Sec. 5. 36 MRSA §4402, as amended by PL 2001, c. 382 , §1, is further amended to read:

§4402. Licenses

Every person engaging in the business of selling tobacco products as a distributor, or as a retailer that brings into this State or causes to be brought into this State tobacco products upon which the tax imposed by this chapter has not been paid, shall obtain a license from the State Tax Assessor before engaging in that business. Every license application must be made on a form prescribed by the assessor and must state the name and address of the applicant, the address of the applicant's principal place of business, and such other information as the assessor may require for the proper administration of this chapter. The application must be accompanied by a fee of $25, except that a fee is not required for distributors or unclassified importers licensed under chapter 703. A person outside the State who ships or transports tobacco products to retailers in this State shall make application as a distributor and be granted by the assessor a license subject to all the provisions of this chapter and agree, upon applying for a license, to submit that person's books, accounts and records to examination by the bureau during reasonable business hours, and to accept service of process by mail when service is made in any proceeding involving enforcement of this chapter.

Each unclassified importer before importing, receiving or acquiring tobacco products from outside the State shall obtain a license from the State Tax Assessor. There is no fee for that license.

A license issued pursuant to this section expires on July 31st June 30th of each year unless sooner revoked by the State Tax Assessor. The license must be prominently displayed on the premises covered by the license and may not be transferred to any other person.

The State Tax Assessor may revoke or suspend the license or licenses of any person for violation of this chapter applicable to the sale of tobacco products. A license may not be revoked,

canceled or suspended until after notice and hearing by the assessor.

Sec. 6. 36 MRSA §5219-R, as amended by PL 1999, c. 708, §48, is further amended to read:

§5219-R. Credit for rehabilitation of historic

properties

A taxpayer is allowed a credit against the tax imposed under this Part equal to the amount of credit claimed by the taxpayer for the taxable year under Section 47 of the Code with respect to expenditures incurred after December 31, 1999 for a certified historic structure located in the State. The credit is nonrefundable and is limited to $100,000 annually per taxpayer. A credit received under this section is subject to the same recapture provisions as apply to a credit received under Section 47 of the Code and to any available federal carry-back or carry- forward provisions.

Sec. 7. Application. That section of this Act that amends the Maine Revised Statutes, Title 36, section 141, subsection 2, paragraph A applies to assessments made on or after the effective date of this Act. That section of this Act that amends Title 36, section 5219-R applies to tax years beginning on or after January 1, 2001.

SUMMARY

This bill accomplishes the following.

1. It amends the grounds for imposing a 6-year statute of limitations for tax assessments in response to the Maine Supreme Court's decision in Stromberg-Carlson v. State Tax Assessor.

2. It amends the sales tax law to make it clear that the tax applies to the rental of digital video discs and similar items as well as to the rental of video tapes.

3. It repeals the statutory provisions requiring cigarette and tobacco product distribution license fees.

3. It amends the income tax credit provided in the Maine Revised Statutes, Title 36, section 5219-R to provide that a credit is not allowed for expenditures incurred prior to January 1, 2000 for tax years beginning on or after January 1, 2001.