An Act To Equalize Tax Filing Status
Sec. 1. 36 MRSA §5102, sub-§1-E is enacted to read:
Sec. 2. 36 MRSA §5111, sub-§1-B, as enacted by PL 1999, c. 731, Pt. T, §3, is amended to read:
| If Maine Taxable income is: | The tax is: |
| Less than $4,200 | 2% of the Maine taxable income |
| At least $4,200 but less than $8,350 | $84 plus 4.5% of the excess over $4,200 |
| At least $8,350 but less than $16,700 | $271 plus 7% of the excess over $8,350 |
| $16,700 or more | $856 plus 8.5% of the excess over $16,700 |
Sec. 3. 36 MRSA §5111, sub-§1-C is enacted to read:
| If Maine Taxable income is: | The tax is: |
| Less than $4,750 | 2% of the Maine taxable income |
| At least $4,750 but less than $9,450 | $95 plus 4.5% of the excess over $4,750 |
| At least $9,450 but less than $18,950 | $307 plus 7% of the excess over $9,450 |
| $18,950 or more | $972 plus 8.5% of the excess over $18,950 |
Sec. 4. 36 MRSA §5111, sub-§2-B, as enacted by PL 1999, c. 731, Pt. T, §5, is amended to read:
| If Maine Taxable income is: | The tax is: |
| Less than $6,300 | 2% of the Maine taxable income |
| At least $6,300 but less than $12,500 | $126 plus 4.5% of the excess over $6,300 |
| At least $12,500 but less than $25,050 | $405 plus 7% of the excess over $12,500 |
| $25,050 or more | $1,284 plus 8.5% of the excess over $25,050 |
Sec. 5. 36 MRSA §5111, sub-§2-C is enacted to read:
| If Maine Taxable income is: | The tax is: |
| Less than $7,150 | 2% of the Maine taxable income |
| At least $7,150 but less than $14,200 | $143 plus 4.5% of the excess over $7,150 |
| At least $14,200 but less than $28,450 | $460 plus 7% of the excess over $14,200 |
| $28,450 or more | $1,458 plus 8.5% of the excess over $28,450 |
Sec. 6. 36 MRSA §5111, sub-§3-B, as enacted by PL 1999, c. 731, Pt. T, §7, is amended to read:
| If Maine taxable income is: | The tax is: |
| Less than $8,400 | 2% of the Maine taxable income |
| At least $8,400 but less than $16,700 | $168 plus 4.5% of the excess over $8,400 |
| At least $16,700 but less than $33,400 | $542 plus 7% of the excess over $16,700 |
| $33,400 or more | $1,711 plus 8.5% of the excess over $33,400 |
Sec. 7. 36 MRSA §5111, sub-§3-C is enacted to read:
| If Maine taxable income is: | The tax is: |
| Less than $9,500 | 2% of the Maine taxable income |
| At least $9,500 but less than $18,950 | $190 plus 4.5% of the excess over $9,500 |
| At least $18,950 but less than $37,950 | $615 plus 7% of the excess over $18,950 |
| $37,950 or more | $1,945 plus 8.5% of the excess over $37,950 |
Sec. 8. 36 MRSA §5122, sub-§2, ¶V, as amended by PL 2005, c. 644, §6, is further amended to read:
Sec. 9. 36 MRSA §5124-A, first ¶, as amended by PL 2005, c. 12, Pt. P, §5, is amended to read:
The standard deduction of a resident individual is equal to the standard deduction as determined in accordance with the Code, Section 63, except that for tax years beginning after 2002, the Code, Section 63(c)(2) must be applied as if the basic standard deduction is $5,000 in the case of a joint return and a surviving spouse and $2,500 in the case of a married individual or domestic partner filing a separate return.
Sec. 10. 36 MRSA §5203-C, sub-§1, ¶H, as enacted by PL 2003, c. 673, Pt. JJ, §3 and affected by §6, is amended to read:
(1) Except as provided in subparagraph (2), in the case of a taxpayer other than a taxable corporation, the sum of:
(a) An amount equal to 7% of so much of the alternative minimum taxable income as does not exceed $175,000; plus
(b) An amount equal to 7.6% percent of so much of the alternative minimum taxable income as exceeds $175,000.
For a nonresident individual, the tentative minimum tax must be adjusted in accordance with section 5111, subsection 4.
(2) In the case of a married individual or domestic partner filing a separate return, the sum of:
(a) An amount equal to 7% of so much of the alternative minimum taxable income as does not exceed $87,500; plus
(b) An amount equal to 7.6% percent of so much of the alternative minimum taxable income as exceeds $87,500.
For a nonresident individual, the tentative minimum tax must be adjusted in accordance with section 5111, subsection 4.
(3) In the case of a taxable corporation, the tentative minimum tax for the taxable year is 5.4% of the alternative minimum taxable income.
Sec. 11. 36 MRSA §5403, as repealed and replaced by PL 1999, c. 731, Pt. T, §10 and affected by §11, is further amended to read:
§ 5403. Annual adjustments for inflation
Beginning in 2002 2007, and each subsequent calendar year thereafter, on or about September 15th, the State Tax Assessor shall multiply the cost-of-living adjustment for taxable years beginning in the succeeding calendar year by the dollar amounts of the tax rate tables specified in section 5111, subsections 1-B, 2-B and 3-B 1-C, 2-C and 3-C. If the dollar amounts of each rate bracket, adjusted by application of the cost-of-living adjustment, are not multiples of $50, any increase must be rounded to the next lowest multiple of $50. If the cost-of-living adjustment for any taxable year is 1.000 or less, no adjustment may be made for that taxable year in the dollar bracket amounts of the tax rate tables. The assessor shall incorporate such changes into the income tax forms, instructions and withholding tables for the taxable year.
Sec. 12. Application. This Act applies to tax years beginning on or after January 1, 2007.
summary
This bill requires domestic partners registered with the Department of Health and Human Services to file their income tax returns under the same requirements as for married persons.