Sec. 1. 36 MRSA §5142, sub-§1, ¶¶B and C, as amended by PL 2003, c. 391, §6, are further amended to read:

B. The portion of the modifications described in section 5122, subsections 1 and 2 that relates to income derived from or connected with sources in this State, including any modifications attributable to the nonresident individual as a partner of a partnership, shareholder of an S corporation, member of a limited liability company or beneficiary of an estate or trust; and

C. Proceeds from any Maine State Lottery or Tri-state Lotto tickets purchased in this State, including payments received from a 3rd party for the transfer of the rights to future proceeds related to any such tickets.; and

Sec. 2. 36 MRSA §5142, sub-§1, ¶D is enacted to read:

D.__Winnings from a wager, wagering transaction or gaming or gambling activity performed in this State, including, but not limited to, wagering, gaming and gambling in connection with activities licensed under Title 8, chapters 11 and 31, if the proceeds from the wagering, gaming or gambling are required by the Code or regulations adopted under the Code to be reported by a nonresident individual as income.

SUMMARY

This bill imposes a tax on gambling winnings from activities such as from horse racing and playing slot machines in the State by persons who are not residents of the State if those winnings are required to be reported as federal income.