount equal to 7.6% percent of so much of the alternative minimum taxable income as exceeds $87,500.
For a nonresident individual, the tentative minimum tax must be adjusted in accordance with section 5111, subsection 4.
(3) In the case of a taxable corporation, the tentative minimum tax for the taxable year is 5.4% of the alternative minimum taxable income.
Sec. A-18. 36 MRSA §5204, as amended by PL 1987, c. 772, §38, is repealed.
Sec. A-19. 36 MRSA §5204-A, as amended by PL 1993, c. 395, §20, is repealed.
Sec. A-20. 36 MRSA §5216-C, sub-§1, as enacted by PL 1999, c. 475, §6 and affected by §7, is amended to read:
Only one credit may be claimed on each annual income tax return regardless of filing status. The credit allowed under this section may not reduce the tax to less than 0 and must be applied after allowance for all other eligible credits. A taxpayer who claims a credit under this section may not claim an itemized charitable deduction under section 5125 for the amount of the contribution that qualified for the credit.
Sec. A-21. 36 MRSA §5217-A, as amended by PL 2003, c. 673, Pt. JJ, §4 and affected by §6, is further amended to read:
§ 5217-A. Income tax paid to other taxing jurisdiction
A resident individual is allowed a credit against the tax otherwise due under this Part , excluding the tax imposed by section 5203-C, for the amount of income tax imposed on that individual for the taxable year by another state of the United States, a political subdivision of any such state, the District of Columbia or any political subdivision of a foreign country that is analogous to a state of the United States with respect to income subject to tax under this Part that is derived from sources in that taxing jurisdiction. In determining whether income is derived from sources in another jurisdiction, the assessor may not employ the law of the other jurisdiction but shall instead assume that a statute equivalent to section 5142 applies in that jurisdiction. The credit, for any of the specified taxing jurisdictions, may not exceed the proportion of the tax otherwise due under this Part , excluding the tax imposed by section 5203-C, that the amount of the taxpayer's Maine adjusted gross income derived from sources in that taxing jurisdiction bears to the taxpayer's entire Maine adjusted gross income; except that, when a credit is claimed for taxes paid to both a state and a political subdivision of a state, the total credit allowable for those taxes does not exceed the proportion of the tax otherwise due under this Part , excluding the tax imposed by section 5203-C, that the amount of the taxpayer's Maine adjusted gross income derived from sources in the other state bears to the taxpayer's entire Maine adjusted gross income.
Sec. A-22. 36 MRSA §5218-A is enacted to read:
§ 5218-A. Household credit
Sec. A-23. 36 MRSA §5218-B is enacted to read:
§ 5218-B. Alternate calculation of household credit
(1) For individuals filing as single or for married individuals filing separately, $1,300;
(2) For individuals filing as heads of households, $2,000; or
(3) For married individuals filing jointly, $3,000.
Sec. A-24. 36 MRSA §5219-H, sub-§2, as repealed and replaced by PL 2003, c. 673, Pt. F, §1 and affected by §2, is amended to read:
Sec. A-25. 36 MRSA §5219-N, as amended by PL 2003, c. 673, Pt. JJ, §5 and affected by §6, is repealed.
Sec. A-26. 36 MRSA §5224-A, as amended by PL 1989, c. 596, Pt. J, §5, is further amended to read:
§ 5224-A. Tax return of part-year resident
If an individual changes that individual's status as a resident individual or nonresident individual during the taxable year, the individual shall file a nonresident return pursuant to section 5220, subsection 2. That individual's tax shall must be computed, pursuant to section 5111 , subsection 4, as if that individual were a nonresident individual, except that the numerator of the apportionment ratio shall be is comprised of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph A, for the portion of the taxable year during which that individual was a resident, plus that individual's Maine adjusted gross income as defined in section 5102, subsection 1-C, paragraph B, for the portion of the taxable year during which that individual was a nonresident. The part-year resident shall is also be entitled to the credit provided by section 5217-A, computed as if the individual's Maine adjusted gross income for the entire year were comprised only of that portion which is attributed to the portion of the year during which that individual was a resident.
Sec. A-27. 36 MRSA §5250, sub-§2, as amended by PL 1997, c. 668, §§36 and 37, is repealed.
Sec. A-28. 36 MRSA §5250, sub-§5 is enacted to read:
Sec. A-29. 36 MRSA §5275, sub-§1, as enacted by P&SL 1969, c. 154, §F, is amended to read:
Sec. A-30. 36 MRSA §5275, sub-§2, as amended by PL 1979, c. 378, §44, is repealed.
Sec. A-31. 36 MRSA §5401, as enacted by IB 1983, c. 2, §4, is amended to read:
§ 5401. Findings and purpose
Inflation erodes the value of personal exemptions and deductions provisions in the Maine individual income tax structure intended to moderate the impact of state and local taxes and distorts fiscal equity among taxpayers. Inflation-induced increases in individual income tax revenues result in annual collections that exceed the amounts anticipated by legislative actions establishing rates, exemptions, deductions and other features of the Maine individual income tax. Furthermore, the income tax laws of this State, in combination with economic inflation, have caused inequitable treatment of the taxpayers because the application of inflexible, statutorily prescribed rates of tax, standard deduction and personal exemption to increasing personal incomes has resulted in increasing the taxpayer's tax liability while the taxpayers taxpayer's purchasing power has remained the same or, in some instances , has decreased. It is the purpose of this Act to correct this situation by requiring that certain components of the individual income tax structure be adjusted in order to compensate for the impact of inflation.
Sec. A-32. 36 MRSA §5403, as repealed and replaced by PL 1999, c. 731, Pt. T, §10 and affected by §11, is amended to read:
§ 5403. Annual adjustments for inflation
Beginning in 2002 2009, and each subsequent calendar year thereafter, on or about September 15th, the State Tax Assessor shall multiply the cost-of-living adjustment for taxable years beginning in the succeeding calendar year by the dollar amounts of the tax rate tables specified in section 5111, subsections 1-B, 2-B and 3-B household credit amounts under section 5218-A, subsections 2 and 3, the credit phaseout thresholds under section 5218-A, subsection 4 and the maximum alternate household credit amounts under section 5218-B, subsection 3, paragraph B. If the dollar amounts of each rate bracket for each household credit amount under section 5218-A, subsections 2 and 3, credit threshold amount under 5218-A, subsection 4 or maximum alternate household credit amount under section 5218-B, subsection 3, paragraph B, adjusted by application of the cost-of-living adjustment, are not multiples of $50, any increase must be rounded to the next lowest multiple of $50. If the cost-of-living adjustment for any taxable year is 1.000 or less, no adjustment may be made for that taxable year in the dollar bracket amounts of the tax rate tables. The assessor shall incorporate such changes into the income tax forms, instructions and withholding tables for the taxable year.
Sec. A-33. Reserve for conformity. At the end of fiscal year 2007-08, the State Controller shall reserve in a separate account the amount of $6,400,000 from the unappropriated surplus of the General Fund to fund conformity with the United States Internal Revenue Code with regard to Section 179 business expensing. The State Controller shall transfer from the reserve for conformity to the General Fund unappropriated surplus in fiscal years 2008-09 and 2009-10 amounts certified by the State Tax Assessor as the net reduction of General Fund revenue from income tax conformity identified in this section.
Sec. A-34. Effective date; application. This Part takes effect January 1, 2008 and applies to income tax years beginning on or after January 1, 2008.
PART B
Sec. B-1. 36 MRSA §683, sub-§1, as repealed and replaced by PL 2005, c. 2, Pt. F, §1 and affected by §5, is amended to read:
Sec. B-2. Application. This Part applies to taxes based on the status of property on or after April 1, 2008.
Sec. B-3. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Homestead Property Tax Exemption Reimbursement 0886
Initiative: Provides funds to reimburse municipalities for 50% of the estimated property tax revenue loss that results from the increase in the homestead exemption.
GENERAL FUND | 2007-08 | 2008-09 |
All Other
|
$0 | $31,641,000 |
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GENERAL FUND TOTAL | $0 | $31,641,000 |
PART C
Sec. C-1. 36 MRSA §6201, sub-§1, as amended by PL 2005, c. 2, Pt. E, §1 and affected by §§7 and 8, is further amended to read:
Sec. C-2. 36 MRSA §6201, sub-§2, as amended by PL 2001, c. 396, §40, is repealed and the following enacted in its place:
Regardless of how many names of individuals appear on the property deed, the person who meets the qualifications described in this subsection and proves sole responsibility for the payment of the property taxes on the subject property is the claimant with respect to that property. If 2 or more individuals meet the qualifications in this subsection and share the payment of rent or responsibility for the payment of property taxes, each individual may apply on the basis of rent paid or the property taxes levied on the homestead that reflect the ownership percentage of the claimant and the claimant's household. If 2 or more individuals claim the same property, the matter must be referred to the assessor, whose decision is final.
Ownership of a homestead under this chapter may be by fee, by life tenancy, by bond for deed, as mortgagee or by any other possessory interest in which the owner is personally responsible for the tax for which a refund is claimed.
Sec. C-3. 36 MRSA §6201, sub-§5, as amended by PL 1995, c. 368, Pt. CCC, §7 and affected by §11, is further amended to read:
Sec. C-4. 36 MRSA §6201, sub-§7, as enacted by PL 1987, c. 516, §§3 and 6, is amended to read:
Sec. C-5. 36 MRSA §6201, sub-§10, as amended by PL 1997, c. 504, §20, is further amended to read:
Sec. C-6. 36 MRSA §6201-A, as amended by PL 2005, c. 618, §18, is further amended to read:
§ 6201-A. Short title
This chapter may be known and may be cited as the " Maine Residents Property Tax Program Property Tax and Rent Refund Program" and may be referred to as "the Circuitbreaker Program."
Sec. C-7. 36 MRSA §6207, sub-§1, ¶A-1, as amended by PL 2005, c. 2, Pt. E, §4 and affected by §§7 and 8, is further amended to read:
Sec. C-8. 36 MRSA §6207, sub-§1, ¶A-2 is enacted to read:
Sec. C-9. 36 MRSA §6210, 2nd ¶, as amended by PL 2005, c. 218, §59, is further amended to read:
The assessor shall include a checkoff to request an application for the Maine Residents Property Tax Program Property Tax and Rent Refund Program on the individual income tax form. The assessor shall also provide a paperless option for filing an application for the Maine Residents Property Tax Program Property Tax and Rent Refund Program.
Sec. C-10. 36 MRSA §6218, as enacted by PL 1989, c. 534, Pt. A, §10, is amended to read:
§ 6218. Readability; application; instructions
The application form and instructions used by applicants for assistance under the Maine Residents Property Tax Program Property Tax and Rent Refund Program and its successor, if any, shall have a readability score, as determined by a recognized instrument for measuring adult literacy levels, equivalent to no higher than a 6th grade reading level.
Sec. C-11. 36 MRSA §6219, as amended by PL 1997, c. 526, §14, is further amended to read:
§ 6219. Outreach plan required
The Bureau of Revenue Services shall develop and implement a plan of outreach to ensure that all eligible households are made aware of assistance available under the Maine Residents Property Tax Program Property Tax and Rent Refund Program and its successor, if any.
Sec. C-12. 36 MRSA §6220, as amended by PL 1997, c. 668, §40, is further amended to read:
§ 6220. Coordination required
The bureau shall seek the advice and cooperation of the Bureau of Elder and Adult Services; the Bureau of Family Independence; the Bureau of Child and Family Services; advocates for elderly and low-income individuals; and other interested agencies and organizations in developing the application form and instruction booklet for the Maine Residents Property Tax Program Property Tax and Rent Refund Program and the outreach plan required by section 6219.
Sec. C-13. Maine Revised Statutes headnote amended; revision clause. In the Maine Revised Statutes, Title 36, chapter 907, in the chapter headnote, the words "Maine residents property tax program" are amended to read "property tax and rent refund program" and the Revisor of Statutes shall implement this revision when updating, publishing or republishing the statutes.
Sec. C-14. Information with refund payments. The State Tax Assessor shall prepare a plan to provide information about state tax relief efforts with refund payments under the Property Tax and Rent Refund Program beginning with the application period that begins August 1, 2008. The plan must identify options for providing information to refund recipients about the amount of property tax relief provided by the State under the program and other relief provided by the State, including the homestead exemption, state-municipal revenue sharing and state funding for local education. Options may include providing information on payment check forms and separate inclusions with refund check mailings. All options must provide information in an easily understandable format and may include graphical representations as appropriate. The State Tax Assessor shall submit the plan to the Joint Standing Committee on Taxation by February 1, 2008. The committee may submit legislation necessary to implement a plan.
Sec. C-15. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services - Bureau of 0002
Initiative: Provides funds for marketing efforts to increase taxpayer awareness about tax relief programs.
GENERAL FUND | 2007-08 | 2008-09 |
All Other
|
$300,000 | $200,000 |
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GENERAL FUND TOTAL | $300,000 | $200,000 |
PART D
Sec. D-1. 36 MRSA §6251, sub-§1, as repealed and replaced by PL 1993, c. 395, §31, is amended to read:
The municipal assessor shall forward each claim filed under this subsection to the bureau within 30 days of receipt and the bureau shall determine if the property is eligible for deferral.
Claims from new applicants may not be filed pursuant to this chapter prior to January 1, 1994. For purposes of this section, "new applicants" means any person or persons that have not filed claims prior to April 1, 1991.
Sec. D-2. 36 MRSA §6251, sub-§2, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to read:
Sec. D-3. 36 MRSA §6253, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to read:
§ 6253. Claim forms; contents
Sec. D-4. 36 MRSA §6254, sub-§1, as repealed and replaced by PL 1989, c. 713, §4, is amended to read:
When the circumstances listed in section 6259, subsection 4 occur, the amount of deferred taxes is due and payable 5 days before the date of removal of the property from the State.
If the deferred tax liability of a property has not been satisfied by the April 30th demand date, the State Tax Assessor shall, within 30 days, record in the registry of deeds in the county where the real estate is located a tax lien certificate signed by the State Tax Assessor or bearing the assessor's facsimile signature, setting forth the total amount of deferred tax liability, a description of the real estate on which the tax was deferred and an allegation that a tax lien is claimed on the real estate to secure payment of the tax, that a demand for payment of the tax has been made in accordance with this section and that the tax remains unpaid.
At the time of the recording of the tax lien certificate in the registry of deeds, the State Tax Assessor shall send by certified mail, return receipt requested, to each record holder of a mortgage on the real estate, to the holder's last known address, a true copy of the tax lien certificate. The cost to be paid by the property owner, or the owner's heirs or devisees, is the sum of the fees for recording and discharging of the lien as established by Title 33, section 751, subsection 10, plus $13. Upon redemption, the State Tax Assessor shall prepare and record a discharge of the tax lien mortgage. The lien described in section 552 is the basis of this tax lien mortgage procedure.
The filing of the tax lien certificate, provided for in this section, in the registry of deeds creates a mortgage on the real estate to the State and has priority over all other mortgages, liens, attachments and encumbrances of any nature and gives to the State all rights usually instant to a mortgage, except that the mortgagee does not have any right of possession of the real estate until the right of redemption expires.
Payments accepted during the redemption period may not interrupt or extend the redemption period or in any way affect the foreclosure procedures.
Sec. D-5. 36 MRSA §6255, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to read:
Sec. D-6. 36 MRSA §6266, sub-§1, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to read:
Sec. D-7. 36 MRSA §6267, as enacted by PL 1993, c. 707, Pt. G, §10, is repealed.
Sec. D-8. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Elderly Tax Deferral Program 0650
Initiative: Provides funds for the Elderly Tax Deferral program.
GENERAL FUND | 2007-08 | 2008-09 |
All Other
|
$0 | $492,000 |
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GENERAL FUND TOTAL | $0 | $492,000 |
PART E
Sec. E-1. 5 MRSA §13090-K, sub-§2, as enacted by PL 2001, c. 439, Pt. UUUU, §1, is amended to read:
Sec. E-2. 10 MRSA §1305, as amended by PL 1997, c. 668, §1, is further amended to read:
§ 1305. Terminal rental adjustment clauses; vehicle leases that are not sales or security interests
Notwithstanding any other provision of law, in the case of motor vehicles or trailers, a transaction does not create a sale or security interest merely because the agreement provides that the rental price is permitted or required to be adjusted upward or downward by reference to the amount realized upon sale or other disposition of the motor vehicle or trailer. A transaction may be considered a sale for purposes of Title 36.
Sec. E-3. 30-A MRSA §5681, sub-§5, as amended by PL 2007, c. 240, Pt. S, §§1 and 2, is further amended to read:
Sec. E-4. 36 MRSA §1752, sub-§1-I is enacted to read:
Sec. E-5. 36 MRSA §1752, sub-§1-J is enacted to read:
Sec. E-6. 36 MRSA §1752, sub-§2-D is enacted to read:
Sec. E-7. 36 MRSA §1752, sub-§3-B, as amended by PL 1999, c. 698, §1 and affected by §3, is further amended to read:
"Grocery staples" does not include spirituous, malt or vinous liquors; soft drinks, iced tea, sodas or beverages such as are ordinarily dispensed at bars or soda fountains or in connection with bars or soda fountains alcoholic beverages; medicines, tonics, vitamins and preparations in liquid, powdered, granular, tablet, capsule, lozenge or pill form, sold as dietary supplements or adjuncts, except when sold on the prescription of a physician; water, including mineral bottled and carbonated waters and ice; dietary substitutes; candy and confections; and prepared food.
Sec. E-8. 36 MRSA §1752, sub-§4-A is enacted to read:
Sec. E-9. 36 MRSA §1752, sub-§5-C is enacted to read:
(1) Any transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments;
(2) Any transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price that does not exceed the greater of $100 and 1% of the total required payments; or
(3) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For the purpose of this paragraph, an operator must do more than maintain, inspect or set up the tangible personal property.
Sec. E-10. 36 MRSA §1752, sub-§8-A, as repealed and replaced by PL 2001, c. 439, Pt. TTTT, §1 and affected by §3, is amended to read:
(1) Candy and confections, including, but not limited to, marshmallows and marshmallow creme or fluff;
(2) Soft drinks;
(3) Sandwiches and prepared salads;
(4) Supplemental meal items such as corn chips, potato chips and crisped vegetable or fruit chips, pork rinds, pretzels, crackers, popped popcorn, cheese sticks and cheese puffs;
(5) Fruit bars, granola bars, breakfast bars, rice cakes, bread sticks and dried sugared fruit;
(6) Roasted nuts and seeds;
(7) Desserts and bakery items, including, but not limited to, doughnuts, cookies, pastries, toaster pastries, croissants, cakes, pies, ice cream cones, ice cream, ice milk, frozen confections, frozen yogurt, sherbet, ready-to-eat pudding and gelatins and dessert sauces; and
(8) Meat jerky, meat bars and dips.
"Prepared food" does not include bulk sales of grocery staples.
As used in this subsection, "without further preparation" means that the product does not require boiling, frying, grilling, baking or cooking of any kind or is not mixed with other products before being boiled, fried, grilled, baked or cooked and "without further preparation" does not include toasting, microwaving or otherwise heating a product for palatability rather than for the purpose of cooking the product.
Sec. E-11. 36 MRSA §1752, sub-§8-C is enacted to read:
Sec. E-12. 36 MRSA §1752, sub-§8-D is enacted to read:
Sec. E-13. 36 MRSA §1752, sub-§9-E is enacted to read:
Sec. E-14. 36 MRSA §1752, sub-§11, as amended by PL 2005, c. 218, §§14 and 15, is further amended to read:
(1) Conditional sales, installment lease sales and any other transfer of tangible personal property when the title is retained as security for the payment of the purchase price and is intended to be transferred later; and
(2) Sale of products for internal human consumption to a person for resale through vending machines when sold to a person more than 50% of whose gross receipts from the retail sale of tangible personal property are derived from sales through vending machines. The tax must be paid by the retailer to the State.
(1) Any casual sale;
(2) Any sale by a personal representative in the settlement of an estate, unless the sale is made through a retailer, or unless the sale is made in the continuation or operation of a business; or
(3) The sale, to a person engaged in the business of renting automobiles, of automobiles, integral parts of automobiles or accessories to automobiles, for rental or for use in an automobile rented on a short-term basis;
(4) The sale, to a person engaged in the business of renting video media and video equipment, of video media or video equipment for rental;
(5) The sale, to a person engaged in the business of renting or leasing automobiles, of automobiles for rental or lease for one year or more;
(6) The sale, to a person engaged in the business of providing cable or satellite television services, of associated equipment for rental or lease to subscribers in conjunction with a sale of extended cable or extended satellite television services; or
(7) The sale, to a person engaged in the business of renting furniture, or audio media and audio equipment, of furniture, audio media or audio equipment for rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 11-105.
(8) The sale, to a person engaged in the business of renting or leasing tangible personal property, of tangible personal property for lease or rental.
Sec. E-15. 36 MRSA §1752, sub-§13, as amended by PL 1981, c. 706, §20, is further amended to read:
Sec. E-16. 36 MRSA §1752, sub-§14, ¶B, as amended by PL 2005, c. 675, §1 and affected by §2, is further amended to read:
(1) Discounts allowed and taken on sales;
(2) Allowances in cash or by credit made upon the return of merchandise pursuant to warranty;
(3) The price of property returned by customers, when the full price is refunded either in cash or by credit;
(4) The price received for labor or services used in installing or applying or repairing the property sold, if separately charged or stated;
(5) Any amount charged or collected, in lieu of a gratuity or tip, as a specifically stated service charge, when that amount is to be disbursed by a hotel, motel, restaurant or other eating establishment to its employees as wages;
(6) The amount of any tax imposed by the United States on or with respect to retail sales, whether imposed upon the retailer or the consumer, except any manufacturers', importers', alcohol or tobacco excise tax;
(7) The cost of transportation from the retailer's place of business or other point from which shipment is made directly to the purchaser, provided that those charges are separately stated and the transportation occurs by means of common carrier, contract carrier or the United States mail;
(8) The fee imposed by Title 10, section 1169, subsection 11;
(9) The fee imposed by section 4832, subsection 1;
(10) The lead-acid battery deposit imposed by Title 38, section 1604, subsection 2-B; or
(11) Any amount charged or collected by a person engaged in the rental of living quarters as a forfeited room deposit or cancellation fee if the prospective occupant of the living quarters cancels the reservation on or before the scheduled date of arrival.
Sec. E-17. 36 MRSA §1752, sub-§14-G is enacted to read:
Sec. E-18. 36 MRSA §1752, sub-§17-B, as enacted by PL 2003, c. 673, Pt. V, §19 and affected by §29, is repealed and the following enacted in its place:
Sec. E-19. 36 MRSA §1752, sub-§19-A is enacted to read:
Sec. E-20. 36 MRSA §1752, sub-§21, as amended by PL 2005, c. 215, §17, is further amended to read:
Sec. E-21. 36 MRSA §1754-B, sub-§1, ¶C, as enacted by PL 1995, c. 640, §3, is amended to read:
Sec. E-22. 36 MRSA §1758, as repealed and replaced by PL 1999, c. 708, §24, is repealed.
Sec. E-23. 36 MRSA §1760, sub-§6, ¶D, as amended by PL 1999, c. 502, §2, is further amended to read:
Sec. E-24. 36 MRSA §1760, sub-§6, ¶E, as enacted by PL 1999, c. 502, §3, is amended to read:
Sec. E-25. 36 MRSA §1760, sub-§6, ¶F is enacted to read:
Sec. E-26. 36 MRSA §1760, sub-§14 is repealed.
Sec. E-27. 36 MRSA §1760, sub-§24, is amended to read:
Sec. E-28. 36 MRSA §1760, sub-§32-A is enacted to read:
Sec. E-29. 36 MRSA §1760, sub-§34, as amended by PL 2005, c. 218, §23, is repealed.
Sec. E-30. 36 MRSA §1760, sub-§45, as amended by PL 2005, c. 519, Pt. EE, §1 and affected by §3, is further amended to read:
Property, other than automobiles, watercraft, snowmobiles, all-terrain vehicles and aircraft, that is required to be registered for use in this State does not qualify for this exemption unless it was registered by its present owner outside this State more than 12 months prior to its registration in this State. If property required to be registered for use in this State was not required to be registered for use outside this State, the owner must be able to document actual use of the property outside this State for more than 12 months prior to its registration in this State. For purposes of this subsection, "use" does not include storage but means actual use of the property for a purpose consistent with its design. This exemption does not apply to leased property.
Notwithstanding section 1752-A, "resident" may include an individual, an association, a society, a club, a general partnership, a limited partnership, a limited liability company, a trust, an estate, a corporation and any other legal entity.
Sec. E-31. 36 MRSA §1760, sub-§90 is enacted to read:
Sec. E-32. 36 MRSA §1760-C, as amended by PL 2005, c. 622, §9, is further amended to read:
§ 1760-C. Exempt activities
The tax exemptions provided by section 1760 to a person based upon its charitable, nonprofit or other public purposes apply only if the property or service purchased is intended to be used by the person primarily in the activity identified by the particular exemption. The tax exemptions provided by section 1760 to a person based upon its charitable, nonprofit or other public purposes do not apply where title is held or taken by the person as security for any financing arrangement. Exemption certificates issued by the State Tax Assessor pursuant to section 1760 must identify the exempt activity and must state that the certificate may be used by the holder only when purchasing property or services intended to be used by the holder primarily in the exempt activity. When an otherwise qualifying person is engaged in both exempt and nonexempt activities, an exemption certificate may be issued to the person only if the person has established to the satisfaction of the assessor that the applicant has adequate accounting controls to limit the use of the certificate to exempt purchases. The tax exemptions provided by section 1760 to a person based upon its charitable, nonprofit or other public purposes do not apply to the sale of meals or lodging or the rental of automobiles.
Sec. E-33. 36 MRSA §1811, first ¶, as amended by PL 2001, c. 439, Pt. TTTT, §2 and affected by §3, is further amended to read:
A tax is imposed on the value of all tangible personal property and taxable services sold at retail in this State. The rate of tax is 7% 8% on the value of liquor sold in licensed establishments as defined in Title 28-A, section 2, subsection 15, in accordance with Title 28-A, chapter 43; 7% 8% on the value of rental of living quarters in any hotel, rooming house or tourist or trailer camp; 10% 15% on the value of rental for a period of less than one year of an automobile; 7% 8% on the value of prepared food; and 5% on the value of all other tangible personal property and taxable services. Value is measured by the sale price, except as otherwise provided.
Sec. E-34. 36 MRSA §1811, 3rd ¶, as repealed and replaced by PL 2003, c. 510, Pt. C, §12 and affected by §13, is repealed.
Sec. E-35. 36 MRSA §1812, sub-§1, as reallocated by PL 1999, c. 790, Pt. A, §48, is repealed and the following enacted in its place:
Sec. E-36. 36 MRSA §1812, sub-§2, as amended by PL 1991, c. 846, §24, is further amended to read:
Sec. E-37. 36 MRSA §1817 is enacted to read:
§ 1817. Accelerated payment of tax on leases and rentals
The tax imposed by this Part on the rental or lease of tangible personal property must be collected by the lessor at the time the property that is the subject of the lease is delivered to the lessee or at the time the initial payment under the lease is required to be made by the lessee, whichever is earlier, on the basis of the total amount of the consideration to be paid by the lessee under the terms of the lease agreement. If the total amount of the consideration for the lease includes amounts that are not calculated at the time the lease is executed, the tax attributable to those amounts must be collected by the lessor at the time those amounts are billed to the lessee. In the case of an open-end lease, the tax must be collected by the lessor on the basis of the total amount to be paid during the initial fixed term of the lease, and then for each subsequent renewal period as it comes due. For purposes of this section, "consideration" includes, without limitation, the amount of any down payment, trade-in credit or 3rd-party rebate that is applied to reduce the cost of the leased property upon which the lease payments are computed. Collection and remittance of the tax is the responsibility of the person that negotiates the lease transaction with the lessee.
Sec. E-38. 36 MRSA §1861, as amended by PL 1995, c. 640, §6, is further amended to read:
§ 1861. Imposition
A tax is imposed, at the respective rate provided in section 1811, on the storage, use or other consumption in this State of tangible personal property or a taxable service, the sale of which would be subject to tax under section 1764 or 1811. Every person so storing, using or otherwise consuming is liable for the tax until the person has paid the tax or has taken a receipt from the seller, as duly authorized by the assessor, showing that the seller has collected the sales or use tax, in which case the seller is liable for it. Retailers registered under section 1754-B or 1756 shall collect the tax and make remittance to the assessor. The amount of the tax payable by the purchaser is that provided in the case of sales taxes by section 1812. When tangible personal property is leased outside the State and subsequently brought into the State, the tax due under this section is the proportion of the tax otherwise due under this Part that the remaining portion of the lease bears to the entire term of the lease. When tangible personal property purchased for resale is withdrawn from inventory by the retailer for the retailer's own use, use tax liability accrues at the date of withdrawal.
Sec. E-39. 36 MRSA §1862, as amended by PL 1987, c. 772, §24, is further amended to read:
§ 1862. Taxes paid in other jurisdictions
The use tax provisions of chapters 211 to 225 shall imposed by this Part does not apply with respect to the use, storage or other consumption in this State of purchases outside the State where the purchaser has paid a sales or use tax equal to or greater than the amount imposed by chapters 211 to 225 this Part in another taxing jurisdiction , the proof of payment of the tax to be according to rules made by the State Tax Assessor. If the amount of sales or use tax paid in another taxing jurisdiction is not equal to or greater than the amount of tax imposed by chapters 211 to 225 this Part, then the purchaser shall pay to the State Tax Assessor an amount sufficient to make the total amount of tax paid in the other taxing jurisdiction and in this State equal to the amount imposed by chapters 211 to 225 this Part. When tangible personal property is leased outside the State and subsequently brought into the State, the credit allowed under this section may not exceed the proportion of the tax otherwise due under this Part that the period for which the property was leased in the other taxing jurisdiction bears to the entire term of the lease.
Sec. E-40. 36 MRSA §2018 is enacted to read:
§ 2018. Removal from the State of leased property
If leased property with respect to which the tax imposed by this Part has been paid on an accelerated basis is permanently removed from the State, the lessee is entitled to a refund of the tax allocable to that portion of the lease that remains in effect after the property has been removed from the State. A refund may not be issued unless the taxing jurisdiction to which the property is removed allows a corresponding refund with respect to the lease of property upon which a sales or use tax was due and has been paid in this State. A refund may not be issued if the other taxing jurisdiction allows a credit to the lessee for the sales or use tax paid in this State on the lease transaction. The refund must be requested in accordance with the provisions of section 2011.
Sec. E-41. 36 MRSA §2551, sub-§1, as enacted by PL 2003, c. 673, Pt. V, §25 and affected by §29, is repealed.
Sec. E-42. 36 MRSA §2551, sub-§1-C is enacted to read:
Sec. E-43. 36 MRSA §2551, sub-§1-D is enacted to read:
Sec. E-44. 36 MRSA §2551, sub-§1-E is enacted to read:
Sec. E-45. 36 MRSA §2551, sub-§1-F is enacted to read:
Sec. E-46. 36 MRSA §2551, sub-§2, as amended by PL 2005, c. 12, Pt. TTT, §2 and affected by §4, is further amended to read:
"Minimum service" means the least amount of service marketed by the supplier to the general public.
Sec. E-47. 36 MRSA §2551, sub-§4, as enacted by PL 2003, c. 673, Pt. V, §25 and affected by §29, is repealed.
Sec. E-48. 36 MRSA §2551, sub-§7, as enacted by PL 2003, c. 673, Pt. V, §25 and affected by §29, is repealed.
Sec. E-49. 36 MRSA §2551, sub-§20, as enacted by PL 2003, c. 673, Pt. V, §25 and affected by §29, is repealed.
Sec. E-50. 36 MRSA §2551, sub-§20-A is enacted to read:
Sec. E-51. 36 MRSA §2551, sub-§20-B is enacted to read:
Sec. E-52. 36 MRSA §2551, sub-§21, as enacted by PL 2003, c. 673, Pt. V, §25 and affected by §29, is repealed.
Sec. E-53. 36 MRSA §2551, sub-§22 is enacted to read:
Sec. E-54. 36 MRSA §2552, sub-§1, as amended by PL 2005, c. 386, Pt. S, §§4 to 6 and affected by §9, is further amended to read:
Sec. E-55. 36 MRSA §2557, sub-§30, as amended by PL 2005, c. 218, §35, is further amended to read:
Sec. E-56. 36 MRSA §2557, sub-§31, as amended by PL 2005, c. 622, §12, is further amended to read:
Sec. E-57. 36 MRSA §2557, sub-§32 is enacted to read:
Sec. E-58. 36 MRSA §2559, as amended by PL 2005, c. 386, Pt. S, §7 and affected by §9, is further amended to read:
§ 2559. Application of revenues
Revenues derived by the tax imposed by this chapter must be credited to a General Fund suspense account. On or before the last day of each month, the State Controller shall transfer a percentage of the revenues received by the State Tax Assessor during the preceding month pursuant to the tax imposed by section 2552, subsection 1, paragraphs A to F and L and M to the Local Government Fund as provided by Title 30-A, section 5681, subsection 5. The balance remaining in the General Fund suspense account must be transferred to service provider tax General Fund revenue. On or before the 15th day of each month, the State Controller shall transfer all revenues received by the assessor during the preceding month pursuant to the tax imposed by section 2552, subsection 1, paragraphs G to K to the Medical Care Services Other Special Revenue Funds account, the Other Special Revenue Funds Mental Health Services - Community Medicaid program, the Medicaid Services - Mental Retardation program and the Office of Substance Abuse - Medicaid Seed program within the Department of Health and Human Services.
Sec. E-59. Appropriations and allocations. The following appropriations and allocations are made.
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF
Office of Tourism 0577
Initiative: Allocates funds to the Tourism Marketing Promotion Fund due to the increase in certain sales tax revenue.
OTHER SPECIAL REVENUE FUNDS | 2007-08 | 2008-09 |
All Other
|
$0 | $1,001,493 |
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|
OTHER SPECIAL REVENUE FUNDS TOTAL | $0 | $1,001,493 |
PART F
Sec. F-1. 36 MRSA §4641, sub-§2-B is enacted to read:
Sec. F-2. 36 MRSA §4641-A, sub-§1, as enacted by PL 2001, c. 559, Pt. I, §3 and affected by §15, is repealed.
Sec. F-3. 36 MRSA §4641-A, sub-§1-A is enacted to read:
(1) Six-tenths of one percent on the first $250,000 of value;
(2) Eight-tenths of one percent on the next $250,000 of value; and
(3) One percent on the next $500,000 of value.
Sec. F-4. 36 MRSA §4641-A, sub-§2, ¶A, as enacted by PL 2001, c. 559, Pt. I, §3 and affected by §15, is repealed and the following enacted in its place:
Sec. F-5. 36 MRSA §4641-B, sub-§3, as enacted by PL 2001, c. 559, Pt. I, §4 and affected by §15, is repealed and the following enacted in its place:
Sec. F-6. 36 MRSA §4641-B, sub-§4, as amended by PL 2007, c. 240, Pt. H, §1, is further amended to read:
Sec. F-7. Effective date. This Part takes effect October 1, 2007.
PART G
Sec. G-1. 28-A MRSA §1652, sub-§1, as repealed and replaced by PL 1987, c. 342, §116, is amended to read:
Sec. G-2. 28-A MRSA §1652, sub-§1-A, as amended by PL 1993, c. 462, §7, is further amended to read:
Sec. G-3. 28-A MRSA §1652, sub-§2, as amended by PL 1997, c. 767, §4, is further amended to read:
PART H
Sec. H-1. 5 MRSA §1518-A, as enacted by PL 2005, c. 2, Pt. A, §4 and affected by §14, is amended to read:
§ 1518-A. Tax Relief Fund for Maine Residents
PART I
Sec. I-1. 30-A MRSA §5686 is enacted to read:
§ 5686. Local sales tax increment disbursement
PART J
Sec. J-1. Taxpayer information. The State Tax Assessor shall develop and make available to taxpayers in a format that can be easily understood by the average citizen a summary of the major changes to the State's tax structure contained in this Act, including information in the format of a brochure that can be made available to inform citizens of the changes. The analysis must identify changes in the impact of Maine's tax structure on Maine families and comparisons with the tax structure of representative states of a size and economy similar to that of Maine.
PART K
Sec. K-1. 36 MRSA §684, sub-§1, as enacted by PL 1997, c. 643, Pt. HHH, §3 and affected by §10, is amended to read:
Sec. K-2. 36 MRSA §949 is enacted to read:
§ 949. Suspension of foreclosure for homesteads of persons 65 years of age or older
Notwithstanding the other provisions of this subchapter, a tax lien mortgage may not be foreclosed with respect to the homestead as defined in section 681 of a person who is 65 years of age or older who has been a resident in the homestead for 10 years or longer until the real estate is transferred by deed or at the death of the person eligible for the suspension of foreclosure provided in this section. Liens on the real estate continue in effect until the death of the property owner or the property is otherwise transferred, and interest on the unpaid taxes continues to accrue until the lien is satisfied.
PART L
Sec. L-1. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services - Bureau of 0002
Initiative: Provides funds for Maine Revenue Services administrative costs related to the changes to several taxes, including funds for 2 Office Assistant II positions and one Accounting Associate II position effective October 1, 2007, one Accounting Associate II position and 2 Tax Examiner positions effective July 1, 2008 and 2 Tax Examiner positions effective January 1, 2009.
GENERAL FUND | 2007-08 | 2008-09 |
POSITIONS - LEGISLATIVE COUNT
|
3.000 | 8.000 |
Personal Services
|
$108,698 | $381,530 |
All Other
|
$686,466 | $489,026 |
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|
GENERAL FUND TOTAL | $795,164 | $870,556 |
summary
This bill represents the work of the Joint Standing Committee on Taxation to reform Maine’s tax structure and reduce the burden of taxes on Maine residents. This bill reduces taxes on Maine families by over $140,000,000. The bill contains the following provisions.
Part A makes fundamental changes to simplify and reduce the burden of the State's income tax and create an income tax that is intended to be more beneficial to investment and economic growth in the State. The current structure of 4 tax brackets, personal exemptions and deductions is replaced by a flat rate of 6% on all taxable income. The progressivity of the current income tax is maintained through a household credit that alleviates the impact of the 6% rate on low-income and middle-income households. The corporate income tax is also changed to a flat rate at 8.93%. Conformity with certain federal business expensing and depreciation treatment is provided. The complicated and confusing alternative minimum tax on individuals is repealed.
Part B provides property tax relief by increasing the homestead property tax deduction from $13,000 to $26,000.
Part C provides further property tax relief by making the Property Tax and Rent Refund Program, currently known as "the Maine Residents Property Tax Program" or "the circuitbreaker program," available to a larger number of residents and increasing benefits. It requires the State to make greater efforts to increase awareness of the program and produce greater participation.
Part D provides a process that permits persons 65 years of age or older to defer property taxes on their homesteads. The State would reimburse municipalities for the deferred taxes and acquire a lien on the property to collect what is owed when the property is sold or otherwise transferred.
Part E broadens the sales tax base by including certain services and repealing certain exemptions. Part E also increases the sales tax on prepared food and lodging to 8% and the sales tax on rentals of automobiles of less than one year to 15%.
Part F changes the format for the real estate transfer tax and provides that permanent residences with a value of $1,000,000 or less would be taxed at 0.6% on the first $250,000 of value, 0.8% on the next $250,000 of value and 1% on the next $500,000 of value. Residential property valued at over $1,000,000 would be taxed at 1.5% and all other property would be taxed at 1%.
Part G doubles the excise tax on wine and malt liquor except for malt liquor produced by a manufacturer that produced less than 100,000 barrels in the previous calendar year.
Part H provides that, beginning in fiscal year 2009-10, 15% of growth in sales and income tax would be transferred to the Tax Relief Fund for Maine Residents to be used for tax relief.
Part I provides that, beginning in fiscal year 2009-10, 10% of sales tax revenue growth must be returned to the municipalities where the growth occurred.
Part J requires the Department of Administrative and Financial Services, Bureau of Revenue Services to make information available to citizens that explains the State's tax structure and the changes contained in this Act.
Part K provides that a lien for unpaid property taxes may not be foreclosed against the homestead of a person who is at least 65 years of age and has lived in the homestead for at least 10 years until the property is transferred by deed or upon death. Liens would continue in effect and would accrue interest until the lien is satisfied.
Part L makes appropriations and allocations necessary to implement the bill.