HP1264, LD 1762, item 2, Document Text

Amend the bill by inserting after the enacting clause and before section 1 the following:

‘Sec. 1. 5 MRSA §1518-A, as amended by PL 2011, c. 692, §1, is repealed.

Sec. 2. 5 MRSA §1536, sub-§1, ¶A, as amended by PL 2013, c. 1, Pt. E, §2, is further amended to read:

A. Forty-eight Sixty-eight percent to the stabilization fund; [PL 2013, c. 1, Pt. E, § 2 (AMD).]

Sec. 3. 5 MRSA §1536, sub-§1, ¶¶D and E, as amended by PL 2011, c. 692, §2 and affected by §3, are further amended to read:

D. Nine percent to the Retiree Health Insurance Internal Service Fund established in section 1519 to be used solely for the purpose of amortizing the unfunded actuarial liability associated with future health benefits; and

E. Ten percent to the Capital Construction and Improvements Reserve Fund established in section 1516-A ; and .

Sec. 4. 5 MRSA §1536, sub-§1, ¶F, as enacted by PL 2011, c. 692, §2 and affected by §3, is repealed.

Sec. 5. 5 MRSA §1536, sub-§3, as enacted by PL 2005, c. 2, Pt. A, §5 and affected by §14, is repealed.

Sec. 6. 5 MRSA §13070-J, sub-§1, ¶D, as amended by PL 2011, c. 573, §1, is further amended to read:

D. "Economic development incentive" means federal and state statutorily defined programs that receive state funds, dedicated revenue funds and tax expenditures as defined by section 1666 whose purposes are to create, attract or retain business entities related to business development in the State, including but not limited to:

(1) Assistance from Maine Quality Centers under Title 20-A, chapter 431-A;

(2) The Governor's Jobs Initiative Program under Title 26, chapter 25, subchapter 4;

(3) Municipal tax increment financing under Title 30-A, chapter 206;

(4) The jobs and investment tax credit under Title 36, section 5215;

(5) The research expense tax credit under Title 36, section 5219-K;

(6) Reimbursement for taxes paid on certain business property under Title 36, chapter 915;

(7) Employment tax increment financing under Title 36, chapter 917;

(8) The shipbuilding facility credit under Title 36, chapter 919;

(9) The credit for seed capital investment under Title 36, section 5216-B;

(10) The credit for pollution-reducing boilers under Title 36, section 5219-Z; and

(11) The credit for Maine fishery infrastructure investment under Title 36, section 5216-D.

Sec. 7. 36 MRSA §691, sub-§1, ¶A, as amended by PL 2009, c. 571, Pt. II, §1 and affected by §5, is further amended to read:

A. "Eligible business equipment" means qualified property that, in the absence of this subchapter, would first be subject to assessment under this Part on or after April 1, 2008. "Eligible business equipment" includes, without limitation, repair parts, replacement parts, replacement equipment, additions, accessions and accessories to other qualified business property that first became subject to assessment under this Part before April 1, 2008 if the part, addition, equipment, accession or accessory would, in the absence of this subchapter, first be subject to assessment under this Part on or after April 1, 2008. "Eligible business equipment" also includes inventory parts.

"Eligible business equipment" does not include:

(1) Office furniture, including, without limitation, tables, chairs, desks, bookcases, filing cabinets and modular office partitions;

(2) Lamps and lighting fixtures used primarily for the purpose of providing general purpose office or worker lighting;

(3) Property owned or used by an excluded person;

(4) Telecommunications personal property subject to the tax imposed by section 457;

(5) Gambling machines or devices, including any device, machine, paraphernalia or equipment that is used or usable in the playing phases of any gambling activity as that term is defined in Title 8, section 1001, subsection 15, whether that activity consists of gambling between persons or gambling by a person involving the playing of a machine. "Gambling machines or devices" includes, without limitation:

(a) Associated equipment as defined in Title 8, section 1001, subsection 2;

(b) Computer equipment used directly and primarily in the operation of a slot machine as defined in Title 8, section 1001, subsection 39;

(d) Equipment used in the playing phases of lottery schemes; and

(e) Repair and replacement parts of a gambling machine or device;

(6) Property located at a retail sales facility and used primarily in a retail sales activity unless the property is owned by a business that operates a retail sales facility in the State exceeding 100,000 square feet of interior customer selling space that is used primarily for retail sales and whose Maine-based operations derive less than 30% of their total annual revenue on a calendar year basis from sales that are made at a retail sales facility located in the State. For purposes of this subparagraph, the following terms have the following meanings:

(a) "Primarily" means more than 50% of the time;

(b) "Retail sales activity" means an activity associated with the selection and purchase of goods or services or the rental of tangible personal property. "Retail sales activity" does not include production as defined in section 1752, subsection 9-B; and

(c) "Retail sales facility" means a structure used to serve customers who are physically present at the facility for the purpose of selecting and purchasing goods or services at retail or for renting tangible personal property. "Retail sales facility" does not include a separate structure that is used as a warehouse or call center facility;

(7) Property that is not entitled to an exemption by reason of the additional limitations imposed by subsection 2; or

(8) Personal property that would otherwise be entitled to exemption under this subchapter used primarily to support a telecommunications antenna used by a telecommunications business subject to the tax imposed by section 457.

Sec. 8. 36 MRSA §5111, sub-§1-D, as enacted by PL 2013, c. 368, Pt. Q, §4, is amended to read:

1-D. Single individuals and married persons filing separate returns; tax years beginning 2014. For tax years beginning on or after January 1, 2014, for single individuals and married persons filing separate returns:

If Maine Taxable taxable income is:	The tax is:
At least $5,200 but less than $20,900	6.5% of the excess over $5,200
At least $20,900 or more but less than $289,000	$1,021 plus 7.95% of the excess over $20,900
$289,000 or more	$21,314 plus 8.67% of the excess over $289,000

Sec. 9. 36 MRSA §5111, sub-§2-D, as enacted by PL 2013, c. 368, Pt. Q, §6, is amended to read:

2-D. Heads of households; tax years beginning 2014. For tax years beginning on or after January 1, 2014, for unmarried individuals or legally separated individuals who qualify as heads of households:

If Maine Taxable taxable income is:	The tax is:
At least $7,850 but less than $31,350	6.5% of the excess over $7,850
At least $31,350 or more but less than $289,000	$1,528 plus 7.95% of the excess over $31,350
$289,000 or more	$22,011 plus 8.67% of the excess over $289,000

Sec. 10. 36 MRSA §5111, sub-§3-D, as enacted by PL 2013, c. 368, Pt. Q, §8, is amended to read:

3-D. Individuals filing married joint return or surviving spouses; tax years beginning 2014. For tax years beginning on or after January 1, 2014, for individuals filing married joint returns or surviving spouses permitted to file a joint return:

If Maine Taxable taxable income is:	The tax is:
At least $10,450 but less than $41,850	6.5% of the excess over $10,450
At least $41,850 or more but less than $289,000	$2,041 plus 7.95% of the excess over $41,850
$289,000 or more	$21,689 plus 8.67% of the excess over $289,000

Sec. 11. 36 MRSA §6652, sub-§1-D, as enacted by PL 2005, c. 12, Pt. BBB, §2 and affected by §6, is amended to read:

1-D. Retail sales facilities. Reimbursement pursuant to this chapter may not be made with respect to property that is located in a retail sales facility exceeding 100,000 square feet of interior customer selling space and used primarily in a retail sales activity , unless the facility is owned by a business whose Maine-based operation derives less than 50% of its total annual revenue on a calendar-year basis from sales that are subject to Maine sales tax. This subsection applies to property tax years beginning after April 1, 2006. Property affected by this subsection that was eligible for reimbursement pursuant to this chapter for property taxes paid for the 2006 property tax year is grandfathered into the program and continues to be eligible for reimbursement to the extent permitted by this chapter as it existed on April 1, 2006, unless that property subsequently becomes ineligible.

Sec. 12. 36 MRSA c. 919, as amended, is repealed.

Amend the bill by striking out all of section 2 and inserting the following:

‘Sec. 2. PL 2013, c. 368, Pt. S, §9 is repealed.’

Amend the bill by striking out all of sections 4 and 5 and inserting the following:

‘Sec. 4. Transfer from tax relief fund. The State Controller shall transfer $4,048,846 from the Tax Relief Fund for Maine Residents established in the Maine Revised Statutes, Title 5, section 1518-A to the unappropriated surplus of the General Fund no later June 30, 2015.

Sec. 5. Application. That section of this Act that amends the Maine Revised Statutes, Title 36, section 691, subsection 1, paragraph A applies to property taxes based on the status of the property on or after April 1, 2014. Those sections of this Act that amend Title 36, section 5111, subsections 1-D, 2-D and 3-D apply to tax years beginning on or after January 1, 2014. That section of this Act that amends Title 36, section 6652, subsection 1-D applies to claims for reimbursement for property taxes filed for application periods beginning on or after August 1, 2014.’

Amend the bill by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.

summary

This amendment, like the bill, provides for $40,000,000 in revenue sharing to municipalities and, in addition, offsets the cost of those transfers with the elimination of certain programs or credits and the creation of a new top income tax bracket and rate. This amendment does the following:

1. It retains the provision of the bill that eliminates the reduction of transfers to state-municipal revenue sharing by $40,000,000;

2. It transfers from the Tax Relief Fund for Maine Residents $4,048,846 and eliminates that fund. The 20% transferred from the unappropriated surplus at the close of the fiscal year is added to the amount transferred to the Maine Budget Stabilization Fund;

3. It strikes the portion of the bill that transfers funds from the Maine Budget Stabilization Fund;

4. It repeals the shipbuilding facility credit under the Maine Revised Statutes, Title 36, chapter 919;

5. It eliminates eligibility under the Business Equipment Tax Reimbursement program for property located at a retail sales facility and used primarily in a retail sales activity; and

6. It creates a new individual income tax rate of 8.67% that is imposed on income over $289,000.

FISCAL NOTE REQUIRED

(See attached)

HP1264 LD 1762	Session - 126th Maine Legislature H "B", Filing Number H-603, Sponsored by Stuckey		LR 2721 Item 2
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