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An Act To Clarify the Collection Process for the Commercial Forestry Excise Tax
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §2726, sub-§4, as enacted by PL 1985, c. 514, §2, is amended to read:
 
4. Supplemental assessments.   Supplemental assessments may be made in accordance with section 141., subsection 1, except that the following limitations apply:
 
A.  If a landowner who has failed to file a return under this chapter signs an affidavit stating that the landowner did not know of the requirement to file a return under this chapter, a supplemental assessment may be made only for the current year and the 2 preceding years. Interest and penalties may not be assessed; and
 
B.  If a landowner knew of the requirement to file a return under this chapter and fails to file an affidavit as provided under paragraph A or the assessor determines that the affidavit under paragraph A was falsely filed, the supplemental assessment may be made for the current year and the 5 preceding years plus interest and penalties.
Sec. 2. Amnesty. The State Tax Assessor shall report by December 15, 2011 to the Joint Standing Committee on Taxation regarding whether an amnesty program designed to permit landowners who have not been paying the commercial forestry excise tax and who voluntarily report to the assessor to have all prior taxes, interest and penalties waived except for the 2 years prior to reporting will contribute to the State’s ability to enforce and collect revenue due under the tax.
 
SUMMARY
This bill limits the period of assessments for back taxes under the commercial forestry excise tax and provides that landowners who sign an affidavit stating that they were unaware of the requirement to file a return may be assessed for the current year and the 2 previous years only, without the accumulation of interest or penalties.
The bill also directs the State Tax Assessor to evaluate whether an amnesty program might contribute to the State’s ability to enforce and collect revenue due under the tax.