An Act To Modernize State Income Tax Refunds
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5280-A is enacted to read:
§ 5280-A. Refund of income tax overpayments for individuals
1. Debit card. Except as provided in subsection 2, a refund issued to a taxpayer as the result of overpayment or excess withholding of taxes under chapters 803 to 807 must be made in the form of a debit card issued to the taxpayer. The card must be issued without fee to the taxpayer and must permit the taxpayer to withdraw amounts available on the card at automated teller machines or make payments using the card without fees.
2. Exceptions. Notwithstanding subsection 1, a refund may be issued in the following ways:
A. By direct deposit to a financial institution approved by the bureau; or
B. Upon the request of a person 56 years of age or older, in the form of a check.
Sec. 2. Application. This Act applies to income tax refunds issued on or after January 1, 2014.
SUMMARY
This bill provides that, beginning in 2014, individual income tax refunds must be made in the form of a debit card or by direct deposit, or by check if requested by a person 56 years of age or older.