§113. Audit and collection expenses

1.__Contract audit and collection programs.__The State Controller may transfer from the General Fund and the Highway Fund amounts authorized by the State Tax Assessor equal to the expenses of those contract audit and collection programs for which the fees are contingent on the amount collected.__These amounts transferred must be deposited into a dedicated, nonlapsing account to be used solely for the purpose of paying these expenses.__Interest earned on balances in the account accrue to the account.__The assessor shall notify the State Controller of the amounts to be transferred pursuant to this section.__The assessor shall annually report to the joint standing committees of the Legislature having jurisdiction over taxation matters and appropriations and financial affairs the amounts collected and the costs incurred of programs administered pursuant to this section.

2.__Credit card fees.__The State Tax Assessor may subtract from revenues received credit card fees incurred by the assessor in connection with the following:

A.__The collection of delinquent taxes imposed by this Title;

B.__The collection of property taxes in the unorganized territory; and

C.__The collection of income taxes for which telephonic returns are filed.

3.__Federal offset fees.__The State Tax Assessor may subtract from revenues received fees imposed upon the State by the United States Department of the Treasury for offsetting state income tax obligations against federal income tax refunds pursuant to Section 6402(e) of the Code.

Sec. 3. 36 MRSA §142, as amended by PL 1999, c. 414, §6 and c. 521, Pt. A, §1, is repealed and the following enacted in its place:

§142.__Cancellation and abatement

The State Tax Assessor may, within 3 years from the date of assessment or whenever a written request has been submitted by a taxpayer within 3 years of the date of assessment, cancel any tax that has been levied illegally.__In addition, if justice