Sec. A-5. 36 MRSA §5111-C is enacted to read:

§5111-C.__Imposition and rate of tax

1.__Resident.__A tax is imposed for each taxable year beginning on or after January 1, 2006 on the Maine taxable income of every resident individual of this State.__The amount of the tax is 6%.

2.__Nonresident.__A tax is imposed for each taxable year on the Maine adjusted gross income of every nonresident individual. The amount of the tax equals the tax computed under this section and chapter 805, as if the nonresident were a resident, multiplied by the ratio of the individual's Maine adjusted gross income, as defined in section 5102, subsection 1-C, paragraph B, to the nonresident's entire federal adjusted gross income as modified by section 5122.

Sec. A-6. 36 MRSA §5160, as amended by PL 2003, c. 390, §35, is further amended to read:

§5160. Imposition of tax

The tax is imposed, at the rates rate provided by section 5111 5111-C for single resident individuals, upon the Maine taxable income of estates and trusts. The tax must be paid by the fiduciary.

Sec. A-7. 36 MRSA c. 818, as amended, is repealed.

Sec. A-8. 36 MRSA §5217-A, as amended by PL 2003, c. 673, Pt. JJ, §4 and affected by §6, is further amended to read:

§5217-A. Income tax paid to other taxing jurisdiction

A resident individual is allowed a credit against the tax otherwise due under this Part, excluding the tax imposed by section 5203-C, for the amount of income tax imposed on that individual for the taxable year by another state of the United States, a political subdivision of any such state, the District of Columbia or any political subdivision of a foreign country that is analogous to a state of the United States with respect to income subject to tax under this Part that is derived from sources in that taxing jurisdiction. In determining whether income is derived from sources in another jurisdiction, the assessor may not employ the law of the other jurisdiction but shall instead assume that a statute equivalent to section 5142