CHAPTER 608

S.P. 678 - L.D. 1761

An Act To Offer Financial Institutions an Option for

Payment of the Maine Franchise Tax

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

Sec. 1. 36 MRSA §5206, as amended by PL 1997, c. 746, §14 and affected by §24, is repealed and the following enacted in its place:

§5206.__Franchise tax on financial institutions

A tax is imposed for each calendar year or fiscal year ending during that calendar year upon the franchise or privilege of doing business in this State of every financial institution that has Maine net income or Maine assets and that has a substantial physical presence in this State sufficient to satisfy the requirements of the due process and commerce clauses of the United States Constitution.__A financial institution is subject to tax under this section even if it is treated as a partnership, S corporation or entity disregarded as separate from its owner for federal income tax purposes under the Code.__Each financial institution shall determine the tax due using one of the following methods:

1.__Franchise tax on Maine net income and Maine assets.__The sum of: