Sec. 61. Application. That section of this Act that amends the Maine Revised Statutes, Title 36, section 5278, subsection 5, paragraph B applies retroactively to tax years beginning on or after January 1, 2002. That section of this Act that repeals and replaces Title 36, section 6652, subsection 1-B, paragraph C applies retroactively to property tax years beginning on or after April 1, 2004.

SUMMARY

This bill makes the following changes to the laws governing taxation.

1. It corrects the name of the Department of Administrative and Financial Services, Bureau of Revenue Services in a statute relating to state civil service positions.

2. It clarifies that the fees established for service of tax warrants by sheriffs and deputy sheriffs apply to warrants for all taxes imposed under the Maine Revised Statutes, Title 36.

3. It provides for the assessment and collection of liabilities arising from failure of a 3rd party to surrender property subject to levy in the same manner as other tax liabilities and clarifies that the rate of interest imposed on liabilities arising from failure of a 3rd party to surrender property subject to levy is the general rate applicable to unpaid taxes. The change establishes progressive enforcement procedures for collecting these debts and incorporates appropriate taxpayer protections in the collection process.

4. It relocates the substantive provisions of existing Title 36, sections 1964 and 3240, which relate to priority of tax debts, to the general administrative provisions of Title 36. These statutes, which apply to any tax, are inappropriately located in the sales and use tax law and the motor fuel tax law.

5. It extends the due date of the tax incidence report by 3 months from October 1st of each even-numbered year to January 1st of each odd-numbered year. Extending the deadline will ensure that the report is based on the latest economic and revenue forecasts developed for use in the Governor's biennial budget.