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131st MAINE LEGISLATURE
SECOND REGULAR SESSION-2024
Legislative Document No. 2028S.P. 856 In Senate, December 13, 2023
An Act to Amend Certain State Tax Laws
Submitted by the Department of Administrative and Financial Services pursuant to Joint
Rule 203.
Received by the Secretary of the Senate on December 11, 2023. Referred to the Committee
on Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator GROHOSKI of Hancock. Page 1 - 131LR2807(01)
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4 amended to read:
5 owns more than one
6 residential property within the State subject to an existing municipal lien is not eligible to
7 claim a deferral pursuant to this section.
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10 §1 and affected by §7, is repealed and the following enacted in its place:
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12 Tourism Marketing Promotion Fund an amount, as certified by the State Tax Assessor, that
13 is equivalent to 5% of the 8% tax and 5% of the 9% tax imposed on tangible personal
14 property and taxable services pursuant to Title 36, section 1811 for the first 6 months of
15 the immediately prior fiscal year after the reduction for the transfer to the Local
16 Government Fund as described by Title 30‑A, section 5681, subsection 5 and the transfers
17 to the sales tax funds pursuant to Title 36, section 1815. On October 1st of each year, the
18 State Controller shall transfer to the Tourism Marketing Promotion Fund an amount, as
19 certified by the State Tax Assessor, that is equivalent to 5% of the 8% tax and 5% of the
20 9% tax imposed on tangible personal property and taxable services pursuant to Title 36,
21 section 1811 for the last 6 months of the immediately prior fiscal year after the reduction
22 for the transfer to the Local Government Fund and the transfers to the sales tax funds
23 pursuant to Title 36, section 1815. The tax amount must be based on actual sales for that
24 fiscal year and may not consider any accruals that may be required by law. The amount
25 transferred from General Fund sales and use tax revenues does not affect the calculation
26 for the transfer to the Local Government Fund.
27 as amended by PL 2023, c. 360, Pt. C,
28 §1, is further amended to read:
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30 to the Multimodal Transportation Fund an amount, as certified by the State Tax Assessor,
31 that is equivalent to 100% of the revenue from the tax imposed on the value of rental of a
32 truck or van with a gross weight of less than 26,000 pounds rented from a person primarily
33 engaged in the business of renting automobiles and the value of rental for a period of less
34 than one year of an automobile pursuant to Title 36, section 1811 for the first 6 months of
35 the immediately prior fiscal year after the reduction for the transfer to the Local
36 Government Fund as described by Title 30‑A, section 5681, subsection 5, the transfers to
37 the sales tax funds pursuant to Title 36, section 1815 and the transfer to the ATV
38 Recreational Management Fund pursuant to Title 36, section 1820. On October 1st of each
39 year, the State Controller shall transfer to the Multimodal Transportation Fund an amount,
40 as certified by the State Tax Assessor, that is equivalent to 100% of the revenue from the
41 tax imposed on the value of rental of a truck or van with a gross weight of less than 26,000
42 pounds rented from a person primarily engaged in the business of renting automobiles and
43 the value of rental for a period of less than one year of an automobile pursuant to Title 36,
44 section 1811 for the last 6 months of the immediately prior fiscal year after the reduction Page 2 - 131LR2807(01)
45 for the transfer to the Local Government Fund as described by Title 30‑A, section 5681,
46 subsection 5, the transfers to the sales tax funds pursuant to Title 36, section 1815 and the
47 transfer to the ATV Recreational Management Fund pursuant to Title 36, section 1820.
48 The tax amount must be based on actual sales for that fiscal year and may not consider any
49 accruals that may be required by law.
6 as amended by PL 2021, c. 630, Pt. D, §2, is
7 repealed.
8 as enacted by PL 2021, c. 630, Pt. D, §2, is
9 amended to read:
10 Beginning July 1, 2023 and every On July 1st thereafter of each year, the State
11 Controller shall transfer to the ATV Recreational Management Fund established in Title
12 12, section 1893, subsection 2 an amount, as certified by the State Tax Assessor, that is
13 equivalent to 90% of the revenue from the tax imposed under this Part on the rental of all-
14 terrain vehicles, as defined in Title 12, section 13001, subsection 3, for the first 6 months
15 of the immediately prior fiscal year after the reduction for the transfer to the Local
16 Government Fund as described by Title 30‑A, section 5681, subsection 5 and the transfers
17 to the sales tax funds pursuant to section 1815. Beginning on October 1, 2023 and every
18 On October 1st thereafter of each year, the State Controller shall transfer to the ATV
19 Recreational Management Fund an amount, as certified by the State Tax Assessor, that is
20 equivalent to 90% of the revenue from the tax imposed under this Part on the rental of all-
21 terrain vehicles for the last 6 months of the immediately prior fiscal year after the reduction
22 for the transfer to the Local Government Fund as described by Title 30‑A, section 5681,
23 subsection 5 and the transfers to the sales tax funds pursuant to section 1815. The remaining
24 10% of the revenue from the tax imposed under this Part on the rental of all-terrain vehicles
25 is transferred to the Multimodal Transportation Fund pursuant to Title 23, section 4210‑B,
26 subsection 7‑A. The tax amount must be based on actual sales for that fiscal year and may
27 not consider any accruals that may be required by law.
28 as amended by PL 2023, c. 441, Pt. E, §9 and
29 affected by §28, is further amended to read:
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31 derived from tobacco, or that contain nicotine, including, but not limited to, cigars,
32 including premium cigars; cheroots; stogies; electronic smoking devices and liquids used
33 in electronic smoking devices whether or not they contain nicotine; periques, granulated,
34 plug cut, crimp cut, ready rubbed and other smoking tobacco; snuff; snuff flour; snus;
35 cavendish; plug and twist tobacco; finecut and other chewing tobaccos; shorts; refuse
36 scraps, clippings, cuttings and sweepings of tobacco; and other kinds and forms of tobacco,
37 prepared in such manner as to be intended for human consumption or as is likely to be
38 consumed, whether smoked, heated, chewed, absorbed, dissolved, inhaled or ingested by
39 any other means.
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41 is enacted to read:
42 D-1. "Benefit base" has the same meaning as in Title 36, section 6753, subsection 5-B.
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1 as enacted by PL 2009, c. 641, §9,
2 is amended to read:
3 D. State income tax withholding attributable to any qualified employee whose wages
4 are included in computing the benefit base eligible for reimbursement to a Maine
5 Employment Tax Increment Financing Program qualified business pursuant to Title
6 36, chapter 917 or to a qualified pine tree development zone business under Title 30‑A,
7 chapter 206 is not eligible for use in the calculation of a payment to the fund under
8 subsections 4 and subsection 5. State income tax withholding under Title 36, chapter
9 919, or any other tax credit or reimbursement program based on state income tax
10 withholding, is not eligible for use in calculation of a payment to the fund under
11 subsections 4 and subsection 5.
12 as amended by PL 2019, c. 659, Pt. E,
13 §2, is further amended to read:
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15 year, the assessor shall review the information required by subsection 4 and calculate the
16 job tax increment for the preceding calendar year. The assessor shall also calculate the
17 employment tax increment amount of the benefit base in the base area eligible for
18 reimbursement to qualified Maine Employment Tax Increment Financing Program
19 businesses pursuant to Title 36, chapter 917. Between July 1st and July 15th of each year,
20 the assessor shall certify to the State Controller the total remaining job tax increment as a
21 result of the limitation in subsection 3, paragraph D and the remaining benefit base after
22 reimbursements have been made to qualified Maine Employment Tax Increment Financing
23 Program businesses pursuant to Title 36, chapter 917. On or before July 31st of each year,
24 the State Controller shall transfer 50% of the remaining job tax increment and 50% of the
25 remaining benefit base to the state job tax increment contingent account established,
26 maintained and administered by the State Controller from General Fund undedicated
27 revenue within the withholding tax category. On or before July 31st of each year, the State
28 Controller shall deposit this revenue into the fund and distribute the payments pursuant to
29 subsection 3.
30 as amended by PL 2023, c. 441, Pt. C, §1 and
31 affected by §11, is further amended to read:
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33 Every insurance company, association, producer or attorney-in-fact of a reciprocal
34 insurer subject to the tax imposed by this chapter shall make payment of estimated tax in 4
35 equal installments on or before the last day of each April, the 25th day of each June and the
36 last day of each October 15th day of April, June, September and December of the calendar
37 year for which the tax is owed. Each April and June estimated tax payment must equal 35%
38 may not be less than the smaller of 25% of the total tax paid for the immediately preceding
39 calendar year or at least 35% of the total tax to be paid for the current calendar year and
40 each October estimated tax payment must equal 15% of the total tax paid for the preceding
41 calendar year or at least 15% and 22.5% of the total tax to be paid for the current calendar
42 year except that, for which the tax is owed. For the tax on nonadmitted insurance premiums
43 under section 2531, the surplus lines producer or the insured may elect to determine the
44 estimated tax payment for each required estimated tax period payment on the basis of
45 premiums on contracts written during each estimated tax period calendar quarter of the Page 4 - 131LR2807(01)
46 current calendar year for which the tax is owed; the election applies to all estimated tax
47 payments required for that calendar year. A final return must be filed on or before March
48 15th covering the prior immediately preceding calendar year.
4 At the time of filing the returns, each insurance company, association, producer or
5 attorney-in-fact of a reciprocal insurer shall pay to the assessor the amount of tax shown
6 due.
7 An insurance company, association, producer or attorney-in-fact of a reciprocal insurer
8 whose annual tax liability under this chapter does not exceed $1,000 may file an annual
9 return with payment on or before March 15th covering the prior immediately preceding
10 calendar year.
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12 Part A clarifies the circumstances under which a taxpayer who has delinquent taxes on
13 multiple residential properties is disqualified from the homestead property tax deferral
14 program.
15 Part B makes changes to the state sales tax and tobacco products tax law. Part B:
16 1. Removes the Tourism Marketing Promotion Fund, the Multimodal Transportation
17 Fund and the ATV Recreational Management Fund transfers from revenue subject to
18 transfer to the Passamaquoddy Sales Tax Fund, the Penobscot Sales Tax Fund and the
19 Maliseet Sales Tax Fund, thereby preventing more than 100% of the revenue from being
20 transferred out of the General Fund; and
21 2. Clarifies the tobacco products tax definition of "tobacco products" as including any
22 product that contains nicotine.
23 Part C makes changes to the state income tax and insurance premiums tax law. Part C:
24 1. Updates the calculation of payments made to the Brunswick Naval Air Station Job
25 Increment Financing Fund for businesses that are also part of the Maine Employment Tax
26 Increment Financing Program to correspond with recent law changes switching the
27 employment tax increment financing base from withholding to a percentage of incremental
28 gross wages; and
29 2. Generally aligns the insurance premiums tax estimated tax payment due dates and
30 amounts with those of the corporate income tax and makes other nonsubstantive changes
31 to clarify the law.
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