An Act To Provide Property Tax Relief to Maine Residents
Sec. 1. 22 MRSA §4301, sub-§7, as amended by PL 2013, c. 368, Pt. OO, §6, is further amended to read:
The following items are not available within the meaning of this subsection and subsection 10:
In determining need, the period of time used as a basis for the calculation is the 30-day period commencing on the date of the application. This prospective calculation does not disqualify an applicant who has exhausted income to purchase basic necessities if that income does not exceed the income standards established by the municipality. Notwithstanding this prospective calculation, if any applicant or recipient receives a lump sum payment prior or subsequent to applying for assistance, that payment must be prorated over future months. The period of proration is determined by disregarding any portion of the lump sum payment that the applicant or recipient has spent to purchase basic necessities, including but not limited to: all basic necessities provided by general assistance; reasonable payment of funeral or burial expenses for a family member; reasonable travel costs related to the illness or death of a family member; repair or replacement of essentials lost due to fire, flood or other natural disaster; repair or purchase of a motor vehicle essential for employment, education, training or other day-to-day living necessities; repayments of loans or credit, the proceeds of which can be verified as having been spent on basic necessities; and payment of bills earmarked for the purpose for which the lump sum is paid. All income received by the household between the receipt of the lump sum payment and the application for assistance is added to the remainder of the lump sum. The period of proration is then determined by dividing the remainder of the lump sum payment by the verified actual monthly amounts for all of the household's basic necessities. That dividend represents the period of proration determined by the administrator to commence on the date of receipt of the lump sum payment. The prorated sum for each month must be considered available to the household for 12 months from the date of application or during the period of proration, whichever is less.
Sec. 2. 36 MRSA §5219-II, first ¶, as enacted by PL 2013, c. 368, Pt. L, §1, is amended to read:
For tax years beginning on or after January 1, 2013 and before January 1, 2014, a Maine resident individual is allowed a property tax fairness credit as computed under this section against the taxes imposed under this Part.
Sec. 3. 36 MRSA §5219-KK is enacted to read:
§ 5219-KK. Property tax fairness credit for tax years beginning on or after January 1, 2014
For tax years beginning on or after January 1, 2014, a Maine resident individual is allowed a property tax fairness credit as computed under this section against the taxes imposed under this Part.
(1) For persons filing as single individuals, $2,000;
(2) For persons filing joint returns or as heads of households that claim no more than 2 personal exemptions, $2,600;
(3) For persons filing joint returns or as heads of households that claim 3 or more personal exemptions, $3,200; and
(4) For married individuals filing separate returns, 1/2 of the amount under subparagraph (2) or (3), whichever would apply if the individual had filed a joint return for the taxable year with the individual's spouse.
(1) Trade or business losses; capital losses; any net loss resulting from combining the income or loss from rental real estate and royalties, the income or loss from partnerships and S corporations, the income or loss from estates and trusts, the income or loss from real estate mortgage investment conduits and the net farm rental income or loss; any loss associated with the sale of business property; and farm losses included in federal adjusted gross income;
(2) Interest received to the extent not included in federal adjusted gross income;
(3) Payments received under the federal Social Security Act and railroad retirement benefits to the extent not included in federal adjusted gross income; and
(4) The following amounts deducted in arriving at federal adjusted gross income:
(a) Educator expenses pursuant to the Code, Section 62(a)(2)(D);
(b) Certain business expenses of performing artists pursuant to the Code, Section 62(a)(2)(B);
(c) Certain business expenses of government officials pursuant to the Code, Section 62(a)(2)(C);
(d) Certain business expenses of reservists pursuant to the Code, Section 62(a)(2)(E);
(e) Health savings account deductions pursuant to the Code, Section 62(a)(16) and Section 62(a)(19);
(f) Moving expenses pursuant to the Code, Section 62(a)(15);
(g) The deductible part of self-employment tax pursuant to the Code, Section 164(f);
(h) The deduction for self-employed SEP, SIMPLE and qualified plans pursuant to the Code, Section 62(a)(6);
(i) The self-employed health insurance deduction pursuant to the Code, Section 162(1);
(j) The penalty for early withdrawal of savings pursuant to the Code, Section 62(a)(9);
(k) Alimony paid pursuant to the Code, Section 62(a)(10);
(l) The IRA deduction pursuant to the Code, Section 62(a)(7);
(m) The student loan interest deduction pursuant to the Code, Section 62(a)(17);
(n) The tuition and fees deduction pursuant to the Code, Section 62(a)(18); and
(o) The domestic production activities deduction pursuant to the Code, Section 199.
Sec. 4. 36 MRSA §5403, as amended by PL 2013, c. 368, Pt. Q, §11 and affected by §12 and amended by Pt. TT, §19, is repealed and the following enacted in its place:
§ 5403. Annual adjustments for inflation
Beginning in 2015, and each calendar year thereafter, on or about September 15th, the 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-D, 2-D and 3-D and of the benefit base amounts in section 5219-KK, subsection 1, paragraph A. Beginning in 2013, and each calendar year thereafter, on or about September 15th, the assessor shall multiply the cost-of-living adjustment for taxable years beginning in the succeeding calendar year by the dollar amount of the itemized deduction limitation amount in section 5125, subsection 4. If the benefit base amounts, itemized deduction limitation amount or the dollar amounts of each rate bracket, 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 would be less than the cost-of-living adjustment for the preceding calendar year, the cost-of-living adjustment is the same as for the preceding calendar year. The assessor shall incorporate such changes into the income tax forms, instructions and withholding tables for the taxable year.
Sec. 5. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding to implement changes to the property tax fairness credit.
| GENERAL FUND | 2013-14 | 2014-15 |
|
All Other
|
$0 | $124,650 |
 |
|
|
| GENERAL FUND TOTAL | $0 | $124,650 |