LD 11

An Act to Exempt Clothing and Wearing Apparel from the State Sales Tax

ONTP

LD 11 proposed to exempt clothing having a taxable value of less than $75 per item from the sales tax.

LD 12 proposed to allow an income tax credit for expenses incurred on books, educational software and other materials used for approved home schooling. The credit would be limited to $400 per child or $1,000 per family.

LD 13

An Act Relating to Taxation of Agriculture

DIED ON ADJOURNMENT

LD 13 proposed to change the definition of "farmland" under the farm and open space tax law by reducing the number of acres needed to qualify as "farmland" from 5 contiguous acres to 2 contiguous acres.

Committee Amendment "A" (H-571) proposed to permit tracts of land of 2 to 5 contiguous acres to qualify for current use valuation under the farm and open space tax law if the tracts produce at least $2,000 annual commercial gross income from farming or agricultural activity. The amendment proposed to require the State to reimburse municipalities for tax loss under the farm and open space tax law according to the same formula used under the tree growth tax law. The amendment also proposed changes to sales tax provisions relating to agriculture by proposing that the same definition of agricultural activity apply for purposes of eligibility for the sales tax exemption for products used in agriculture and the sales tax refund for depreciable machinery and equipment and electricity and to add certain horticultural activities to the definition. The amendment proposed to add an appropriation section and a fiscal note to the bill. See also LD 36 and LD 1497.

LD 13 died on the Appropriations Table.

LD 17

An Act to Increase the State Earned Income Tax Credit from 5% to 10% of the Federal Earned Income Credit

DIED ON ADJOURNMENT

LD 17 proposed to increase the state earned income credit from 5% to 10% of the federal earned income credit for the same taxable year.

Committee Amendment "A" (H-13) proposed to provide an application date of January 1, 2001.

LD 17 died on the Appropriations Table.

LD 26

An Act to Expand Eligibility for the Veterans' Property Tax Exemption

DIED ON ADJOURNMENT

LD 26 proposed to change eligibility for veterans' property tax exemptions by extending the exemptions to veterans who did not serve during federally recognized war periods but restricting exemptions to those veterans who were honorably discharged. The bill also proposed to require the State to reimburse municipalities for 100% of property tax revenues lost because of the changes proposed in the bill.

Committee Amendment "A" (H-119) proposed to increase property tax exemptions for eligible post-World War I veterans, spouses and dependents to $7,000 to equal the exemption for World War I veterans, spouses and dependents. The State would be required to reimburse municipalities for 100% of the property tax loss attributable to the expanded exemptions

LD 26 died on the Appropriations Table. See also LD 64

LD 32

An Act to Exempt Income Derived from National Guard Service from the State Income Tax

ONTP

LD 32 proposed to exempt from the state income tax all income earned by a Maine resident for active duty in a national guard unit of the Armed Forces of the United States.

LD 36

An Act to Amend the Definition of "Commercial Agricultural Production" in the Laws Governing Taxation

ONTP

LD 36 proposed to adopt the same standard for eligibility for the sales tax exemption for certain agricultural products and for the sales tax refund for depreciable machinery and equipment and electricity used in commercial agricultural production and to expand eligibility to include additional types of qualifying agricultural activity. See also LD 13 and LD 1497.

LD 53

An Act to Exempt Full-time Military Personnel from the State Income Tax

ONTP

LD 53 proposed an income tax exemption for military pay received by full-time military personnel.

LD 64

An Act to Increase the Veterans' Property Tax Exemption

ONTP

LD 64 proposed to increase veterans' property tax exemptions to $10,000 and to eliminate just value as a basis for arriving at the amount of the exemption. See also LD 26.

LD 71

An Act to Exempt Qualifying Snowmobile Trail Grooming Equipment From State Sales Tax

ONTP

LD 71 proposed to exempt from sales and use tax snowmobile equipment purchased by an entity that has a snowmobile trail grooming contract with the Department of Conservation, Bureau of Parks and Lands, Off-road Division.

LD 73

An Act to Exempt from Use Tax Merchandise that is Donated to an Exempt Organization

DIED ON ADJOURNMENT

LD 73 proposed to exempt from the use tax merchandise that a retailer donates from inventory to a nonprofit organization.

Committee Amendment "B" (H-360) proposed a use tax exemption for merchandise donated by a retailer from inventory to an organization that would be exempt from sales tax if purchasing the merchandise.

LD 73 died on the Appropriations Table.

LD 79

An Act to Reinstate Tax Deductibility of Qualified Long-term Care Insurance

CARRIED OVER

LD 79 proposed to repeal, retroactive to January 1, 2000, changes that were made to the income tax deduction and credit for long-term care insurance premiums by restoring a requirement repealed in 1999 that eligible policies be certified by the Superintendent of Insurance.

Committee Amendment "A" (H-432) proposed to extend the income tax deduction and credit for federally qualified long-term care insurance to include policies certified by the Superintendent of Insurance.

When removed from the Appropriations Table, this bill was committed to the Joint Standing Committee on Appropriations and carried over to the Second Regular Session.

LD 82

An Act to Allow Municipalities to Establish a Local Option Sales and Use Tax

ONTP

LD 82 proposed to permit municipalities to adopt a local option sales and use tax. Revenues would be restricted to public improvements, economic development or reducing the property tax commitment. See also LD 883.

LD 86

An Act to Exclude Antique Autos from Excise Tax

ONTP

LD 86 proposed to exempt autos registered as antique autos from the excise tax.

LD 109

An Act to Repeal the Tax on Candy and Confections

ONTP

LD 109 proposed to include candy and confections within the definition of grocery staples that are exempt from the sales tax.

LD 120

An Act to Increase the Homestead Property Tax Exemption from $7,000 to $10,000

DIED ON ADJOURNMENT

LD 120 proposed to increase the amount of the property tax exemption provided under the Maine residents homestead property tax exemption from $7,000 to $10,000.

Committee Amendment "A" (H-600) proposed to increase the homestead property tax exemption by increasing the exemption by $500 every 2 years until the total exemption reaches $10,000 in 2012.

LD 120 died on the Appropriations Table.

LD 124

An Act to Allow for a Prorated Application of Property Tax Exemptions for Charitable and Benevolent Institutions

ONTP

LD 124 proposed to allow a prorated property tax exemption for those portions of property used for the purposes of a charitable or benevolent institution or a literary or scientific institution.

LD 129

An Act to Provide an Income Tax Deduction for Compensation Paid to Victims of the Holocaust and Their Survivors

DIED ON ADJOURNMENT

LD 129 proposed to provide an income tax deduction to individuals and their heirs for compensation received from a government or private company for damages or injustice experienced by the individual as a victim of the Holocaust.

Committee Amendment "A" (S-42) proposed to provide more specific definitions for the individuals and types of payments made to holocaust survivors that are made exempt from income tax.

The provisions of Committee Amendment "A" were included in of the Part 2 budget bill, Public Law 2001, chapter 439, Part KK. See LD 855 summarized under the Joint Standing on Appropriations and Financial Affairs.

LD 134

An Act to Amend the Laws Governing the Reporting Provisions Regarding Gasoline Consumption by Recreational Vehicles

ONTP

LD 134 proposed to require the Commissioner of Inland Fisheries and Wildlife, the Commissioner of Conservation and the Commissioner of Marine Resources to report every 3 years beginning February 1, 2002 to the joint standing committees of the Legislature having jurisdiction over taxation, inland fisheries and wildlife and marine resources matters on the amount of gasoline consumed by motorboats, snowmobiles and all-terrain vehicles.

LD 138

An Act to Exempt Sales of Clothing from Tax for 2 Weeks in August

ONTP

LD 138 proposed a sales tax exemption for sales of clothing with a taxable value of $100 or less per item during the 2nd and 3rd weeks of August.

LD 144

An Act to Reduce the Tax on Gasoline

ONTP

LD 144 proposed to reduce the excise tax on gasoline from 22¢ to 17¢ per gallon.

LD 145

An Act to Protect Senior Homeowners

ONTP

LD 145 proposed to prohibit property tax lien foreclosure on property that is the permanent residence of a person who is at least 70 years old unless the delinquent taxes exceed 50% of the assessed value of the property.

LD 171

An Act to Require the State to Reimburse Communities and Unorganized Territories for Loss of Tax Revenue when the State Purchases 100 Acres or More of Land

ONTP

LD 171 proposed to require the State to reimburse municipalities and the unorganized territory for property tax revenue lost as a result of the State acquiring 100 acres or more of land after October 1, 2001.

LD 174

An Act to Amend the Determination of Penalty for the Tree Growth Tax Law

ONTP

LD 174 proposed to reduce the penalty for withdrawal from tree growth tax classification from 30% to 20% for land classified for less than 10 years. The penalty would then decline 1% per year to 10% for land classified for 20 or more years.

LD 180

An Act to Increase the Homestead Property Tax Exemption

ONTP

LD 180 proposed to increase the homestead property tax exemption from $7,000 to $15,000 in 2002 and further increase it annually in increments of $1,000 until a maximum exemption of $25,000 would be achieved. See also LD 120, LD 261 and LD 693.

LD 203

An Act to Establish Medical Savings Account

ONTP

LD 203 proposed procedures for establishment of individual medical savings accounts. The bill also proposed income tax deductions for contributions to medical savings accounts by individuals, interest earned on those accounts and qualified withdrawals from the accounts. The bill was rereferred to the Joint Standing Committee on Banking and Insurance which unanimously voted "Ought Not To Pass".

See also LD 1554.

LD 209

An Act to Increase the Amount Transferred through State-municipal Revenue Sharing

DIED ON ADJOURNMENT

LD 209 proposed to raise the percentage of sales and income tax revenues dedicated to the Local Government Fund for state-municipal revenue sharing from 5.1% to 5.5%.

Committee Amendment "A" (S-13) proposed to clarify the date on which transfers to the Local Government Fund increase to 5.5%.

LD 209 died on the Appropriations Table. An increase in state-municipal revenue sharing to 5.2% beginning January 1, 2003 was included in the Part 2 Budget Bill as Part OO. See LD 855, Public Law, chapter 439, summarized under the Joint Standing Committee on Appropriations and Financial Affairs.

LD 261

An Act to Establish the Maine Resident Homestead Property Tax Rebate Program

ONTP

LD 261 proposed to repeal the $7,000 Maine resident homestead property tax exemption and replace it with a state rebate of property taxes paid on residential property up to $10,000 of the just value of that property. The rebate program would require the homeowner to apply directly to the State for the rebate and would allow the homeowner to apply for the rebate either as part of the homeowner's income tax return or on a separate form. See also LD 120, LD 180 and LD 693.

LD 263

An Act to Authorize the Maine Land Use Regulation Commission to Receive Real Estate Transfer Tax Forms for Municipalities in its Jurisdiction

PUBLIC 23

LD 263 proposed to permit the State Tax Assessor to provide copies of real estate transfer tax forms to the Maine Land Use Regulation Commission in order to allow the commission to easily and simply maintain accurate records and relieve towns and plantations from providing the information.

Committee Amendment "A" (S-14) proposed to permit the State Tax Assessor to require entities other than municipal assessors requesting real estate transfer tax declaration of value forms to provide resources sufficient to cover the cost of providing the forms.

Enacted Law Summary:

Public Law 2001, chapter 23 permits the Bureau of Revenue Services to provide copies of real estate transfer tax forms to the Maine Land Use Regulation Commission and requires entities, other than municipalities, requesting real estate transfer tax forms to provide resources to cover the cost of providing the forms.

LD 311

An Act to Provide Tax Credits against the Maine State Income Tax for Qualifying Education Expenses of Dependent Children in Grades Kindergarten to 12

ONTP

LD 311 proposed an income tax credit for qualified educational expenses for kindergarten to grade 12 education of a dependent child at a public or private school or equivalent instruction. The credit would be equal to 33% of qualified educational expenses, including tutoring, tuition, student fees, school supplies, books and computer-based learning technology up to $750 per dependent child.

LD 320

An Act to Provide a Tax Credit to Certain Small Businesses

ONTP

LD 320 proposed an income tax credit of up to $100 for a taxpayer with gross business receipts of less than $1,000,000.

LD 321

An Act to Strengthen Maine's Economic Development Incentive Laws

DIED BETWEEN HOUSES

LD 321 proposed to repeal the August 1, 2002 sunset on the Economic Development Incentive Commission and associated laws.

Committee Amendment "B" (S-216) which was the majority report of the committee, proposed to change the membership of the Economic Development Incentive Commission from 11 members, including representatives of state agencies and interest groups, to 7 members of the Legislature and extend the sunset of the Commission to August 1, 2004 while maintaining business and agency reporting requirements.

Senate Amendment "A" (S-378) proposed to retain the current schedule for repeal of the Economic Development Incentive Commission on August 1, 2002 while making the business and agency reporting requirements ongoing.

LD 325

An Act to Enhance Collectibility of the Penalty for Failure to File the Municipal Valuation Tax Return

PUBLIC 32

LD 325 proposed to require that the penalty for filing a municipal valuation return late be deducted from any state reimbursement due the municipality or primary assessing area.

Committee Amendment "A" (S-6) proposed that the penalty for failing to file a municipal valuation return on time may be deducted from state reimbursement for veterans' exemptions and for the homestead exemption in addition to reimbursement for tax loss under the Maine Tree Growth Tax Law.

Enacted Law Summary:

Public Law 2001, chapter 32 provides that the penalty for failing to file a municipal valuation return on time may be deducted from state reimbursement for veterans' exemptions and for the homestead exemption in addition to reimbursement for tax loss under the Maine Tree Growth Tax Law.

LD 334

An Act to Provide Incentives to Families Who Save for College

ONTP

LD 334 proposed an income tax deduction of 10%, up to $2,000, of the amount contributed to a college savings account under the Maine College Savings Program.

This bill was rereferred to the joint Standing Committee on Education.

LD 338

An Act to Increase Funding for Animal Welfare Programs

ONTP

LD 338 proposed a voluntary income tax checkoff to earmark funds to the Animal Welfare Fund, administered by the Department of Agriculture, Food and Rural Resources, to support animal welfare programs and efforts of the department.

LD 350

An Act to Exempt Recipients of the Silver Star from the State Income Tax

ONTP

LD 350 proposed a state income tax exemption for recipients of the Silver Star awarded for service in the Armed Forces of the United States.

LD 358

RESOLUTION, Proposing an Amendment to the Constitution of Maine to Require a Vote of 2/3 of Each House of the Legislature to Enact or Include a Tax or License Fee

ONTP

LD 358 proposed to amend the Constitution of Maine to require approval of 2/3 of each House of the Legislature to enact or increase taxes or license fees except when inadequate funds have been appropriated for debt payment.

LD 359

An Act to Eliminate the Sales Tax on Shipping Charges on Home Party Sales

ONTP

LD 359 proposed to exclude from sales tax the cost of transportation of purchased items that are not delivered directly to the purchaser.

LD 384

An Act to Increase the Forest Management Planning Income Tax Credit

DIED ON ADJOURNMENT

LD 384 proposed to increase the forest management and harvest plan income tax credit from $200 to $300.

Committee Amendment "A" (H-359) proposed to restrict the increase in the forest management plan credit to landowners whose land was classified under the Maine Tree Growth Tax Law before September 30, 1989, when the management plan was first required as a condition of participation in the current use valuation program

House Amendment "A "To Committee Amendment "A" (H-427) proposed to add an application section that was inadvertently omitted from the committee amendment.

House Amendment "B" To Committee Amendment "A" (H-473) proposed to clarify the intent of the committee amendment that the credit applies to forest management and harvest plans for parcels of land greater than 10 acres.

LD 384 died on the Appropriations Table.

LD 398

An Act to Allow Municipalities to Determine the Level of Auto Excise Tax

ONTP

LD 398 proposed to permit municipal legislative bodies to adopt alternative excise tax rates for automobiles if those rates are not higher than the rates established by state law.

LD 402

An Act to Remove the Time Limit on Applying for Refunds of Tax Stamps on Unsalable Cigarettes

ONTP

LD 402 proposed to remove the time limit on applying for refunds of tax stamps on unsalable cigarettes.

LD 404

An Act to Promote Equity Among Health Care Clinics

CARRIED OVER

LD 404 proposed to extend the sales and use tax exemption for rural community health clinics to all nonprofit health clinics.

Committee Amendment "A " (S-15) proposed to add a fiscal note to the bill.

Upon removal from the Appropriations Table this bill was rereferred to the Taxation Committee and carried over to the Second Regular Session.

LD 406

An Act to Reduce Tree Growth Tax Benefits to Landowners Who Ship Raw Timber Outside the Country

ONTP

LD 406 proposed to require the assessment of a penalty under the Maine Tree Growth Tax Law if raw timber harvested from land subject to assessment under that law is shipped outside the United States. The penalty would be equal to 25% of the property taxes otherwise assessed on the land.

LD 417

An Act to Tax Farm Implements Equally

ONTP

LD 417 proposed to exempt from sales tax all-terrain vehicles used as cargo-carrying vehicles exclusively in the performance of farming activities. The bill was unnecessary because the specified vehicles are currently eligible for exemption or rebate.

LD 430

An Act to Encourage Equity Equivalent Loans or Investments in Nonprofit Community Economic Development and Affordable Housing Organizations

DIED ON ADJOURNMENT

LD 430 proposed to establish a credit against the income tax, the insurance premium tax and the bank franchise tax for equity equivalent loan investments in eligible nonprofit economic development organizations. The credit would be equal to 6% of the face value of the investment annually for 10 years.

The total of the aggregate additional new credits that may be authorized each year would be limited to $100,000. No new credits could be authorized after fiscal year 2005-06. Investors and borrowers would be required to report annually regarding activities. Authorization for a tax credit could be revoked and previous credits recaptured if the investor fails to meet eligibility requirements.

Committee Amendment "A" (H-156) proposed to add affordable housing as a permissible purpose for equity equivalent loans or investments eligible for a tax credit

LD 430 died on the Appropriations Table.

LD 438

An Act to Exempt Nonprofit Religious Ministries From Sales Tax for Items Used in Missionary Work

ONTP

LD 438 proposed a sales tax exemption for sales to incorporated nonprofit religious ministries of items used in missionary work.

LD 445

An Act to Establish a Sales Tax Exemption for Purchases Made by Private, Nonprofit Senior Citizens' Centers

ONTP

LD 445 proposed a sales tax exemption for sales to private, nonprofit senior citizens' centers.

LD 457

An Act to Clarify that the Sales Tax Exemption for Purchase of Manufacturing Equipment Applies Equitably

CARRIED OVER

LD 457 proposed to include television and radio broadcast signals within the definition of "tangible personal property" under the sales tax law for the purpose of including machinery used to produce the radio and television broadcasts within the existing manufacturers' sales tax exemption that is currently utilized by the print media.

Committee Amendment "A" (S-100) proposed to move the changes provided by the bill from a definition section in the law to a sales tax exemption section in the law to accomplish the intent of the bill more appropriately.

When removed from the Appropriations Table LD 457 was referred to the Joint Standing Committee on Appropriations and Financial Affairs and carried over to the Second Regular Session.

LD 496

An Act to Amend the Maine Revenue-sharing Formula

ONTP

LD 496 proposed to change the formulas for distribution of state municipal revenue sharing. The bill proposed to dedicate 0.5% of sales and income tax collections to the Disproportionate Tax Burden Fund to be distributed to municipalities with disproportionately high property tax mill rates. The bill also proposed to remove the annual growth ceiling on the Local Government Fund which would be distributed under the original revenue sharing formula and return the amount dedicated to that fund to 5.1% of sales and income tax collections. The bill also proposed to increase the tax burden level that is considered disproportionate from the current threshold of 10 mills to 12.5 mills.

LD 531

An Act to Reimburse Collectors of Sales and Use Taxes

ONTP

LD 531 proposed to permit retailers that collect sales and use tax to retain up to 2.5% of the sales and use taxes they collect, up to $50 per month per affiliated business, as reimbursement for the costs of collection.

LD 533

An Act to Improve the Business Equipment Tax Reimbursement Program

ONTP

LD 533 proposed to prohibit reimbursement of property taxes under the business equipment tax reimbursement program if the taxes also are reimbursed under a tax increment financing district agreement.

LD 546

An Act to Provide a Sales Tax Exemption for Boats Used for Business

ONTP

LD 546 proposed a sales tax exemption for watercraft that are purchased for use directly and primarily for business purposes.

LD 571

An Act to Eliminate the Sales Tax on Textbooks

ONTP

LD 571 proposed a sales tax exemption for textbooks or book substitutes purchased for use by a student pursuing a full-time course of study or training at any recognized school, college or university.

LD 572

An Act to Create a Computer Technology Taxable Income Deduction for Maine Families

ONTP

LD 572 proposed an individual income tax deduction of up to $1,000 in any 5-year period for purchases of computer hardware, software or Internet access.

LD 576

RESOLUTION, to Amend the Constitution of Maine to Dedicate Funds for the Protection of Maine's Fish and Wildlife Resources

ONTP

LD 576 proposed a constitutional amendment to dedicate 0.125% of sales and use tax revenues to the Department of Inland Fisheries and Wildlife for protection of the State's fish and wildlife resources. The constitutional resolution was the recommendation of the Citizens' Advisory Committee to Secure the Future of Maine's Wildlife and Fish and was intended to dedicate 2.5% of sales and use tax revenues for the purposes proposed by the constitutional resolution.

LD 577

An Act to Create Equitable Taxation of Leased Property

ONTP

LD 577 proposed a use tax on lessees of tangible personal property from a tax-exempt governmental entity calculated in the same manner as if the purchase by the lessor was subject to sales tax. The bill was intended to impose a sales tax on transactions involving certain federally authorized farm credit organizations that are exempt from sales tax.

LD 581

An Act to Exempt Certain Organizations from the Meals and Lodging Tax

DIED ON ADJOURNMENT

LD 581 proposed a sales tax exemption for sales of meals and related items and services by an American Legion auxiliary organization in connection with a fund-raising event if the sales are made in a room that is separate from a lounge and patrons are prohibited from taking alcoholic beverages from the lounge to the separate room.

Committee Amendment "A" (H-100) proposed to clarify that the sales tax exemption would apply only to nonprofit auxiliary organizations of the American Legion and to fund-raising events that are sponsored by the auxiliary organization

LD 581 died on the Appropriations Table.

LD 607

Resolve, Requiring an Evaluation and Reform of the Tax Expenditure Review Process

RESOLVE 17

LD 607 was a concept draft that proposed amending the tax expenditure review process under which the joint standing committee of the Legislature having jurisdiction over taxation matters is required to review tax expenditures according to the schedule set forth in the Maine Revised Statutes, Title 36, section 198.

Committee Amendment "A" (S-72) replaces the concept draft and proposed to require the Bureau of Revenue Services and the Office of Fiscal and Program Review to gather information relating to the State's tax expenditure review process and other reporting requirements and identify options for updating and improving the process of legislative review of tax expenditures and other required reports. The information gathered must be presented to the Joint Standing Committee on Taxation, which is authorized to report out legislation to the Second Regular Session of the 120th Legislature.

Enacted Summary:

Resolve 2001, chapter 17 requires the Bureau of Revenue Services and the Office of Fiscal and Program Review to gather information relating to the State's tax expenditure review process and other reporting requirements and identify options for updating and improving the process of legislative review of tax expenditures and other required reports. The information gathered must be presented to the Joint Standing Committee on Taxation, which is authorized to report out legislation to the Second Regular Session of the 120th Legislature.

LD 613

An Act to Create a Sales Tax Holiday for the Purchase of School Supplies

ONTP

LD 613 proposed an exemption from the sales tax for purchases of school supplies with a value of $50 or less per item during the 3rd week of August.

LD 615

An Act to Eliminate the Marriage Penalty under the Income Tax Laws

DIED ON ADJOURNMENT

LD 615 proposed to increase the standard deduction for married persons filing joint returns and surviving spouses permitted to file joint returns to twice the amount for persons filing as single individuals or married persons filing separately. The standard deduction for heads of households would be 150% of the amount for single individuals.

Committee Amendment "A" (H-657) proposed to clarify that the doubling of the standard deduction would not apply to individuals who file joint returns and are also included as dependents on the return of another taxpayer.

LD 615 died on the Appropriations Table.

LD 616

An Act to Exempt Over-the-counter Medications From the Sales Tax

ONTP

LD 616 proposed a sales tax exemption for over-the counter-medicines.

LD 617

An Act to Require Property Tax Payments on Conservation Easements and Development Rights Purchased After October 1, 2001

ONTP

LD 617 proposed to subject all conservation easements and development rights acquired by any entity after October 1, 2001 to property tax.

LD 631

An Act to Require that All Owners Sign a Notice of Intent to Harvest for Land Subject to the Maine Tree Growth Tax Law

ONTP

LD 631 proposed to require that proof of ownership, names, addresses and signatures of all owners of an interest in a parcel of land be included in the schedule that is required to be filed with the State Tax Assessor when a parcel of land first becomes subject to the Maine Tree Growth Tax Law. The bill also proposed to require all owners of a parcel of land that is subject to the Maine Tree Growth Tax Law to sign the notice of intent to harvest that is required to be filed with the Department of Conservation, Bureau of Forestry before harvesting operations on that parcel begin.

LD 632

RESOLUTION, Proposing an Amendment to the Constitution of Maine to Allow Municipalities the Option of Exempting Personal Property from Taxation if No Property Owner in the Municipality Owns More than 2% of the Taxable Property in the Municipality

ONTP

LD 632 proposed to amend the Constitution of Maine to allow municipalities to exempt all personal property in the municipality from property tax if no taxpayer owns property with a just value of more than 2% of the just value of all taxable property in the municipality.

LD 635

RESOLUTION, Proposing an Amendment to the Constitution of Maine to Value All Land Based on Its Current Use

ONTP

LD 635 proposed to amend the Constitution of Maine to require that property tax assessment be based on current use value rather than just value.

LD 654

An Act to Amend the Tax Assessed Against Certain Casual Sales

ONTP

LD 654 proposed to exclude from the sales tax on casual sales a sale by a corporation, partnership, limited liability company or limited liability partnership to an owner of a majority of the common stock of the corporation or the ownership interests in the partnership, limited liability company or limited liability partnership.

LD 657

An Act to Exempt Individuals Who are 65 Years of Age or Older and Meet Income Requirements from Increases in Property Taxes

ONTP

LD 657 proposed to freeze the property tax rate for a property owner who reaches 65 years of age and whose income is not more that 200% of the federal poverty level. This bill also proposed to require the Treasurer of State to reimburse a municipality for 100% of any property tax revenues lost due to the freeze on property tax rates.

See also LD 980.

LD 664

An Act to Amend the Employment Tax Increment Financing Program

PUBLIC 157

LD 664 proposed to expand the employment tax increment financing program by permitting businesses in high unemployment labor markets to qualify for the Maine Employment Tax Increment Financing Program with lower numbers of additional new qualified employees. Under current law, at least 15 new qualified employees are required. Under this bill, businesses in labor market areas with above average unemployment could qualify for the program with 10 additional qualified employees. Businesses in labor market areas with unemployment greater than 150% of the state average could qualify with 5 additional qualified employees.

Committee Amendment "A" (S-102) proposed to replace the bill and to expand the employment tax increment financing program by permitting businesses to qualify for the program if they add 5 or more qualified employees.

Enacted Law Summary:

Public Law 2001, chapter 157 expands the employment tax increment financing program by permitting businesses to qualify for the program if they add 5 or more qualified employees.

LD 667

An Act to Exempt Retirement Income from the Maine Income Tax

ONTP

LD 667 proposed to remove the $6,000 cap on the amount of the income tax deduction for pension benefits and make the deduction applicable to all pension plans recognized by the United States Internal Revenue Code. See also LD 717, LD 719, LD 810, LD 880, LD 914, LD 939, LD 1029, LD 1115 and LD 1370.

LD 674

An Act to Change the Ad Valorem Tax on Certain Smokeless Tobacco Products to a Weight-based Tax

ONTP

LD 674 proposed to change the tax on moist snuff from 62% of the wholesale sales price to $1.50 per ounce.

LD 693

An Act to Reduce Property Taxes

ONTP

LD 693 proposed to increase the homestead property tax exemption from $7,000 to $40,000 and to permit an entire owner-occupied apartment building to qualify.

LD 697

Resolve, Decreasing the Gasoline Tax by 10 Cents Per Gallon

ONTP

LD 697 proposed to require the Department of Administrative and Financial Services, Bureau of Revenue Services to decrease the excise tax on all grades of gasoline and diesel fuel by 10¢ beginning on the first day of the month after the effective date of this resolve and ending on May 25, 2001.

LD 710

An Act to Authorize Towns to Give Tax Breaks to Volunteer Firefighters

ONTP

LD 710 proposed to permit municipalities to adopt a plan to reimburse volunteer firefighters and emergency medical services personnel for a portion of property taxes paid to the municipality.

LD 711

An Act to Permit a Sales Tax Trade-in Credit for Leased or Rented Vehicles

ONTP

LD 711 proposed to allow a sales tax trade-in credit for leased or rented automobiles.

LD 713

An Act to Preserve Maine's Income Tax Revenues

ONTP

LD 713 was a concept draft that proposed to revise the Maine income tax laws to ensure that any changes at the federal level to the rate of income tax and the deductions and credits allowed under the federal tax code do not decrease the amount of income tax revenue received by the State.

LD 717

An Act to Index the Income Tax Deduction for Pensions to the Rate of Inflation

ONTP

LD 717 proposed to index for inflation the $6,000 state income tax exemption for pension income. The bill also proposed to make the deduction applicable to all pension plans recognized by the United States Internal Revenue Code. See also LD 667, LD 719, LD 810, LD 880, LD 914, LD 939, LD 1029, LD 1115 and LD 1370.

LD 719

An Act to Increase the Income Tax Deduction on Private, Public and Military Pensions from $6,000 to $10,000

ONTP

LD 719 proposed to increase the state income tax exemption for pension income from $6,000 to $10,000. See also LD 667, LD 717, LD 810, LD 880, LD 914, LD 939, LD 1029, LD 1115 and LD 1370.

LD 722

An Act to Strengthen the Maine Taxpayer Bill of Rights

ONTP

LD 722 proposed to require the Bureau of Revenue Services to enforce the Taxpayer Bill of Rights more carefully and to provide a procedure for taxpayers to complain about treatment to the director of the appellate division of the Bureau of Revenue Services and, subsequently, to the Superior Court. Among the remedies provided for failure to follow the required safeguards in dealing with a taxpayer would be reimbursement to the taxpayer of costs, including attorney's fees.

LD 723

An Act to Establish a Flat Tax Rate for the Maine Income Tax

ONTP

LD 723 proposed to change the existing graduated income tax rate structure into a 5% flat rate income tax and to increase the standard deduction to $10,000 for individuals, $20,000 for heads of households and $30,000 for married persons filing jointly.

LD 738

Resolve, Directing the Bureau of Revenue Services to Relocate the Chickadee Checkoff on the Maine Income Tax Form

ONTP

LD 738 proposed to require the Department of Administrative and Financial Services, Bureau of Revenue Services to place the so-called "chickadee checkoff," which allows a taxpayer filing an income tax form to donate to the Maine Endangered and Nongame Wildlife Fund, on page 1 of the income tax form.

LD 746

An Act to Exempt Certain Temporary Placement and Adoption Services Organizations from the Sales Tax

DIED ON ADJOURNMENT

LD 746 proposed a sales tax exemption for sales to incorporated nonprofit organizations that provide temporary child placement and adoption services and are licensed by the Department of Human Services.

Committee Amendment "A" (H-137) proposed to clarify which licensed organizations qualify for the exemption.

LD 746 died on the Appropriations Table.

LD 762

An Act to Exempt Purple Heart Recipients from State Income Tax

ONTP

LD 762 proposed to exempt from Maine income tax income earned by a person awarded the Purple Heart medal, which is awarded to a member of the United States armed forces who was killed or wounded in action.

LD 765

An Act to Establish a Municipal Reimbursement Formula for Current Use Taxation Programs

ONTP

LD 765 proposed to change the formula for calculation of reimbursement to municipalities for property tax loss resulting from classification of land under the tree growth tax law by requiring reimbursement for 90% of the actual tax loss based on the value that the land would have been assessed at if not classified for current use valuation. The bill also proposed to adopt the same formula for tax loss resulting from land classified under the farm and open space tax law.

LD 785

An Act to Promote Capital Formation and Investment

ONTP

LD 785 proposed to exclude from state income tax 1/2 of net long-term capital gains.

LD 786

An Act to Create a State Tax Deduction for Donations to Maine Nonprofit Corporations

ONTP

LD 786 proposed an income tax deduction of up to $2,000 for donations to state-based charitable organizations. The deduction could be claimed by persons claiming the standard deduction or itemized deductions.

See also LD 1539.

LD 788

An Act to Exempt Food, Lodging, Service and Retail Property from the Business Equipment Tax Reimbursement Program

ONTP

LD 788 proposed to exclude from the business equipment tax reimbursement program, referred to as BETR, property placed in service in this State after April 1, 2001 that is used primarily for the provision of meals and lodging, retail sales or professional, personal or business services.

LD 795

An Act to Rebalance Maine's Tax Code and Reduce the Structural Gap

ONTP

LD 795 was a concept draft that proposed to restructure the State's tax system to provide a balanced system that would produce a more reliable revenue stream that was intended to be fairer to taxpayers, less volatile to changes in the economy and more attractive to economic development. The bill would contain the following provisions.

Effective for tax years beginning on or after January 1, 2002, the bill proposed to revise the personal income tax by reducing the 4 current brackets to 2 brackets of 4% and 7% and establish a flat 7% rate for the corporate income tax. The bill proposed to make the earned income tax credit refundable.

The bill proposed to reduce the general sales tax rate from 5% to 4.5% effective July 1, 2002.

The bill proposed to exempt from sales tax the first $5,000 paid for an automobile and to repeal the trade-in credit for automobiles effective July 1, 2002.

The bill proposed to apply a 3% sales tax to motor fuels effective July 1, 2002 and to allocate an additional .05% of total gas tax revenues for marine uses and an additional .13% of gas tax revenues for the Snowmobile Trail Fund.

The bill proposed to amend the business equipment tax reimbursement, BETR, program for property placed in service after April 1, 2002 by prohibiting receipt of benefits under both the BETR program and municipal tax increment financing, restricting reimbursement to manufacturing and research equipment, eliminating eligibility for retail and services industries, reducing reimbursement to 60% of taxes paid, and imposing a wage standard that must be met for

95% of the BETR participants' employees in Maine. The proposed wage standard would require that the hourly wage plus hourly apportioned benefits for each employee exceed the average weekly wage for that employee's county of residence divided by 40.

The bill proposed to repeal the property tax exemption for pollution control facilities effective March 31, 2002. The exemption would be replaced by reimbursement under the BETR program.

Effective July 1, 2002, the bill proposed to apply a tax on electricity at the following rates per kilowatt hour based on the source from which the electricity is generated: .9 cents for coal, .6 cents for oil and .3 cents for gas.

Beginning July 1, 2002, the bill proposed to permit retailers to retain 1% of sales tax collections up to $100 per quarter. This right would be forfeited if the retailer did not file a timely return or remit the proper amounts due.

The bill proposed that these changes in the tax system would take effect if alternative revenue sources were identified by a proposed commission and enacted by June 1, 2002.

LD 798

An Act to Redefine Property Subject to the Business Equipment Tax Reimbursement Program to Include Only Property Used for Manufacturing and Research

ONTP

LD 798 proposed to amend the law relating to reimbursement for taxes paid on certain business property (BETR) to restrict reimbursement for tangible personal property to property that is part of a manufacturing facility or is machinery and equipment for research, beginning with property placed in service on or after April 1, 2002.

LD 803

An Act to Implement the Recommendations of the Joint Standing Committee on Taxation Resulting from Its Review of Income Tax Expenditures Pursuant to the Maine Revised Statutes, Title 36, chapter 9

PUBLIC 177

LD 803 contained the recommendations of the Joint Standing Committee on Taxation as a result of its review of income tax expenditures pursuant to the Maine Revised Statutes, Title 36, chapter 9.

The bill proposed to:

1. Delete the income tax deduction for "seller-sponsored loans" because the provision does not appear to have been used since its enactment in 1983;

2. Repeal the deduction for 1985-87 tax conformity adjustments because they are obsolete;

3. Amend the deduction for the new jobs credit to indicate the change of name of the credit on the federal level;

4. Amend terms used in the credit for employer-assisted day care to resolve a conflict resulting from changes made in 1999 and to reflect changes in terminology enacted in Public Law 1999, chapter 708; and

5. Repeal the 1987 tax conformity credit because it is obsolete.

Committee Amendment "A" (S-101 ) proposed to strike from the bill sections amending the quality child care credit in order to avoid conflict with other legislation. These provisions were included in the Committee amendment to LD 1613.

Enacted Law Summary:

Public Law 2001, chapter 177 contains the recommendations of the Joint Standing Committee on Taxation as a result of its review of income tax expenditures pursuant to the Maine Revised Statutes, Title 36, chapter 9.

The bill accomplishes the following.

1. It deletes the income tax deduction for "seller-sponsored loans" because the provision does not appear to have been used since its enactment in 1983.

2. It repeals the deduction for 1985-87 tax conformity adjustments because they are obsolete.

3. It amends the deduction for the new jobs credit to indicate the change of name of the credit on the federal level.

4. It repeals the 1987 tax conformity credit because it is obsolete.

LD 805

An Act to Allow a $5,000 State Income Tax Exemption for Any Full-time, Postsecondary Student With a Taxable Income of $20,000 or Less

ONTP

LD 805 proposed to create an income tax exemption of $5,000 for a full-time postsecondary student with a taxable income of $20,000 or less.

LD 810

An Act to Amend the Laws Governing the Deduction of Pension and Retirement Benefits from State Income Tax

CARRIED OVER

LD 810 proposed to increase the $6,000 deduction from the state income tax for certain public, private and military pensions to $8,000 beginning January 1, 2002 with an additional increase of $1,000 in each subsequent year until the amount of the deduction is $17,000; thereafter, the amount of the deduction would be equal to the amount of the federal tax exemption for social security benefits.

This bill was carried over to the Second Regular Session.

LD 818

An Act to Exempt from the Sales Tax the Deposit on Automotive Cores

ONTP

LD 818 proposed to exempt from the sales tax the amount held by the retailer for the return of an automotive core and require that amount to be treated as a deposit, thus exempt from the sales tax.

LD 831

An Act to Establish a Circuit Breaker Program for Fuel Assistance

DIED BETWEEN BODIES

LD 831 proposed to create the Maine Heating Fuel Assistance Program to provide reimbursement for heating fuel costs to taxpayers. The Maine Heating Fuel Assistance Program would be modeled after and administered under the Maine Residents Property Tax Program within the Department of Administrative and Financial Services, Bureau of Revenue Services for eligibility requirements and benefits to claimants. This bill died between Houses pending reference.

LD 838

An Act to Increase the Personal Income Tax Exemption to $5,500 Per Eligible Dependent

ONTP

LD 838 proposed to increase the amount of each personal exemption under the state income tax from $2,850 to $5,500.

LD 839

An Act to Allow a Property Tax Exemption to Landowners Whose Property Abuts a Solid Waste Facility

ONTP

LD 839 was a concept draft that proposed a property tax exemption for property that abuts or is directly connected to a solid waste facility. In order to qualify for the exemption, the property must abut or be directly connected, such as through an aquifer or well, to the solid waste facility; the applicant must have owned the property that abuts the solid waste facility prior to the development of the facility; and the solid waste facility must provide a substantial public benefit to the people of the State. A landowner who sold abutting or connected land to a facility or who purchased such land after the development of the facility would not be eligible for the tax exemption.

LD 845

An Act to Establish a Sales Tax Exemption for Certain Incorporated, Nonprofit Memorial Foundations

DIED ON ADJOURNMENT

LD 845 proposed a sales tax exemption for incorporated, nonprofit memorial foundations, such as the Araxine Wilkins Sawyer Foundation, that are established for educational and social purposes and that present free public educational programs.

Committee Amendment "A" (H-138) proposed to revise the language of the proposed exemption to include incorporated, nonprofit memorial foundations that provide cultural programs free to the public.

LD 845 died on the Appropriations Table.

LD 846

An Act to Provide Equity in Taxation of Certain Mobile Homes

ONTP

LD 846 proposed to provide a sales and use tax exemption for mobile homes and camper trailers purchased outside the State by a nonresident and located in the State less than 6 months annually.

LD 865

An Act to Reduce the Personal Income Tax

ONTP

LD 865 proposed to reduce income tax rates if General Fund revenues for the previous fiscal year exceeded the December 1st projections for that fiscal year by more than 5%. Income tax rates would be reduced by the proportion by which General Fund revenues exceeded 105% of revenue projections.

LD 877

An Act to Exempt Medical Devices and Assistive Devices Used by Individuals with Disabilities from the Sales Tax

DIED ON ADJOURNMENT

LD 877 proposed to update the sales tax exemption for prosthetic devices to include modern terminology and technology and to expand the exemption to include labor and materials necessary to adapt a vehicle or home to accommodate a person's functional limitations.

Committee Amendment "A" (H-141) proposed to expand the sales tax exemption for prosthetic devices to include durable medical equipment and related supplies that are eligible for coverage under the Medicaid and Medicare programs and that are sold pursuant to a written prescription or certificate of medical necessity.

LD 877 died on the Appropriations Table.

LD 879

An Act to Decrease Individual Income Tax by 20%

ONTP

LD 879 proposed to recreate a revenue targeting procedure based on legislation enacted by the 117th Legislature, repealed by the 118th Legislature and never implemented. The bill proposed a procedure by which individual income tax rates would be reduced if income tax revenue exceeded statutory targets until rates were 20% less than the 1998 rates. Revenue exceeding revenue targets would be paid to a fund to be used to pay individual income tax refunds.

LD 880

An Act to Increase to $17,500 and $35,000 the Tax Deduction for Public and Private Pensions

ONTP

LD 880 proposed to increase the income tax deduction for pension income from $6,000 to $17,500 for persons filing single returns and $35,000 for married persons filing jointly and to expand the deduction to include all pension and annuity income and, for taxpayers at least 65 years of age, income from interest, dividends and capital gains. See also LD 667, LD 717, LD 719, LD 810, LD 914, LD 939, LD 1029, LD 1115 and LD 1370.

LD 883

An Act to Return a Percentage of Sales and Use Tax to Municipalities

CARRIED OVER

LD 883 proposed to require the State beginning September 2002 to distribute to municipalities 10% of the amount by which sales and use tax revenues for the preceding fiscal year exceeds sales and use tax revenues in fiscal year 2000-01. The local revenues would be distributed to municipalities based upon the proportion of sales and use tax revenue attributable to the municipality.

This bill was carried over to the Second Regular Session.

LD 897

An Act to Create an Income Tax Exemption for the Dental and Medical State Loans Repayment Program

ONTP

LD 897 proposed to create an income tax exemption for loan repayments made to state-sponsored loan programs for medical and dental education.

LD 909

An Act to Improve the Circuit Breaker Program Application Process

CARRIED OVER

LD 909 was a concept draft that proposed to simplify the application process for the Maine Residents Property Tax Program, commonly referred to as the "Circuit Breaker Program."

This bill was carried over to the Second Regular Session.

LD 914

An Act to Provide Fair Treatment in Taxation of Social Security Retirement Benefits

ONTP

LD 914 proposed to remove the provision that reduces the $6,000 income tax exemption for pension income by the amount of social security and railroad retirement benefits received. See also LD 667, LD 717, LD 719, LD 810, LD 880, LD 939, LD 1029, LD 1115 and LD 1370.

LD 939

An Act to Provide Tax Relief to Maine's Military Retirees

ONTP

LD 939 proposed to remove the $6,000 cap on the income tax exemption for military pension benefits. The bill also proposed that military retirement benefits and benefits paid under the Maine State Retirement System would not be subject to the reduction for social security and railroad retirement benefits. See also LD 667, LD 717, LD 719, LD 810, LD 880, LD 914, LD 1029, LD 1115 and LD 1370.

The proposal that military benefits not be subject to the reduction for social security and railroad retirement benefits was included in the Part 1 Budget Bill. See LD 300, Public Law 2001, chapter 358, Part CC summarized under the Joint Standing Committee on Appropriations and Financial Affairs.

LD 944

An Act to Provide Equity in the Payment of Excise Tax on Leased Special Mobile Equipment

PUBLIC 238

LD 944 proposed to permit lessees of special mobile equipment who pay the excise tax on special mobile equipment to pay 1/2 the annual tax if the lease is for 4 months or less.

Committee Amendment "A" (H-305) proposed to replace the original bill and permit municipalities, by ordinance, to refund a portion of the excise tax paid on leased special mobile equipment if the registration is voluntarily surrendered and cancelled.

Enacted Law Summary:

Public Law 2001, chapter 238 permits municipalities, by ordinance, to refund a portion of the excise tax paid on leased special mobile equipment if the registration is voluntarily surrendered and cancelled.

LD 949

An Act to Fairly Distribute the Payment of Real Estate Transfer Taxes

DIED ON ADJOURNMENT

LD 949 proposed to increase the portion of the real estate transfer tax that is retained by the county from 10% to 25%, phased in over 5 years.

Committee Amendment "A" (H-154) proposed to replace the original bill and permit municipalities, by ordinance, to refund a portion of the excise tax paid on leased special mobile equipment if the registration is voluntarily surrendered and cancelled.

LD 970

Resolve, Establishing an Education Funding Reform Committee to Make Recommendations to Reduce the State's Reliance on the Property Tax as a Funding Source for Education

DIED ON ADJOURNMENT

LD 970 was a concept draft that proposed to cap the mill rate on property taxes earmarked for education at 4 mills for primary residences and business properties. The intent of this bill was to equalize the levy of property taxes, sales taxes and the personal income tax. The revenues lost by implementing this change would be made up by increasing the sales tax and eliminating selected exemptions as recommended by the Joint Standing Committee on Taxation or by an alternative plan to be recommended by the Joint Standing Committee on Taxation.

The changes proposed by the bill would be phased in over a 3-year period by decreasing the property tax rate 1/3 of its present rate each year for 3 years.

A commission to study the issues presented by this bill was enacted in the Part 2 Budget Bill. See LD 855, Public Law 2001, chapter 439, Part SSS, summarized under the Joint Standing Committee on Appropriations and Financial Affairs.

LD 980

An Act to Provide Property Tax Relief to Senior and Disabled Citizens of the State

ONTP

LD 980 proposed to freeze the just value of homesteads owned by persons who are disabled or who are at least 65 years of age with gross income of $25,000 or less if single or $32,500 if married.

See also LD 657.

LD 1007

An Act to Change the Party Responsible for Payment of a Penalty under the Tree Growth Tax Law when a Subdivision Results in a Parcel of Less than 10 Acres

PUBLIC 305

LD 1007 proposed to remove land from the tree growth, farmland and open space current use taxation classifications if that land received subdivision approval after the land's classification as forest land or farmland and open space and the subdivision approval is granted on or after April 1, 2002.

Committee Amendment "A" (S-141) proposed to replace the original bill and provide that, when a withdrawal of a parcel of land from classification under the Maine Tree Growth Tax Law is caused by a transfer of a parcel of less than 10 acres, the responsibility for payment of the penalty is with the transferor rather than the owner of the transferred parcel.

House Amendment "A" To Committee Amendment "A" (H-431) provided that the change in incidence of the withdrawal penalty would apply to transfers of land on or after November 1, 2001.

Enacted Law Summary:

Public Law 2001, chapter 305 provides that, when a withdrawal of a parcel of land from classification under the Maine Tree Growth Tax Law is caused by a transfer of a parcel of less than 10 acres, the responsibility for payment of the penalty is with the transferor rather than the owner of the transferred parcel. This provision applies to transfers of land on or after November 1, 2001.

LD 1028

An Act to Conform the Maine Tax Laws for 2000 with the United States Internal Revenue Code

PUBLIC 441 EMERGENCY

LD 1028 proposed to update references contained in the Maine Revised Statutes, Title 36 to the Internal Revenue Code as amended through December 31, 2000 for tax years beginning on or after January 1, 2000.

Committee Amendment "A" (H-106) proposed to add a fiscal note to the bill.

Enacted Law Summary:

Public Law 2001, chapter 441 updates references contained in the Maine Revised Statutes, Title 36 to the Internal Revenue Code as amended through December 31, 2000 for tax years beginning on or after January 1, 2000.

LD 1029

An Act to Amend the Law Pertaining to Tax Exemptions for Public and Private Pensions

ONTP

LD 1029 proposed to amend the $6000 income tax exemption for pension benefits to exempt benefits received under the Maine State Retirement System from the reduction for social security and railroad retirement benefits. See also LD 667, LD 717, LD 719, LD 810, LD 880, LD 914, LD 939, LD 1115 and LD 1370.

LD 1044

An Act to Exempt Bottled Water from State Sales Tax

DIED ON ADJOURNMENT

LD 1044 proposed to exempt from the sales tax sales of bottled water that is not carbonated or flavored.

Committee Amendment "A " (H-155) proposed to restrict the sales tax exemption to bottled water sold in containers of one gallon or more and excludes distilled water.

LD 1044 died on the Appropriations Table.

LD 1046

An Act Relating to the Taxation of Food

ONTP

LD 1046 proposed to repeal a provision of the sales tax law that imposes the sales tax on all food that is sold from a retail location from which food is ordinarily sold for consumption without further preparation or storage.

LD 1052

An Act to Prorate Excise Tax on Commercial Vehicles that are Rented

ONTP

LD 1052 proposed to permit a lessee of a commercial motor vehicle to pay a prorated excise tax on the vehicle based upon the number of months of the lease.

LD 1056

An Act to Enforce the Taxation of Building Materials and Modular Homes

PUBLIC 281

LD 1056 proposed to strengthen enforcement of the sales and use tax against Canadian companies doing business in the State by directing:

1. Municipalities and the Maine Land Use Regulation Commission to require proof of payment of the sales and use tax before issuing a certificate of occupancy or compliance;

2. The Department of Transportation to post signs at Canadian border crossings informing travelers entering the State of the sales and use tax requirements;

3. The Secretary of State to forward a copy of every overland movement permit issued to the Department Administrative and Financial Services, Bureau of Revenue Services; and

4. The Bureau of Revenue Services to contact Canadian officials, trade organizations and accounting firms and companies informing them of the requirement of the sales and use tax and encouraging registration and voluntary compliance, to audit Canadian companies suspected of violating the sales and use tax requirements and to conduct spot checks at the border for Canadian companies suspected of violating the sales and use tax requirements.

Committee Amendment "A " (S-171) proposed to replace the original bill and to reinstate a requirement that installers of manufactured housing file monthly reports of installations with the Department of Professional and Financial Regulation, Manufactured Housing Board and to require the board to send copies of those reports and reports relating to the use of warranty seals to the Department of Administrative and Financial Services, Bureau of Revenue Services. The amendment also proposed to require that persons seeking manufacturer or dealer licenses from the Manufactured Housing Board demonstrate that they are registered for the collection of sales and use tax or are not required to register.

Enacted Law Summary:

Public Law 2001, chapter 281 reinstates a requirement that installers of manufactured housing file monthly reports of installations with the Department of Professional and Financial Regulation, Manufactured Housing Board and requires the board to send copies of those reports and reports relating to the use of warranty seals to the Department of Administrative and Financial Services, Bureau of Revenue Services. The Act also requires that persons seeking manufacturer or dealer licenses from the Manufactured Housing Board demonstrate that they are registered for the collection of sales and use tax or are not required to register.

LD 1057

An Act to Clarify the Definition of "Charitable Institution" for Purposes of Property Tax Exemption

ONTP

LD 1057 proposed to replace the property tax exemption for benevolent and charitable institutions with an exemption for property owned by an organization that is exempt from federal income tax under Section 501(c)(3) of the United States Internal Revenue Code except that any portion of the property that is used to generate unrelated business taxable income would be subject to property tax.

LD 1061

An Act to Reduce Tree Growth Tax Benefits to Landowners Who Employ Migrant Workers

ONTP

LD 1061 proposed to require the imposition of a penalty on an owner of a parcel of forest land assessed under the tree growth tax law who employs migrant workers when there are other workers available who are not migrant workers. The penalty would be equal to 25% of the taxes that would have been assessed on the parcel had the parcel been assessed at its fair market value.

LD 1062

An Act to Reduce Tree Growth Tax Benefits to Landowners Who Restrict Access to Their Land

ONTP

LD 1062 proposed to require the imposition of a penalty on an owner of a parcel of forest land classified under the tree growth tax law who restricts access or imposes a fee for noncommercial access to that land. The penalty would be equal to 25% of the taxes that would have been assessed on the parcel had the parcel been assessed at its fair market value.

LD 1063

An Act to Exempt Maine State Retirement System Employee Contributions from State Income Tax

DIED ON ADJOURNMENT

LD 1063 proposed to exclude from state income tax employer pick-up contributions paid to the Maine State Retirement System for an employee.

Committee Amendment "A" (H-215) proposed to make the exclusion applicable to tax years beginning on or after January 1, 2003.

This bill died on the Appropriations Table.

LD 1096

An Act to Amend the Public Property Tax Exemption

ONTP

LD 1096 proposed to amend the property tax exemption for property owned by and located outside of the territory of certain public municipal corporations supplying water, power and light by providing that the exemption would not apply to real estate including buildings, foundations and surrounding improvements.

LD 1108

An Act Regarding the Assessment and Collection of Real Estate Property Taxes

ONTP

LD 1108 proposed to require a municipal tax assessor to change the municipal tax records to reflect the identity of a new owner when property is transferred and to send a notice of tax liability to the new owner.

LD 1109

An Act to Clarify Conditions of Eligibility for Property Tax Exemptions for Benevolent and Charitable Institutions

ONTP

LD 1109 proposed standards of eligibility for property tax exemption as a benevolent and charitable institution. The Bureau of Revenue Services would be required to prepare guidelines to assist municipal assessors in determining eligibility for exemption as a benevolent and charitable institution.

See also LD 1375.

LD 1113

RESOLUTION, Proposing an Amendment to the Constitution of Maine to Permit a Parcel of Land to be Withdrawn from the Maine Tree Growth Tax Program after 20 Years Without Penalty

ONTP

LD 1113 proposed to amend the Maine Constitution to permit a person to withdraw without penalty a parcel of land that has been enrolled in the Maine Tree Growth Tax Law for at least 20 years.

LD 1115

An Act to Exempt a Portion of Certain Pensions From the State Income Tax

ONTP

LD 1115 proposed to increase the income tax exemption for pension income from $6,000 to $10,000 and remove the provision that reduces the amount of the exemption by the total amount of social security and railroad retirement benefits received. See also LD 667, LD 717, LD 719, LD 810, LD 880, LD 914, LD 939, LD 1029 and LD 1370.

LD 1129

An Act to Allow an Income Tax Deduction for the Cost of Health Insurance Premiums

ONTP

LD 1129 proposed to establish a state income tax credit for up to 50% of health insurance premiums paid by individuals.

LD 1148

An Act to Implement the Recommendations of the Maine Millennium Commission on Hunger and Food Security to Expand the Maine Earned Income Tax Credit Program to Make It Refundable and Increase the Amount of Benefit a Family Can Receive

ONTP

LD 1148 proposed to increase the earned income tax credit from 5% of the federal credit to 15% in 2002 and 25% in 2003 and to make the credit refundable.

See also LD 17.

LD 1161

An Act to Make Higher Education More Affordable for Maine Families

ONTP

LD 1161 proposed to create a state income tax deduction for tuition paid for full-time attendance at a postsecondary educational institution in Maine. The maximum deduction would be $10,000 for each student who is a Maine resident that the taxpayer claims as a personal exemption.

LD 1196

An Act to Promote Equitable Distribution of Motorboat Gas Tax Revenues to the Department of Marine Resources and the Boating Facility Fund

ONTP

LD 1196 proposed to remove the statutory cap of $2,000,000 on the 2% of revenue generated by the sales tax on gasoline sold to motorboat users that is dedicated to the Department of Marine Resources for research and development and to the Bureau of Parks and Lands Boating Facilities Fund.

LD 1200

An Act to Direct that a Percentage of Revenue That the State Receives Be Allocated to Community Forestry

DIED ON ADJOURNMENT

LD 1200 proposed to establish the Community Forestry Fund under the Maine Revised Statutes, Title 12, section 8705 and provide for the distribution of a portion of real estate transfer tax revenues, up to $400,000 annually reduced by federal funding, to the fund to be administered by the Department of Conservation, Bureau of Forestry to support the development and maintenance of community forestry activities.

Committee Amendment "A" (S-62) proposed to correct a drafting error by changing the portion of real estate transfer revenues paid to the Community Forestry Fund from 10% to 5% of the General Fund share of revenues from that tax and retaining the cap of $400,000.

The provisions of this bill with a cap of $200,000 were included in the Part 2 Budget Bill. See LD 855, Public Law 2001, chapter 439, Part XXX, summarized under the Joint Standing Committee on Appropriations and Financial Affairs.

LD 1206

An Act to Adjust Taxation for Fire Suppression

ONTP

LD 1206 proposed to reduce the amount of revenue collected through the forest fire suppression tax from 40% to 25% of total State forest fire suppression costs.

LD 1230

An Act to Continue the Sales Tax Exemption on Vehicles Sold and Leased and Removed from the State

CARRIED OVER

LD 1230 proposed to repeal the sunset of June 30,2001 on the sales tax exemption leases of certain motor vehicles to nonresidents.

When removed from the Appropriations Table the bill was referred to the Joint Standing Committee on Appropriations and Financial Affairs and carried over to the Second Regular Session.

LD 1248

An Act to Bring Equity to the Vehicle Excise Tax

ONTP

LD 1248 proposed to require that the excise tax for motor vehicles and campers be based upon the purchase price of the vehicle rather than the maker's list price. Either the original bill of sale or the state sales tax document could be used to certify the purchase price.

LD 1260

An Act to Require Accountability for Tax Expenditures Invested on Behalf of Taxpayers

ONTP

LD 1260 proposed to require future applicants for municipal tax increment financing, the jobs and investment tax credit, the research expense tax credit and business property tax reimbursement to certify that they pay hourly wages that are at least 1/60th of the average weekly wage for the county where the employee is based and provide health insurance benefits. The bill also proposed a waiver if the failure to meet the required standards results from economic hardship beyond the control of the claimant.

LD 1274

An Act to Increase the Dedicated Wild Blueberry Tax

PUBLIC 147 EMERGENCY

LD 1274 proposed to increase the total rate of tax on wild blueberries from 1¢ to 1 1/2¢ per pound. The increase is distributed equally to processors or shippers and growers of wild blueberries with each paying an additional 1/4¢ tax per pound.

Committee Amendment "A" (H-243) proposed to add emergency provisions.

Enacted Law Summary:

Public Law 2001, chapter 147 increases the total rate of tax on wild blueberries from 1¢ to 1 1/2¢ per pound. The increase is distributed equally to processors or shippers and growers of wild blueberries with each paying an additional 1/4¢ tax per pound. This bill was enacted as an emergency measure and took effect May 14, 2001.

LD 1298

An Act Providing for Enhancements to the Maine Seed Capital Tax Credit Program

PUBLIC 446

LD 1298 proposed to amend the Maine Seed Capital Tax Credit Program by increasing the amount of the tax credit from 30% to 40% of an eligible investment, authorizing the use of the credit for investments in certain private venture capital funds and allowing the credit to flow through certain entities to the underlying taxpayer. In addition, the bill proposed to increase the total authorized amount of tax credits that may be issued under the program from $8,000,000 to $12,000,000 over a 4-year period.

Committee Amendment "A" (H-217) proposed that new seed capital tax credits be spread over 4 taxable years rather than 2 taxable years and that the Finance Authority of Maine report to the joint standing committee of the Legislature having jurisdiction over taxation matters in each of the next 2 years.

House Amendment "A" (H-358) proposed to correct a reporting date.

Senate Amendment "A" to Committee Amendment "A" (S-383) proposed to change the number of years over which a tax credit may be taken from 2 to 7.

Enacted Law Summary:

Public Law 2001, chapter 446 amends the Maine Seed Capital Tax Credit Program by increasing the amount of the tax credit from 30% to 40% of an eligible investment, authorizing the use of the credit for investments in certain private venture capital funds and allowing the credit to flow through certain entities to the underlying taxpayer. In addition, the bill increases the total authorized amount of tax credits that may be issued under the program from $8,000,000 to $12,000,000 over a 4-year period, requires that the credit be spread out over 7 years rather than 2 years and requires the Finance Authority of Maine report to the joint standing committee of the Legislature having jurisdiction over taxation matters in each of the next 2 years.

LD 1329

An Act to Establish Standards of Depreciation in Determining the Assessed Value of Personal Property in the Business Equipment Reimbursement Program

ONTP

LD 1329 proposed that reimbursement for personal property taxes under the business equipment tax reimbursement program be limited to the lower of taxes paid on the eligible property or the taxes that would have been paid if the property tax assessment was based on the adjusted basis of the eligible property for federal income tax purposes.

LD 1342

An Act to Enhance, Upgrade and Encourage Passenger Rail Service in Maine through the Creation of a Rail Trust Fund

ONTP

LD 1342 proposed to create the Passenger Rail Trust Fund to be used for maintenance and improvements to passenger rail infrastructure, the purchase or lease of real property to support passenger rail service, operating assistance to passenger rail service providers offering service in Maine, a tax-credit incentive for on-time service performance by passenger rail service providers offering service in Maine and passenger rail planning provided by the Department of Transportation.

Proposed sources of funds included all excise tax revenues collected from railroad companies, use tax revenues on special fuel tax refunds collected from railroad companies and a surtax collected from railroad companies that use infrastructure supported by the fund based on passenger use per track-mile.

This bill was jointly referred to the Joint Standing Committee on Taxation and the Joint Standing Committee on Transportation.

LD 1370

An Act to Increase the Tax Deduction Benefit for Retired Teachers to $10,000

ONTP

LD 1370 proposed to increase the amount of the income tax deduction for pension income received by retired teachers in the Maine State Retirement System from $6,000 to $10,000 annually.

See also LD 667, LD 717, LD 719, LD 810, LD 880, LD 914, LD 939, LD 1029 and LD 1115.

LD 1375

An Act to Establish Minimum Standards of Eligibility for the Property Tax Exemption for Charitable Institutions

ONTP

LD 1375 proposed to establish standards for qualification for a property tax exemption as a nonprofit benevolent and charitable institution. An institution would qualify only if it donates or renders gratuitously a substantial portion of its services. The institution could meet that standard in one of the following 5 ways.

1. The institution must provide goods and services to all who seek them without regard to ability to pay;

2. The institution must provide goods and services for fees that are based on the recipients' ability to pay;

3. The institution must provide wholly gratuitous goods and services to at least 5% of those receiving similar goods and services from the institution;

4. The institution must provide uncompensated goods or services that in the aggregate are equal to at least 5% of the institution's cost of providing goods or services; or

5. The institution must provide goods or services at no fee or a reduced fee to nonprofit agencies or individuals eligible for government programs.

See also LD 1109.

LD 1381

An Act to Extend the Homestead Property Tax Exemption to Persons Living in Cooperative Housing

ONTP

LD 1381 proposed to allow a permanent residence that is a cooperative interest in a cooperative affordable housing corporation to qualify for the homestead property tax exemption.

LD 1410

RESOLUTION, Proposing an Amendment to the Constitution of Maine to Repeal Constraints on the Property Tax and to Make the State Jointly Responsible with Municipalities for Equity in Education

ONTP

LD 1410 proposed to amend the Constitution of Maine by repealing provisions requiring that property taxes be assessed equally and according to just value and requiring the State to reimburse municipalities for at least 50% of the revenue loss from property tax exemptions enacted after April 1, 1978. The proposal would also require the State to share in the responsibilities to provide reasonable access to suitable, uniformly high-quality educational opportunities and require the cost of supporting public education to be equitably allocated among the regions, citizens and businesses of the State.

LD 1441

An Act to Provide Private Landowners Incentives for Conservation and Public Access

ONTP

LD 1441 proposed to allow a reduction in local property tax assessments under the farm and open space tax law for land that is wildlife habitat open space and to reimburse municipalities for lands enrolled as open space, including wildlife habitat open space.

The bill also proposed to create an income tax credit equal to 40% of the fair market value of land or an interest in land that is conveyed for the purpose of open space, natural resource or wildlife conservation or land, agricultural or watershed preservation if the conveyance qualifies as a charitable contribution under the United States Internal Revenue Code.

LD 1451

An Act to Remove the Tax on Food, Nonalcoholic Beverages and Medicine

ONTP

LD 1451 proposed to extend the sales tax exemption for grocery staples to include all food, including prepared food, candy and confections, nonalcoholic beverages, medicines and vitamins.

LD 1497

An Act to Clarify the Definition of Commercial Agricultural Production

ONTP

LD 1497 proposed to establish a definition of "commercial agricultural production" for purposes of the laws governing the sales tax exemption for products used in agricultural production and the sales tax refund or exemption for depreciable machinery and equipment and electricity used in commercial agricultural production. The definition would expand the sales tax benefits to include additional agricultural activities including certain horticultural and forestry activities.

See also LD 13 and LD 36.

LD 1534

An Act to Prohibit Grocery Stores From Charging Maine Farmers Access Fees, Slotting Fees and Rebates

CARRIED OVER