Sec. A-1. 36 MRSA §142, as amended by PL 1997, c. 504, §2, is further amended to read:
§142. Cancellation and abatement
The State Tax Assessor may, within 3 years from the date of assessment, or whenever a written request has been submitted by a taxpayer within 3 years of the date of assessment, cancel any tax that has been levied illegally. In addition, if justice requires, the State Tax Assessor assessor may, with the approval of the Governor or the Governor's designee, abate within 3 years from the date of assessment, or whenever a written request has been submitted by a taxpayer within 3 years of the date of assessment, all or any part of any tax assessed by the State Tax Assessor assessor.
Sec. A-2. 36 MRSA §187-B, sub-§1, as amended by PL 1995, c. 657, §7 and affected by §10, is further amended to read:
1. Failure to file return. Any person who fails to make and file any return required under this Title at or before the time the return becomes due is liable for one of the following penalties if the person's tax liability shown on such return or otherwise determined to be due is greater than $25.
A. If the return is filed before or within 30 days after the taxpayer receives from the State Tax Assessor assessor a formal demand that the return be filed, or if the return is not filed but the tax due is assessed by the assessor before the taxpayer receives from the assessor a formal demand that the return be filed, the penalty is $25 or 10% of the tax due, whichever is greater.
B. If the return is not filed later than within 30 days after the taxpayer receives from the State Tax Assessor assessor a formal demand that the return be filed, the penalty is 100% of the tax due.
C. If the return is not filed and the State Tax Assessor assessor issues a jeopardy assessment pursuant to section 141, subsection 2, paragraph D, the penalty is 100% of the tax due.
Sec. A-3. 36 MRSA §187-B, sub-§2, ¶A, as amended by PL 1995, c. 281, §8, is further amended to read:
A. Any person who fails to pay, on or before the due date, any amount shown as tax on any return required under this Title or on any assessment made against the person is liable for a penalty of 1% of the unpaid tax for each month or fraction of a month during which the failure continues, to a maximum in the aggregate of 25% of the unpaid tax.
Sec. A-4. 36 MRSA §841, sub-§8, as enacted by PL 1979, c. 73, is amended to read:
8. Approval of the Governor. The State Tax Assessor may abate taxes under this section only with the approval of the Governor or the Governor's designee.
Sec. A-5. 36 MRSA §1752, sub-§15 is amended to read:
15. Storage. "Storage" includes any keeping or retention in this State for any purpose, except subsequent use outside of this State, of tangible personal property purchased at retail sale.
Sec. A-6. 36 MRSA §1760, as amended by PL 1999, c. 286, §1, is further amended by amending the first paragraph to read:
No Subject to the provisions of section 1760-C, no tax on sales, storage or use shall may be collected upon or in connection with:
Sec. A-7. 36 MRSA §1760, sub-§81 is enacted to read:
81. Sales of certain printed materials. Sales of advertising or promotional materials printed on paper and purchased for the purpose of subsequently transporting such materials outside the State for use by the purchaser thereafter solely outside the State.
Sec. A-8. 36 MRSA §1760-C is enacted to read:
Unless otherwise provided by section 1760, the sales or use tax exemptions provided by that section to a purchaser apply only if the property or service sold is intended to be used by the purchaser primarily in the activity identified by the particular exemption. Exemption certificates issued by the State Tax Assessor pursuant to section 1760 must identify the exempt activity and must state that the certificate may be used by the holder only to purchase property or services intended to be used by the holder primarily in the exempt activity. When an otherwise qualifying exempt person is engaged in both exempt and nonexempt activities, an exemption certificate may be issued to the person only if the person has established to the satisfaction of the assessor that the applicant has adequate accounting controls to limit the use of the certificate to exempt purchases.
Sec. A-9. 36 MRSA §1861-A, as corrected by RR 1991, c. 2, §133, is amended to read:
§1861-A. Reporting use tax on individual income tax returns
The assessor shall provide that individuals report use tax on their Maine individual income tax returns. Taxpayers are required to attest to the amount of their use tax liability for the period of the tax return. Alternatively, they may elect to report an amount that is .04% of their Maine adjusted gross income. The table amount does not relate to items with a purchase price in excess of $1,000. Liability arising from such items must be added to the table amount. If a taxpayer fails to attest to an alternate liability on the return, the taxpayer is subject to an increase in income tax liability amounting to .04% of the taxpayer's Maine adjusted gross income. Upon subsequent review, if use tax liability for the period of the return exceeds the amount of liability arising from the return, a credit of the amount of liability arising from the return is allowed subject to the limitation set out in this section. The credit is limited to the amount of liability arising from the return for items with a sales price of $1,000 or less and may be applied only against a liability determined on review with regard to items with a sales price of $1,000 or less.
Sec. A-10. 36 MRSA §4064, first ¶, as amended by PL 1995, c. 281, §22, is further amended to read:
A tax is imposed upon the transfer of real property and tangible personal property situated in this State and upon the transfer of tangible personal property located in this State of every person and held by an individual who at the time of death was not a resident of this State. When real or tangible personal property has been transferred into a trust, the tax imposed by this section applies as if the trust did not exist and the property was personally owned by the decedent. Maine property is subject to the tax imposed by this section to the extent that such property is included in the decedent's gross estate as finally determined for federal estate tax purposes. The amount of this tax is a sum equal to that proportion of the credit for state death taxes provided by section the Code, Section 2011 of the code that the value of Maine real and tangible personal property taxed in this State that qualifies for the credit bears to the value of the decedent's total federal gross estate. All values are as finally determined for federal estate tax purposes. The share of the federal estate death tax credit used to determine the amount of the nonresident individual's estate tax under this section is computed without regard to whether the specific real or tangible personal property located in the State is marital deduction property.
Sec. A-11. Application. That section of this Part that amends the Maine Revised Statutes, Title 36, section 1752, subsection 15 and that section of this Part that enacts Title 36, section 1760, subsection 81 apply to all taxable periods that are open for purposes of administrative or judicial review. That portion of this Part that amends Title 36, section 1861-A applies to tax years beginning on or after January 1, 1999.
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