An Act To Improve the Tax Appeal Process for Maine Businesses and Consumers

Sec. 1. 36 MRSA §151, sub-§2, ¶H  is enacted to read:

Sec. 2. 36 MRSA §2011-A  is enacted to read:

§ 2011-A.  Refund to purchaser

Notwithstanding the other provisions of this Part, a purchaser from whom sales tax is collected erroneously or illegally under this Part who has not been reimbursed by the retailer may submit a written application for a refund from the State Tax Assessor in the same manner as is provided for a taxpayer under section 2011. A purchaser making an application for a refund under this section must submit an affidavit as prescribed by the assessor stating that the refund or credit has not previously been requested or received from a retailer. If the State Tax Assessor determines pursuant to an application from a purchaser under this section that a tax has been erroneously or illegally collected or computed, the assessor shall certify to the State Controller the amount paid in excess of that legally due and refund that amount to the purchaser. A refund is not allowed under this section unless the application for a refund is made or the overpayment is discovered on audit within 3 years of the date of overpayment.

A purchaser making an application for a refund under this section is entitled to the same rights of reconsideration and appeal as a taxpayer under section 2011.

Sec. 3. 36 MRSA §2555-A  is enacted to read:

§ 2555-A.  Refund to purchaser

Notwithstanding the other provisions of this chapter, a purchaser from whom service provider tax is collected erroneously or illegally under this chapter who has not been reimbursed by the service provider may submit a written application for a refund from the State Tax Assessor in the same manner as is provided for a taxpayer under section 2555. A purchaser making an application for a refund under this section must submit an affidavit as prescribed by the assessor stating that the refund or credit has not previously been requested or received from a retailer. If the State Tax Assessor determines pursuant to an application from a purchaser under this section that a tax has been erroneously or illegally collected or computed, the assessor shall certify to the State Controller the amount paid in excess of that legally due and refund that amount to the purchaser. A refund is not allowed under this section unless the application for a refund is made or the overpayment is discovered on audit within 3 years of the date of overpayment.

A purchaser making an application for a refund under this section is entitled to the same rights of reconsideration and appeal as a taxpayer under section 2555.

summary

This bill expands the tax appeals process for taxpayers by permitting purchasers from whom sales tax or service provider tax has been collected to request a refund from the State Tax Assessor when taxes have been collected erroneously or illegally and the retailer or service provider has not refunded the tax. The bill also permits a person appealing a reconsideration determination to request the legal basis of the determination.