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An Act To Amend the Tax Laws
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §187-B, sub-§1, ¶A, as amended by PL 1999, c. 521, Pt. A, §2, is further amended to read:
 
A. If the return is filed before or within 3060 days after the taxpayer receives from the assessor a formal demand that the return be filed, or if the return is not filed but the tax due is assessed by the assessor before the taxpayer receives from the assessor a formal demand that the return be filed, the penalty is $25 or 10% of the tax due, whichever is greater.
Sec. 2. 36 MRSA §187-B, sub-§1, ¶B, as amended by PL 2011, c. 380, Pt. K, §1 and affected by §2, is further amended to read:
 
B. If the return is not filed within 3060 days after the taxpayer receives from the assessor a formal demand that the return be filed, the penalty is $25 or 25% of the tax due, whichever is greater. The period provided by this paragraph must be extended for up to 12090 days if the taxpayer requests an extension in writing prior to the expiration of the original 30-day60-day period.
Sec. 3. 36 MRSA §187-B, sub-§1-A, as enacted by PL 2007, c. 437, §3 and affected by §22, is amended to read:
 
1-A. Failure to file information return.   AnyA partnership or S corporation that fails to make and file an information return required by section 5241 and that has received from the assessor a formal demand that the return be filed is liable for one of the following penalties:
 
A. If the return is filed within 3060 days after the partnership or S corporation receives from the assessor a formal demand that the return be filed, the penalty is $100. The 30-day period provided by this paragraph ismust be extended for up to 12090 days if the partnership or S corporation requests an extension in writing prior to the expiration of the 30-day60-day period; or
 
B. Except as provided in paragraph A, if the return is not filed within 3060 days after the partnership or S corporation receives from the assessor a formal demand that the return be filed, the penalty is $500.
Sec. 4. 36 MRSA §1752, sub-§1-B, as amended by PL 2011, c. 296, §1, is further amended to read:
 
1-B. Automobile.   "Automobile" means a self-propelled 4-wheel motor vehicle designed primarily to carry passengers and not designed to run on tracks. "Automobile" includes a pickup truck or van with a registered gross vehicle weight rating of 10,000 pounds or less.
Sec. 5. 36 MRSA §1754-A, as amended by PL 2003, c. 390, §9, is further amended to read:
§ 1754-A.Registration of owners of space temporarily rented as retail space
A person who rents or leases space to more than 4 persons at one location for less than a 12-month period for the purpose of making retail sales shall register with the State Tax Assessor. The form for application for registration and the registration certificates must be prescribed and furnished free of charge by the assessor. For each location where more than 4 persons rent or lease space for less than 12 months from the same person, the assessor shall issue a registration certificate, which must be conspicuously displayed at that location. By the 15th of each month following any month in which rental or lease activity has occurred, the person shall provide to the assessor the names, addresses and sales tax registration certificate numbers of those persons who have rented space during the previous month. Information returns must be prescribed and furnished free of charge by the assessor. Returns required under this section must be treated as returns filed under this Title and are subject to section 187-B.A registration certificate issued pursuant to this section is nontransferable and is not a license within the meaning of that term in the Maine Administrative Procedure Act.
A person required to register with the assessor under this section may not rent or lease space to a person for the purpose of making retail sales without verifying that the person is the holder of a valid registration certificate issued by the assessor under section 1754-B. Each person required to register with the assessor under this section shall maintain a list subject to the requirements of section 135, subsection 1 that includes the names, addresses and sales tax registration certificate numbers of those persons who have rented or leased space at that location for the purpose of making retail sales and the dates on which those rentals or leases occurred.
Sec. 6. 36 MRSA §5122, sub-§2, ¶HH, as corrected by RR 2011, c. 1, §54, is amended to read:
 
HH. To the extent included in federal adjusted gross income, annuity payments made to the survivor of a deceased member of the military as the result of service in active or reserve components of the United States Army, Navy, Air Force, Marines or Coast Guard under a survivor benefit plan or reserve component survivor benefit plan pursuant to 10 United States Code, Chapter 73 reduced by any amount claimed as a modification under paragraph M;
Sec. 7. 36 MRSA §5122, sub-§2, ¶II, as corrected by RR 2011, c. 1, §56, is amended to read:
 
II. For taxable years beginning on or after January 1, 2012, an amount equal to the net increase in the depreciation deduction allowable under the Code, Sections 167 and 168 that would have been applicable to that property had the depreciation deduction under the Code, Section 168(k) not been claimed with respect to such property placed in service during the taxable year beginning in 2011 or 2012 for which an addition was required under subsection 1, paragraph FF, subparagraph (2) for the taxable year beginning in 2011 or 2012.
 
Upon the taxable disposition of property to which this paragraph applies, the amount of any gain or loss includable in federal adjusted gross income must be adjusted for Maine income tax purposes by an amount equal to the difference between the addition modification for such property under subsection 1, paragraph FF, subparagraph (2) related to property placed in service outside the State and the subtraction modifications allowed pursuant to this paragraph.
 
The total amount of subtraction claimed for property placed in service outside the State under this paragraph for all tax years may not exceed the addition modification under subsection 1, paragraph FF, subparagraph (2) for the same property; and
Sec. 8. 36 MRSA §5122, sub-§2, ¶JJ, as reallocated by RR 2011, c. 1, §55, is amended to read:
 
JJ. To the extent included in federal adjusted gross income, an amount equal to the distribution from a private venture capital fund of the refundable portion of the credit allowed under section 5216-B.; and
Sec. 9.  36 MRSA §5122, sub-§2, ¶KK  is enacted to read:
 
KK.  To the extent included in federal adjusted gross income, an amount equal to the refundable portion of the new markets capital investment credit.
Sec. 10. 36 MRSA §5200-A, sub-§2, ¶U, as amended by PL 2011, c. 380, Pt. O, §15 and c. 454, §12, is further amended to read:
 
U. An amount equal to the gross income from discharge of indebtedness previously deferred under the Code, Section 108(i) and included in federal taxable income. The total subtraction for all years under this paragraph may not exceed the amount of the addition modification under subsection 1, paragraph W for the same indebtedness; and
Sec. 11. 36 MRSA §5200-A, sub-§2, ¶V, as corrected by RR 2011, c. 1, §57, is amended to read:
 
V. For taxable years beginning on or after January 1, 2012, an amount equal to the net increase in the depreciation deduction allowable under the Code, Sections 167 and 168 that would have been applicable to that property had the depreciation deduction under the Code, Section 168(k) not been claimed with respect to such property placed in service during the taxable year beginning in 2011 or 2012 for which an addition was required under subsection 1, paragraph Y, subparagraph (2) for the taxable year beginning in 2011 or 2012.
 
Upon the taxable disposition of property to which this paragraph applies, the amount of any gain or loss includable in federal adjusted gross income must be adjusted for Maine income tax purposes by an amount equal to the difference between the addition modification for such property under subsection 1, paragraph Y, subparagraph (2) related to property placed in service outside the State and the subtraction modifications allowed pursuant to this paragraph.
 
The total amount of subtraction claimed for property placed in service outside the State under this paragraph for all tax years may not exceed the addition modification under subsection 1, paragraph Y, subparagraph (2) for the same property; and
Sec. 12. 36 MRSA §5200-A, sub-§2, ¶W, as reallocated by RR 2011, c. 1, §58, is amended to read:
 
W. To the extent included in federal taxable income, an amount equal to the refundable portion of the credit allowed under section 5216-B and an amount equal to the distribution from a private venture capital fund of the refundable portion of the credit allowed under section 5216-B.; and
Sec. 13.  36 MRSA §5200-A, sub-§2, ¶X  is enacted to read:
 
X.  To the extent included in federal taxable income, an amount equal to the refundable portion of the new markets capital investment credit.
Sec. 14. 36 MRSA §5203-C, sub-§4, ¶A, as amended by PL 2005, c. 618, §8 and affected by §22, is further amended to read:
 
A. A minimum tax credit is allowed against the liability arising under this Part for any taxable year other than withholding tax liability. The minimum tax credit equals the excess, if any, of the adjusted alternative minimum tax, reduced by the credit for tax paid to other jurisdictions determined under subsection 3 and, the seed capital investment tax credit provided by section 5216-B, the Pine Tree Development Zone tax credit provided by section 5219-W, the credit for rehabilitation of historic properties after 2007 provided by section 5219-BB and the new markets capital investment credit that was imposed for all prior taxable years beginning after 2003 over the amount allowable as a credit under this subsection for suchthose prior taxable years, plus unused minimum tax credits from years beginning after 1990.
Sec. 15. 36 MRSA §5219-H, sub-§1, as amended by PL 2011, c. 240, §36, is further amended to read:
 
1. Meaning of tax.   Whenever a credit provision in this chapter, other than section 5216-B, section 5219-W, section 5219-BB and the new markets capital investment credit, allows for a credit "against the tax otherwise due under this Part," "against the tax imposed by this Part" or similar language, "tax" means all taxes imposed under this Part, except the minimum tax imposed by section 5203-C and the taxes imposed by chapter 827.
Sec. 16. Application. Those sections of this Act that amend the Maine Revised Statutes, Title 36, section 5122, subsection 2, paragraph HH, Title 36, section 5203-C, subsection 4, paragraph A and Title 36, section 5219-H, subsection 1 and that enact Title 36, section 5122, subsection 2, paragraph KK and Title 36, section 5200-A, subsection 2, paragraph X apply to tax years beginning on or after January 1, 2012.
Sec. 17. Retroactivity. Those sections of this Act that amend the Maine Revised Statutes, Title 36, section 187-B, subsections 1 and 1-A apply retroactively to July 1, 2011. That section of this Act that amends Title 36, section 1752, subsection 1-B applies retroactively to September 28, 2011.
Sec. 18. Effective date. That section of this Act that amends the Maine Revised Statutes, Title 36, section 1754-A takes effect August 1, 2012.
 
SUMMARY
This bill makes the following changes to the laws governing taxation.
It extends from 30 days to 60 days the period during which a person who has received a demand to file a delinquent tax return must either file the return or request an extension in order to avoid an enhanced penalty.
It provides that the weight limitation for a pickup truck or van included in the definition of "automobile" in the sales and use tax law applies to the gross vehicle weight rating of the vehicle.
It removes the requirement that persons who rent or lease temporary retail space must file monthly returns reporting those rentals and replaces it with a tax registration certificate and record-keeping requirement. Additionally, the characteristics of the registration certificates are clarified.
It provides that an amount claimed as an income modification for military survivor benefits may not include an amount representing employee retirement benefits for which an income modification is claimed.
It provides that any income recognized on a taxpayer's federal tax return from the new markets capital investment credit is subtracted from federal adjusted gross income for state income tax purposes.
It provides that certain refundable tax credits are included for purposes of calculating the taxpayer's alternative minimum tax credit.
It provides that certain refundable tax credits may be applied to reduce the taxpayer's alternative minimum tax liability.