Sec. 1. 36 MRSA §5206-H is enacted to read:

§5206-H.__Income tax imposed on sales of insurance and securities

The Maine net income of a financial institution, affiliated group or business entity owned by a financial institution or affiliated group is subject to income tax imposed by chapter 803, 805, 807, 815 or 817 and not subject to franchise tax imposed by section 5206 if the Maine net income is derived from engaging in the following activities:

1.__Sales of insurance.__The financial institution, affiliated group or business entity earns commissions or fees on the sale of insurance as an insurance producer or consultant licensed in accordance with Title 24-A, section 1402; or

2.__Sales of securities.__The financial institution, affiliated group or business entity earns commissions or fees as a broker-dealer or a sales representative on securities as defined in Title 32, section 10501.

SUMMARY

This bill subjects Maine net income derived from sales of insurance and securities to state income tax regardless of whether or not the insurance agency or securities broker-dealer is owned by a financial institution or affiliated group subject to the franchise tax.