An Act To Amend the Tax Laws
Sec. 1. 36 MRSA §111, sub-§1-C, as enacted by PL 2011, c. 694, §2, is amended to read:
Sec. 2. 36 MRSA §112, sub-§7-A, as amended by PL 2001, c. 396, §2, is further amended to read:
Sec. 3. 36 MRSA §144, sub-§1, as amended by PL 2011, c. 1, Pt. DD, §1 and affected by §4, is further amended to read:
Sec. 4. 36 MRSA §151-A, sub-§2, as enacted by PL 1989, c. 848, §4, is amended to read:
Sec. 5. 36 MRSA §175, sub-§2, as amended by PL 2011, c. 380, Pt. J, §8, is further amended to read:
Sec. 6. 36 MRSA §175, sub-§6, as amended by PL 2009, c. 496, §5, is further amended to read:
Sec. 7. 36 MRSA §187-B, sub-§6, as amended by PL 2007, c. 693, §6, is further amended to read:
Sec. 8. 36 MRSA §1760, sub-§45, as corrected by RR 2011, c. 2, §40, is amended to read:
Property, other than automobiles, watercraft, snowmobiles, all-terrain vehicles and aircraft, that is required to be registered for use in this State does not qualify for this exemption unless it was registered by its present owner outside this State more than 12 months prior to its registration in this State. If property required to be registered for use in this State was not required to be registered for use outside this State, the owner must be able to document actual use of the property outside this State for more than 12 months prior to its registration in this State. For purposes of this subsection, "use" does not include storage but means actual use of the property for a purpose consistent with its design.
Sec. 9. 36 MRSA §1764, as amended by PL 2011, c. 548, §17, is further amended to read:
§ 1764. Tax against certain casual sales
The tax imposed by this Part must be levied upon all casual rentals of living quarters in a hotel, rooming house, tourist camp or trailer camp and upon all casual sales involving the sale of trailers, truck campers, motor vehicles, special mobile equipment, watercraft or aircraft unless the property is sold for resale at retail sale or to a corporation, partnership, limited liability company or limited liability partnership when the seller is the owner of a majority 50% or more of the common stock of the corporation or of the ownership interests in the partnership, limited liability company or limited liability partnership. This section does not apply to the rental of living quarters rented for a total of fewer than 15 days in the calendar year, except that a person who owns and offers for rental more than one property in the State during the calendar year is liable for collecting sales tax with respect to the rental of each unit regardless of the number of days for which it is rented. For purposes of this section, "special mobile equipment" does not include farm tractors and lumber harvesting vehicles or loaders.
Sec. 10. 36 MRSA §2011, 2nd ¶, as amended by PL 2005, c. 218, §29, is further amended to read:
A taxpayer dissatisfied with the decision of the assessor, upon a written request for refund filed under this section may request reconsideration and appeal from the reconsideration to the Superior Court in the same manner and under the same conditions as in the case of assessments made under chapter 7. The decision of the assessor upon a written request for refund becomes final as to law and fact in the same manner and under the same conditions as in the case of assessments made under chapter 7.
Sec. 11. 36 MRSA §2515, as amended by PL 2007, c. 240, Pt. KKKK, §3 and affected by §7, is further amended to read:
§ 2515. Amount of tax
In determining the amount of tax due under section sections 2513 and 2531, each company shall deduct from the full amount of gross direct premiums the amount of all direct return premiums on the gross direct premiums and all dividends paid to policyholders on direct premiums, and the tax must be computed by those companies or their agents. Except when direct return premiums are returned in the same tax year that the premium was paid, the deduction allowed in this section may be taken only if the tax under this Part has been paid.
Sec. 12. 36 MRSA §2555, 2nd ¶, as enacted by PL 2003, c. 673, Pt. V, §25 and affected by §29, is amended to read:
A taxpayer dissatisfied with the decision of the assessor, upon a written request for refund filed under this section, may request reconsideration and appeal from the reconsideration to the Superior Court in the same manner and under the same conditions as in the case of assessments made under chapter 7. The decision of the assessor upon such written request for refund becomes final as to law and fact in the same manner and under the same conditions as in the case of assessments made under chapter 7.
Sec. 13. 36 MRSA §4075-A, sub-§1, as amended by PL 2011, c. 1, Pt. DD, §2 and affected by §4, is further amended to read:
Sec. 14. 36 MRSA §4102, sub-§1, as enacted by PL 2011, c. 380, Pt. M, §9, is amended to read:
Sec. 15. 36 MRSA §4107, sub-§2, ¶B, as enacted by PL 2011, c. 380, Pt. M, §9, is amended to read:
Sec. 16. 36 MRSA §4115, sub-§1, as enacted by PL 2011, c. 380, Pt. M, §9, is amended to read:
Sec. 17. 36 MRSA §4302, sub-§2, as amended by PL 1997, c. 511, §7, is further amended to read:
Sec. 18. 36 MRSA §4302, sub-§3, as amended by PL 1997, c. 511, §8, is further amended to read:
Sec. 19. 36 MRSA §4302, sub-§5-A is enacted to read:
Sec. 20. 36 MRSA §4303, as amended by PL 2001, c. 147, §1, is further amended to read:
§ 4303. Rate of tax
There is levied and imposed a tax at the rate of 3/4¢ 1 1/2¢ per pound of fresh fruit on all fresh wild blueberries grown, purchased, sold, handled or processed in this State and on all unprocessed wild blueberries shipped to a destination outside this State. The tax is computed on a fresh fruit basis, regardless of how the gross weight of the wild blueberries are processed as delivered prior to any processing or shipping. The processor that first receives unprocessed wild blueberries in the State, or the shipper that transports unprocessed wild blueberries to a destination outside the State, is responsible for reporting and paying the tax.
A processor or shipper responsible for reporting and paying the tax imposed by this section shall charge and collect 1/2 of the tax levied under this section.
Sec. 21. 36 MRSA §4303-A, as amended by PL 2001, c. 147, §2, is repealed.
Sec. 22. 36 MRSA §4304, as amended by PL 1997, c. 511, §13, is repealed.
Sec. 23. 36 MRSA §4305, sub-§3, ¶A, as enacted by PL 2007, c. 694, §5, is amended to read:
Sec. 24. 36 MRSA §4306, as amended by PL 2001, c. 147, §3, is repealed.
Sec. 25. 36 MRSA §4307, as amended by PL 2001, c. 147, §4, is further amended to read:
§ 4307. Records and reports; payment of tax
Every processor or shipper responsible for reporting and paying the tax imposed by section 4303 shall, on or before November 1st of each year, report to the State Tax Assessor the quantity of wild blueberries grown, purchased or sold by that processor or shipper processed in this State or shipped to a destination outside the State during the current season, on forms furnished by the State Tax Assessor. The report must contain the information pertinent to the purchase or sale collection of tax under this chapter as the State Tax Assessor prescribes. With the report, each processor or shipper shall forward payment of the tax at the rate of full 1 1/2¢ per pound tax upon all wild blueberries reported as grown, sold or purchased.
Sec. 26. 36 MRSA §4311-A, first ¶, as amended by PL 1997, c. 511, §18, is further amended to read:
Money received from the tax levied by sections section 4303 and 4303-A must be appropriated for the following purposes:
Sec. 27. 36 MRSA §4311-A, sub-§1-A, as enacted by PL 1997, c. 511, §18, is amended to read:
Sec. 28. 36 MRSA §4402, sub-§5, as enacted by PL 2005, c. 627, §7, is amended to read:
Sec. 29. 36 MRSA §5122, sub-§2, ¶HH, as amended by PL 2011, c. 644, §16 and affected by §32, is further amended to read:
Sec. 30. 36 MRSA §5122, sub-§2, ¶LL, as enacted by PL 2011, c. 657, Pt. M, §1 and affected by §2, is repealed and the following enacted in its place:
(1) For active duty service in the active components of the United States Army, Navy, Air Force, Marines or Coast Guard by a service member whose permanent duty station during such service is located outside of this State; and
(2) For active duty service in the active or reserve components of the United States Army, Navy, Air Force, Marines or Coast Guard or in the Maine National Guard by a service member in support of a federal operational mission or a declared state or federal disaster response when the orders are either at federal direction or at the direction of the Governor of this State.
Sec. 31. 36 MRSA §5203-C, sub-§4, ¶A, as amended by PL 2011, c. 644, §27 and affected by §32, is further amended to read:
Sec. 32. 36 MRSA §5219-N, as amended by PL 2003, c. 673, Pt. JJ, §5 and affected by §6, is repealed.
Sec. 33. 36 MRSA §5219-GG, sub-§1, ¶G, as repealed by PL 2011, c. 548, §32 and affected by §36 and amended by c. 563, §13, is repealed.
Sec. 34. 36 MRSA §5219-HH, sub-§1, ¶G, as enacted by PL 2011, c. 548, §33 and affected by §35, is amended to read:
(1) At least 50% of the total gross income of the entity was derived from the active conduct of business activity of the entity within any municipality where the average annual unemployment rate for that year was higher than the state average unemployment rate;
(2) A substantial portion of the use of the tangible property of the entity was within any location of the State where the average annual unemployment rate for that year was higher than the state average unemployment rate; or
(3) A substantial portion of the services performed by the entity by its employees was performed in a municipality where the average annual unemployment rate for that year was higher than the state average unemployment rate.
Sec. 35. 36 MRSA §5280, as amended by PL 1993, c. 395, §24 and affected by §32, is further amended to read:
§ 5280. Refund claim
Every claim for refund must be filed with the assessor in writing and state the specific grounds upon which it is founded. The taxpayer may in writing along with the refund claim request an informal conference regarding the claim for refund, in which case the claim for refund is considered a request for reconsideration of an assessment under section 151 filed as of the date the refund claim is filed and is decided pursuant to section 151. If the taxpayer has not requested a conference and the assessor denies the refund claim in whole or in part, or the refund claim is deemed denied under section 5282, the taxpayer may request reconsideration of the denial or deemed denial of the refund claim pursuant to section 151.
Sec. 36. 36 MRSA §5282, as repealed and replaced by PL 1993, c. 395, §25 and affected by §32, is amended to read:
§ 5282. Refund claim deemed denied
If the assessor fails to mail to the taxpayer, within 6 months after the filing of a refund claim with respect to which no conference has been requested pursuant to section 5280, a decision on that refund claim, the taxpayer may elect but is not obligated, prior to receipt by the taxpayer of the assessor's decision on the refund claim, to deem the claim denied. The taxpayer deems the refund claim denied by requesting reconsideration of the deemed denial pursuant to section 151.
Sec. 37. Application. That section of this Act that amends the Maine Revised Statutes, Title 36, section 4102, subsection 1 applies to estates of decedents dying on or after January 1, 2013. That section of this Act that repeals and replaces Title 36, section 5122, subsection 2, paragraph LL applies to tax years beginning on or after January 1, 2014. That section of this Act that repeals Title 36, section 5219-N applies to tax years beginning on or after January 1, 2013.
Sec. 38. Retroactivity. Those sections of this Act that amend the Maine Revised Statutes, Title 36, section 111, subsection 1-C; Title 36, section 112, subsection 7-A; Title 36, section 144, subsection 1; Title 36, section 151-A, subsection 2; Title 36, section 175, subsections 2 and 6; Title 36, section 2011; Title 36, section 2555; Title 36, section 4075-A, subsection 1; Title 36, section 4115, subsection 1; Title 36, section 4402, subsection 5; Title 36, section 5280; and Title 36, section 5282 apply retroactively to May 25, 2012. That section of this Act that amends Title 36, section 5203-C, subsection 4, paragraph A applies retroactively to tax years beginning on or after January 1, 2012. Those sections of this Act that repeal Title 36, section 5219-GG, subsection 1, paragraph G and amend Title 36, section 5219-HH, subsection 1, paragraph G apply retroactively to August 30, 2012.
summary
This bill makes the following changes to the laws governing taxation.
1. It clarifies that in the Maine Revised Statutes, Title 36 "board" refers to the Maine Board of Tax Appeals only in certain provisions.
2. It clarifies language regarding a taxpayer's appeal rights by eliminating references to an informal conference. It also clarifies that a taxpayer is not limited to filing an appeal with the Superior Court when appealing a reconsideration decision. It makes those changes retroactive.
3. It corrects a reference to the state telecommunications excise tax under Title 36, section 187-B.
4. It deletes an obsolete reference to watercraft under Title 36, section 1760, subsection 45.
5. It amends the law applying the sales and use tax to casual sales of certain items, including automobiles, so that the tax does not apply when the purchaser is a corporation or other business entity and the seller owns 50% or more of the stock or other ownership interests of the purchaser.
6. It adds to the law governing the method of computing the amount of tax imposed on the gross direct premiums from insurance contracts a cross-reference to a recently enacted provision of law regarding taxation of nonadmitted insurance coverage.
7. It removes the requirement to modify the federal gross estate by the Maine qualified terminable interest property in order to avoid skewing the ratio that is applied to determine the Maine estate tax.
8. It amends the Maine estate tax law related to estates of decedents dying after 2012 pertaining to the filing requirement for the Maine estate tax to include Maine elective property and only gifts made within one year before death.
9. It simplifies and clarifies the statutory provisions that impose the Maine blueberry tax and associated reporting requirements.
10. It amends the provision regarding the income subtraction modification of military survivor benefit payments to clarify that the modification is limited to benefits paid on a death resulting from military service. It also adds a cross-reference to the individual income tax pension deduction law that applies to tax years beginning after 2013.
11. It repeals and replaces the provision regarding the income subtraction modification for non-Maine active duty military pay in order to clarify under what conditions the military pay is eligible for the modification.
12. It repeals the definition of a term relevant to the new markets capital investment credit that was erroneously included in the section of law governing the Maine capital investment credit and inserts that definition into the relevant provision. These changes are made retroactive to the effective date of the law enacting the new markets capital investment credit.
13. It deletes changes to the minimum tax credit made in Public Law 2011, chapter 644, section 27 that require the credit to be reduced by certain other refundable tax credits claimed by the taxpayer.