Whereas, the processing of the year 2005 income tax returns would be delayed by waiting for the 90-day period to expire; and

Whereas, legislative action is immediately necessary to ensure continued and efficient administration of the Maine income tax laws and certain other state taxes; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

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

Sec. 1. 36 MRSA §111, sub-§1-A, as amended by PL 2005, c. 12, Pt. P, §1 and affected by §10, is further amended to read:

1-A. Code. "Code" means the United States Internal Revenue Code of 1986 and amendments to that Code as of January 7, 2005 December 31, 2005.

Sec. 2. Application. This Act applies to tax years beginning on or after January 1, 2005 and to any prior years as specifically provided by the United States Internal Revenue Code.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill updates references to the United States Internal Revenue Code contained in the Maine Revised Statutes, Title 36 to the United States Internal Revenue Code as amended through December 31, 2005 for tax years beginning on or after January 1, 2005 and for any prior years as specifically provided by the United States Internal Revenue Code. The bill affects Maine's income tax and estate tax laws.