‘Sec. 2. 36 MRSA §2513-C is enacted to read:
§ 2513-C. Tax on annuity considerations
1. Phase-out of tax. Notwithstanding the other provisions of this chapter, the rate of tax under this chapter for annuity considerations is 1.8% in calendar year 2020, 1.6% in calendar year 2021, 1.4% in calendar year 2022, 1.2% in calendar year 2023, 1% in calendar year 2024, 0.8% in calendar year 2025, 0.6% in calendar year 2026, 0.4% in calendar year 2027 and 0.2% in calendar year 2028. Beginning in calendar year 2029, annuity considerations are not subject to tax under this chapter, but taxes due for previous years may be collected.
2. Application of reduced rate on annuities. The reduced rates specified in subsection 1 for calendar years 2020 to 2028 apply to premiums on an annuity paid by annuity holders in this State only if the tax savings from the reduced rate are credited to the annuity holders. Upon request of the bureau, an insurer shall submit evidence that establishes that the tax savings derived from the reduced rate under this section have been credited to the annuity holders.
3. Foreign insurance companies. Section 2519 does not apply to annuity considerations subject to tax under this section.’
