An Act Making Technical Changes to the Maine Tax Laws
PART A
Sec. A-1. 30-A MRSA §5227, sub-§3, ¶D, as amended by PL 2011, c. 101, §20, is further amended to read:
Sec. A-2. 30-A MRSA §5250-A, sub-§3, ¶D, as enacted by PL 2003, c. 426, §1, is amended to read:
Sec. A-3. 33 MRSA §203, first ¶, as amended by PL 1999, c. 699, Pt. D, §20 and affected by §30, is further amended to read:
Deeds and all other written instruments before recording in the registries of deeds, except those issued by a court of competent jurisdiction and duly attested by the proper officer thereof, and excepting plans and notices of foreclosure of mortgages and certain financing statements as provided in Title 11, section 9-1501, subsection (1), paragraph (a), and excepting notices of liens for internal revenue taxes and certificates discharging such liens and excepting notices of liens for taxes assessed pursuant to Title 36, Part 1 and Parts 3 to 8 and Title 26, chapter 13, and releases discharging such liens, and excepting notices of liens for taxes assessed pursuant to Title 36, Part 2 when filed by the State Tax Assessor, and releases discharging such liens, must be acknowledged by the grantors, or by the persons executing any such written instruments, or by one of them, or by their attorney executing the same, or by the lessor in a lease or one of the lessors or lessor's attorney executing the same, before a notary public in the State, or before an attorney-at-law duly admitted and eligible to practice in the courts of the State, if within the State; or before any clerk of a court of record having a seal, notary public or commissioner appointed by the Governor of this State for the purpose, or a commissioner authorized in the State state where the acknowledgment is taken, within the United States; or before a minister, vice-consul or consul of the United States or notary public in any foreign country.
Sec. A-4. 36 MRSA §208, as amended by PL 2019, c. 379, Pt. A, §1 and c. 401, Pt. A, §2, is repealed and the following enacted in its place:
§ 208. Equalization
The State Tax Assessor has the duty of equalizing the state and county taxes among all municipalities and the unorganized territory. The State Tax Assessor shall equalize and adjust the assessment list of each municipality by adding to or deducting from it such amount as will make it equal to its just value as of April 1st. Notice of the proposed valuations of municipalities within each county must be sent annually to the municipal officers of each municipality within that county on or before the first day of October. The valuation so determined is subject to review by the State Board of Property Tax Review pursuant to subchapter 2-A, but the valuation finally certified to the Secretary of State pursuant to section 381 must be used for all computations required by law to be based upon the state valuation with respect to municipalities.
Sec. A-5. 36 MRSA §655, sub-§1, ¶B, as amended by PL 2005, c. 652, §1 and affected by §3, is further amended to read:
Sec. A-6. 36 MRSA §686, as enacted by PL 1997, c. 643, Pt. HHH, §3 and affected by §10, is amended to read:
§ 686. Denial of homestead exemption; appeals
If the assessor determines that a property is not entitled to a homestead exemption under this subchapter, the assessor shall promptly provide a notice of denial, including the reasons for the denial, to the applicant by either personal delivery or regular mail. An applicant may appeal a denial of an exemption under this subchapter using the procedures provided in subchapter VIII 8. If the assessor determines that a property receiving an exemption under this subchapter any year within the 10 preceding years was not eligible for the exemption, the assessor shall immediately notify the bureau in writing.
Sec. A-7. 36 MRSA §4641-B, sub-§2, as enacted by PL 2001, c. 559, Pt. I, §4 and affected by §15, is amended to read:
Sec. A-8. 36 MRSA §4641-B, sub-§7, as enacted by PL 2013, c. 521, Pt. A, §2, is amended to read:
Sec. A-9. 36 MRSA §4641-D, first ¶, as amended by PL 2007, c. 437, §14, is further amended to read:
Except as otherwise provided in this section, any deed, when offered for recording, and any report of a transfer of a controlling interest must be accompanied by a declaration , signed by the parties to the transaction or their authorized representatives, declaring of the value of the property transferred and indicating the taxpayer identification numbers of the grantor and grantee , if they are business entities. The declaration of value with regard to a transfer by deed must include evidence of compliance with section 5250-A. The declaration of value must identify the tax map and parcel number of the property transferred unless a tax map does not exist that includes that property, in which event the declaration must indicate that an appropriate tax map does not exist. The following are exempt from these requirements:
Sec. A-10. 36 MRSA §6232, sub-§1-A, as amended by PL 2019, c. 36, §1, is further amended to read:
PART B
Sec. B-1. 36 MRSA §1752, sub-§11, ¶B, as amended by PL 2019, c. 401, Pt. B, §4, is further amended by amending subparagraph (15) to read:
(1) Any casual sale;
(2) Any sale by a personal representative in the settlement of an estate unless the sale is made through a retailer or the sale is made in the continuation or operation of a business;
(3) The sale, to a person engaged in the business of renting automobiles, of automobiles, integral parts of automobiles or accessories to automobiles, for rental or for use in an automobile rented for a period of less than one year. For the purposes of this subparagraph, "automobile" includes a pickup truck or van with a gross vehicle weight of less than 26,000 pounds;
(4) The sale, to a person engaged in the business of renting video media and video equipment, of video media or video equipment for rental;
(5) The sale, to a person engaged in the business of renting or leasing automobiles, of automobiles for rental or lease for one year or more;
(6) The sale, to a person engaged in the business of providing cable or satellite television services or satellite radio services, of associated equipment for rental or lease to subscribers in conjunction with a sale of cable or satellite television services or satellite radio services;
(7) The sale, to a person engaged in the business of renting furniture or audio media and audio equipment, of furniture, audio media or audio equipment for rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 11-105;
(8) The sale of loaner vehicles to a new vehicle dealer licensed as such pursuant to Title 29-A, section 953;
(9) The sale of automobile repair parts used in the performance of repair services on an automobile pursuant to an extended service contract sold on or after September 20, 2007 that entitles the purchaser to specific benefits in the service of the automobile for a specific duration;
(10) The sale, to a retailer that has been issued a resale certificate pursuant to section 1754-B, subsection 2-B or 2-C, of tangible personal property for resale in the form of tangible personal property, except resale as a casual sale;
(11) The sale, to a retailer that has been issued a resale certificate pursuant to section 1754-B, subsection 2-B or 2-C, of a taxable service for resale, except resale as a casual sale;
(12) The sale, to a retailer that is not required to register under section 1754-B, of tangible personal property for resale outside the State in the form of tangible personal property, except resale as a casual sale;
(13) The sale, to a retailer that is not required to register under section 1754-B, of a taxable service for resale outside the State, except resale as a casual sale;
(14) The sale of repair parts used in the performance of repair services on telecommunications equipment as defined in section 2551, subsection 19 pursuant to an extended service contract that entitles the purchaser to specific benefits in the service of the telecommunications equipment for a specific duration;
(15) The sale of positive airway pressure equipment and supplies and oxygen delivery equipment for rental for personal use to a person engaged in the business of renting positive airway pressure equipment and oxygen delivery equipment;
(16) The sale, to a person engaged in the business of renting or leasing motor homes, as defined in Title 29-A, section 101, subsection 40, or camper trailers, of motor homes or camper trailers for rental as tangible personal property but not as the rental of living quarters; or
(17) The sale of truck repair parts used in the performance of repair services on a truck pursuant to an extended service contract that entitles the purchaser to specific benefits in the service of the truck for a specific duration.
Sec. B-2. 36 MRSA §2873, sub-§1, as amended by PL 2003, c. 467, §6, is further amended to read:
Sec. B-3. 36 MRSA §4401, sub-§9, ¶C, as enacted by PL 2019, c. 530, Pt. A, §2 and affected by §7, is amended to read:
Sec. B-4. Retroactive application. That section of this Part that amends the Maine Revised Statutes, Title 36, section 1752, subsection 11, paragraph B applies retroactively to sales occurring on or after January 1, 2012.
PART C
Sec. C-1. 36 MRSA §191, sub-§2, ¶HHH, as enacted by PL 2019, c. 386, §1, is amended to read:
Sec. C-2. 36 MRSA §1861-A, as amended by PL 2019, c. 441, §6, is further amended to read:
§ 1861-A. Reporting use tax on individual income tax returns
The assessor shall provide that individuals report use tax on items with a sale price of $5,000 or less on their Maine individual income tax returns. Taxpayers are required to attest to the amount of their use tax liability for the period of the tax return. Alternatively, they may elect to report an estimated use tax liability amount that is .04% of their Maine adjusted gross income. A taxpayer electing to satisfy a use tax liability by estimating it shall calculate the liability in accordance with the use tax table. The estimated liability is applicable only to purchases of any individual items each having a sale price no greater than $1,000. For each taxable item with a sale price greater than $1,000 but no more than $5,000, the actual use tax liability for each purchase must be added to the amount of the estimated liability derived from the use tax table use tax equal to .04% of a taxpayer's Maine adjusted gross income. Upon subsequent review, if use tax liability for the period of the return exceeds the amount of use tax paid with the return, a credit of that amount paid relative to the item or items being supplementarily assessed is allowed. Use tax on any item with a sale price of more than $5,000 must be reported in accordance with section 1951-A.
Sec. C-3. 36 MRSA §5147, as enacted by PL 2019, c. 401, Pt. C, §7, is amended to read:
§ 5147. Installment sale election
Notwithstanding any provision of this Part to the contrary, an individual who transferred, during the taxable year, real or tangible property located in this State under an installment sale agreement may elect to recognize, for purposes of determining the taxable income under this chapter, the total gain or loss from that sale in the taxable year of the transfer, or to recognize any remaining gain or loss in a subsequent tax year to the extent of the gain or loss not reported in a prior tax year. An election under this section is not available to an individual unless that individual is a nonresident of this State at the time of the transfer or at the time the election is made. An election under this section must be made on a timely filed original income tax return, including if filed by any extension granted for filing the return, and, once made, is irrevocable.
Sec. C-4. 36 MRSA §5206, last ¶, as enacted by PL 2005, c. 608, §1 and affected by §5, is amended to read:
In each taxable year in which a financial institution sustains a book net operating loss, a credit must be allowed against the franchise tax on assets under subsection 1. The credit must be computed by multiplying the book net operating loss Maine net income by the applicable franchise tax rate imposed by subsection 1, paragraph A. The total amount of any credit allowed may not exceed the franchise tax on assets due under subsection 1, paragraph B. In any tax year in which there is excess credit, the excess credit must be carried forward for no more than the next 5 tax years and may be applied against the tax computed under subsection 1.
Sec. C-5. 36 MRSA §5219-RR, sub-§9, ¶A, as enacted by PL 2017, c. 361, §2, is amended to read:
(1) The employment of the certified applicant for the report year, including specific information on:
(a) The number of qualified employees that are employed by the certified applicant at the end of the report year;
(b) The total number of qualified employees hired during the report year; and
(c) The number of qualified employees in positions that are covered by a collective bargaining agreement;
(2) The total dollar amount of payroll associated with employment in the report year, including specific information on:
(a) The average annual salary and wages for qualified employees; and
(b) The median annual salary and wages for qualified employees;
(3) The total dollar amount that was spent on goods and services obtained from businesses with an office in the State from which business operations in the State are managed; and
(4) The incremental level of qualified investments made during the report year, including specific information on:
(a) The amount of qualified investment in facility, production equipment and employee training and development, reported as an aggregate sum;
(b) The portion of the qualified investment reported under subparagraph (a) that was spent on goods and services from businesses with an office in the State from which business operations in the State are managed; and
(c) Whether the certified applicant has qualified for the additional credit under subsection 3, paragraph B.
The commissioner may prescribe forms for the annual reports required under this paragraph. The commissioner shall provide copies of the report to the State Tax Assessor and to the joint standing committee of the Legislature having jurisdiction over taxation matters at the time the report is received.
Sec. C-6. 36 MRSA §5219-RR, sub-§9, ¶C, as enacted by PL 2017, c. 361, §2, is amended to read:
Sec. C-7. 36 MRSA §5219-VV, sub-§5, as enacted by PL 2019, c. 386, §2, is amended to read:
(1) The number of full-time employees based in the State of the certified applicant on the last day of the tax year ending during the calendar year immediately preceding the report year; and
(2) The incremental amount of qualified investment made in the report year.
The commissioner may prescribe forms for the annual report described in this paragraph. The commissioner shall provide copies of the report to the assessor, to the Office of Program Evaluation and Government Accountability and to the joint standing committee of the Legislature having jurisdiction over taxation matters at the time the report is received.
Notwithstanding any provision of law to the contrary, the reports provided under this subsection are public records as defined in Title 1, section 402, subsection 3.
Sec. C-8. 36 MRSA §5234, as enacted by PL 1975, c. 660, §9, is repealed.
Sec. C-9. Application; retroactivity. That section of this Part that amends the Maine Revised Statutes, Title 36, section 1861-A applies to individual income tax years beginning on or after January 1, 2020. That section of this Part that amends Title 36, section 5147 applies retroactively to tax years beginning on or after January 1, 2019.
PART D
Sec. D-1. 36 MRSA §177, sub-§2, as amended by PL 1999, c. 414, §8, is further amended to read:
Sec. D-2. 36 MRSA §194-D, sub-§1, ¶A, as enacted by PL 2019, c. 343, Pt. G, §13, is amended by amending subparagraph (2) to read:
(1) An applicant for employment with the bureau;
(2) A contractor for the bureau, including the contractor's employees, subcontractors and subcontractors' employees, who provides or is assigned to provide services to the bureau under an identified contract . For the purposes of this subparagraph, "identified contract" means a contract that the assessor determines involves access or the substantial possibility of access to the bureau's information technology systems or to confidential tax information;
(3) A current employee of the bureau; or
(4) An employee or contractor, including the contractor's respective employees, subcontractors and subcontractors' employees, of another state agency, if the assessor determines the employee's or contractor's duties involve access or the substantial possibility of access to federal tax information obtained from the bureau.
Sec. D-3. 36 MRSA §194-D, sub-§1, ¶D is enacted to read:
Sec. D-4. 36 MRSA §194-D, sub-§2, ¶A, as enacted by PL 2019, c. 343, Pt. G, §13, is amended to read:
Sec. D-5. 36 MRSA §4119, as enacted by PL 2017, c. 474, Pt. G, §2, is amended to read:
§ 4119. Annual adjustments for inflation
Beginning in 2018 and each year thereafter, on or about September 15th, for the estates of decedents who die during the succeeding calendar year, the assessor shall multiply the cost-of-living adjustment by the dollar amount contained in section 4102, subsection 5 applicable to estates of decedents dying on or after January 1, 2018. For the purposes of this section, the "cost-of-living adjustment" is the Chained Consumer Price Index for the 12-month period ending June 30th of the preceding calendar year divided by the Chained Consumer Price Index for the 12-month period ending June 30, 2017. If the dollar amount, adjusted by the application of the cost-of-living adjustment, is not a multiple of $10,000, any increase must be rounded to the nearest multiple of $10,000.
summary
Part A makes the following changes to the property tax laws.
1. It clarifies the time period when excess tax increment revenues can be transferred by a municipality to the municipality's general fund.
2. It removes the requirement that a notice of a tax lien pursuant to the Maine Revised Statutes, Title 36, Part 2 contain the signature of a notary public, when filed by the State Tax Assessor.
3. It resolves a conflict created when 2 public laws amended the same section of law in different ways and updates the notice of proposed state valuation provision by requiring the notice to be made to the municipal officers of the municipality instead of the chair of the board of assessors or the chair of the board of selectmen.
4. It changes the term "manufactured home" to "manufactured housing" to match the defined term in Title 10.
5. It conforms a cross-reference to legislative drafting manual standards.
6. It removes the signature requirements under the real estate transfer tax laws with respect to assignation of rights in relation to foreclosed real property.
7. It clarifies that the municipal property tax assistance program benefits cap is an annual cap.
Part B makes the following changes to the sales tax laws.
1. It clarifies in the exclusion to the definition of "retail sale" for sales and use tax purposes that the sale of positive airway pressure equipment for rental for personal use to a person engaged in the business of renting positive airway pressure equipment also includes oxygen delivery equipment. The clarification applies retroactively to sales occurring on or after January 1, 2012.
2. It removes the requirement under the health care provider tax provision that a return be submitted with the monthly estimated payment.
3. It corrects a cross-reference to the marijuana excise tax.
Part C makes the following changes to the income tax laws.
1. It clarifies that information regarding the tax credit for major food processing and manufacturing facility expansion provided to the Office of Program Evaluation and Government Accountability is exempt from the confidentiality statute and corrects cross-references related to the disclosure of that information.
2. It removes the requirement that a tax table be used to calculate use tax reportable on individual income tax returns. The change applies to individual income tax years beginning on or after January 1, 2020.
3. It strikes references to losses in the Maine income tax law regarding the installment sale of Maine real or tangible property. Because a taxpayer must already report the entire loss in the year of the sale for both federal and Maine income tax purposes, what is purported to be an option to accelerate the claim of the loss under Maine income tax law has no purpose or practical effect. Removing the references to such losses clarifies the law and is intended to mitigate taxpayer confusion.
4. It clarifies that the net operating loss credit under the financial institutions franchise tax is computed by multiplying Maine net income by the applicable franchise tax rate.
5. It delays the State Tax Assessor's yearly reporting requirement for the tax credit for Maine shipbuilding facility investment until December 31st, clarifies that the report is for the tax year ending during the immediately preceding calendar year and defines the term "revenue loss" for the purposes of the State Tax Assessor's annual reporting requirement. These changes effect consistency with the reporting requirements for the credit for major business headquarters expansion, as amended by Public Law 2017, chapter 375, and the credit for major food processing and manufacturing facility expansion.
6. It delays the State Tax Assessor's yearly reporting requirement for the tax credit for major food processing and manufacturing facility expansion until December 31st of each year, clarifies that the report is for the tax year ending during the immediately preceding calendar year and defines the term "revenue loss" for the purposes of the State Tax Assessor's annual reporting requirement. These changes effect consistency with the reporting requirements for the credit for major business headquarters expansion, as amended by Public Law 2017, chapter 375, and the credit for Maine shipbuilding facility investment.
7. It repeals the provision of law that requires the calculation of income tax using blended tax rates for fiscal year filers when there is a change in tax rate that does not refer to the first day of the taxable year.
Part D makes the following changes to the tax laws.
1. It clarifies that one or more responsible individuals may be designated to collect trust fund taxes under the Maine Revised Statutes, Title 36, section 177.
2. It clarifies that the definition of "identified contract" applies to all of Title 36, section 194-D concerning Maine Revenue Services background investigations.
3. It clarifies that an additional background investigation is not required when a person who is currently employed by Maine Revenue Services applies for another position within Maine Revenue Services.
4. It codifies the practice of rounding the Maine estate tax exclusion amount cost-of-living adjustment to the nearest multiple of $10,000.