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into the forms, instructions and withholding tables for the | | appropriate tax years. |
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| | | 2.__Rate reduction factor.__The rate reduction factor is 1% of | | the tax rate provided by section 5111 for tax years beginning on | | or after January 1, 2005, without taking into consideration the | | adjustments required by this section except for subsection 1, | | paragraph A. |
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| | | 3.__Indexing suspension factor.__For tax years beginning after | | December 31, 2005 and before January 1, 2010, the State Tax | | Assessor shall determine the indexing suspension factor. The | | indexing suspension factor for each of these years is one minus | | an amount equal to the sum of the following amounts, divided by | | the total projected individual income tax liability for tax years | | beginning in the next calendar year: |
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| | | A. The estimated increase in individual income tax liability | | for tax years beginning in the next calendar year arising | | from the suspension of indexing pursuant to section 5403, as | | estimated by the assessor, reduced by: |
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| | | (1) The amount of estimated revenue foregone for tax | | years beginning in the next calendar year as a result | | of the increase from $2,000 to $4,750 of the credit | | contained in section 5219-N, subsection 1, as estimated | | by the assessor; and |
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| | | (2) The amount of estimated revenue foregone for tax | | years beginning in the next calendar year as a result | | of the decrease in the tax rate from 8.5% to 8.45% as | | provided in section 5111-C, subsection 1, paragraph A | | as applied in subsequent years, as estimated by the | | assessor. |
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| | | The factor must be rounded up to the nearest 1/100 of a | | percentage point.__The determination required by this subsection | | must be made on or about September 15th of the year preceding its | | application. |
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| | | Sec. A-9. 36 MRSA §5203-C, sub-§5 is enacted to read: |
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| | | 5.__Rates reduced.__Beginning in 2005, and each subsequent | | calendar year thereafter through 2017, on or about September | | 15th, the State Tax Assessor shall, in accordance with this | | subsection and for taxable years beginning during the calendar | | year, adjust the tax rates contained in subsection 1, paragraph | | H, subparagraphs (1) and (2).__Each tax rate contained in | | subsection 1, paragraph H, subparagraphs (1) and (2) as | | previously adjusted must be reduced in the same proportion to |
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