CHAPTER 391

H.P. 1075 - L.D. 1470

An Act To Make Minor Substantive Changes to the Tax Laws

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §1861-A, as amended by PL 2001, c. 583, §12, is further amended to read:

§1861-A. Reporting use tax on individual income

tax returns

The assessor shall provide that individuals report use tax on items with a purchase price of $5,000 or less 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. 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 sale price of $1,000 or less and may be applied only against a liability determined on review with regard to items with a sale price of $1,000 or less. Use tax on any item with a purchase price of