Note: within this Department, only the Bureau of Revenue Services has filed a regulatory agenda.

CONTACT PERSON: David E. Bauer, Counsel, Maine Revenue Services, 24 State House Station, Augusta, ME 04333. 207/287-2076.

EMERGENCY RULES ADOPTED SINCE LAST REGULATORY AGENDA: None.

CONSENSUS-BASED RULE DEVELOPMENT: Statement pursuant to 5 MRSA § 8060 sub-§ 1 ¶ A (see PL 1999 Ch. 307): The Bureau of Revenue Services does not anticipate engaging in any consensus-based rule development process.

GENERAL

CHAPTER TITLE: Standard Interest Rate
Chapter 101
STATUTORY AUTHORITY: 36 MRSA §186
PURPOSE: To amend the rule, if necessary, to change the standard interest rate charged on unpaid taxes and paid by the State on overpayments of taxes.
ANTICIPATED ADOPTION DATE: January 1, 2001
THOSE POTENTIALLY BENEFITED: Taxpayers subject to interest charges or payments.
THOSE POTENTIALLY REGULATED: Taxpayers subject to interest charges or payments.

CHAPTER TITLE: Record Keeping and Retention of Records
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To provide additional guidance beyond the statute for taxpayers regarding record keeping and retention. Special attention will be given to electronic data interchange technology.
ANTICIPATED ADOPTION DATE: December 31, 2000
THOSE POTENTIALLY BENEFITED: The State and All Maine taxpayers.
THOSE POTENTIALLY REGULATED: All Maine taxpayers.

INCOME/ESTATE TAX DIVISION

CHAPTER TITLE: Apportionment of Income
Chapter 801
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To repeal and replace the rule that provides guidance to multi-state businesses who must apportion income to Maine pursuant to
36 MRSA §5211. It also provides specific guidelines for determining apportionment factors.
ANTICIPATED ADOPTION DATE: November 30, 2000
THOSE POTENTIALLY BENEFITED: The State and business taxpayers who have nexus with Maine and who operate in more than one state.
THOSE POTENTIALLY REGULATED: Business taxpayers who have nexus with Maine and who operate in more than one state.

CHAPTER TITLE: Apportionment of Income for Certain Special Industries.
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To provide guidance to multi-state business taxpayers in certain special industries who have nexus with Maine regarding income apportionment.
ANTICIPATED ADOPTION DATE: March 31, 2001
THOSE POTENTIALLY BENEFITED: The State and multi-state business taxpayers in certain special industries who have nexus with Maine.
THOSE POTENTIALLY REGULATED: Multi-state business taxpayers in certain special industries who have nexus with Maine.

CHAPTER TITLE: Taxable Income of Nonresident Individuals
Chapter 806
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To amend the rule that provides income tax guidance to nonresident individual taxpayers in response to legislative changes. The amendments update provisions relating to the filing thresholds and to business credits.
ANTICIPATED ADOPTION DATE: November 1, 2000
THOSE POTENTIALLY BENEFITED: Nonresident individual taxpayers.
THOSE POTENTIALLY REGULATED: Nonresident individual taxpayers.

CHAPTER TITLE: Research Expense Income Tax Credit
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To provide additional guidance beyond the statute regarding claiming the research expense tax credit.
ANTICIPATED ADOPTION DATE: December 31, 2000
THOSE POTENTIALLY BENEFITED: Individual, corporate, and fiduciary taxpayers with qualified research expenses.
THOSE POTENTIALLY REGULATED: Individual, corporate, and fiduciary taxpayers with qualified research expenses.

CHAPTER TITLE: Combined Reporting
Chapter 810
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To establish standards for filing of combined corporate reports and of single returns for certain affiliated corporations that are engaged in a unitary business. (See 36 MRSA § 5220(5).)
ANTICIPATED ADOPTION DATE: September 30, 2001
THOSE POTENTIALLY BENEFITED: The State and corporations doing business in Maine.
THOSE POTENTIALLY REGULATED: Corporations doing business in Maine.

CHAPTER TITLE: Low-Cost Drug Card Program for the Elderly and Disabled
Chapter 902
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To amend the existing rule to provide additional guidance in filing an application when a substantial change in circumstances results in a reduction of household income.
ANTICIPATED ADOPTION DATE: December 31, 2000
THOSE POTENTIALLY BENEFITED: Elderly and disabled persons who experience a reduction in income.
THOSE POTENTIALLY REGULATED: Elderly and disabled persons who experience a reduction in income.

CHAPTER TITLE: Withholding Tax Reports and Payments
Chapter 803
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To amend the existing rule to provide guidance for employers who use an electronic system for federal form W-4 relating to the number of withholding allowances claimed by employees.
ANTICIPATED ADOPTION DATE: June 30, 2001
THOSE POTENTIALLY BENEFITED: Employers and withholding agents required to withhold Maine Income Tax.
THOSE POTENTIALLY REGULATED: Employers and withholding agents required to withhold Maine Income Tax.

Net Operating Loss Add-Back Modification
Chapter 807
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To amend the existing rule to bring it into agreement with federal regulations relating to carry back or carry forward of net operating loss deductions.
ANTICIPATED ADOPTION DATE: December 31, 2000
THOSE POTENTIALLY BENEFITED: Individual and corporate taxpayers who experience a net operating loss.
THOSE POTENTIALLY REGULATED: Individual and corporate taxpayers who experience a net operating loss.

CHAPTER TITLE: Pension Benefit Exemption
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To provide guidance in computing the exempt amount of a retirement benefit that is split between spouses.
ANTICIPATED ADOPTION DATE: December 31, 2000
THOSE POTENTIALLY BENEFITED: Individual taxpayers who are receiving benefits from a retirement plan.
THOSE POTENTIALLY REGULATED: Individual taxpayers who are receiving benefits from a retirement plan.

RESEARCH DIVISION

CHAPTER TITLE: Employment Tax Increment Financing
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA Chapter 917
PURPOSE: To Provide additional guidance beyond the statute regarding calculating and paying the employment tax increment.
ANTICIPATED ADOPTION DATE: December 31, 2001
THOSE POTENTIALLY BENEFITED: Maine businesses who add 15 or more new qualified employees.
THOSE POTENTIALLY REGULATED: Qualified Maine businesses.

CHAPTER TITLE: Loring Job Increment Financing Fund
Chapter (New Rule)
STATUTORY AUTHORITY: 5 MRSA § 13080-T
PURPOSE: To provide additional guidance beyond the statute regarding computation of the Employment Tax Increment for deposit in the fund.
ANTICIPATED ADOPTION DATE: December 31, 2001
THOSE POTENTIALLY BENEFITED: Loring Development Authority and businesses located within the base area.
THOSE POTENTIALLY REGULATED: Loring Development Authority.

COMPLIANCE DIVISION

CHAPTER TITLE: Successor Liability for Trust Fund Taxes
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To provide additional guidance beyond the statute regarding the liability of a successor business owner for trust fund taxes owed by a former owner.
ANTICIPATED ADOPTION DATE: October 1, 2000
THOSE POTENTIALLY BENEFITED: The State and persons who purchase an operating business whose former owner may owe trust fund taxes to the State.
THOSE POTENTIALLY REGULATED: Business owners who sell an existing business and the successor owner or owners.

PROPERTY TAX DIVISION

CHAPTER TITLE: Reimbursement of business personal property tax.
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 6651
PURPOSE: To clarify property qualified for business property tax reimbursement, and procedural details of the BETR program.
ANTICIPATED ADOPTION DATE: April 1, 2001
THOSE POTENTIALLY BENEFITED: Taxpayers who own personal property used exclusively for business purposes and municipal assessors.
THOSE POTENTIALLY REGULATED: Businesses claiming reimbursement of property tax paid on personal property.

CHAPTER TITLE: Tree Growth Tax Law Valuations
Chapter 202
STATUTORY AUTHORITY: 36 MRSA § 576
PURPOSE: The State Tax Assessor must establish current use valuations for classified forestlands annually after considering area timber stumpage sales during previous calendar year.
ANTICIPATED ADOPTION DATE: September 30, 2001
THOSE POTENTIALLY BENEFITED: Taxpayers with land classified under Tree Growth Tax Law and municipal assessors require guidance in appropriate valuation of forestland based on representative proportions of forest growth and products generated to reduce the incidence of forced conversion or over harvesting of forestlands due to property tax burdens.
THOSE POTENTIALLY REGULATED: N/A

SALES/EXCISE TAX DIVISION

CHAPTER TITLE: Sales for Resale and Sales of Packaged Materials
Chapter 301
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: Amend to update for Legislative changes.
ANTICIPATED ADOPTION DATE: April 1, 2001
THOSE POTENTIALLY BENEFITED: Maine retailers.
THOSE POTENTIALLY REGULATED: Maine retailers.

CHAPTER TITLE: Government Agencies, Exempt Organizations and Sales Thereto
Chapter 302
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: Amend existing rules to include definition of "church" as administratively applied since the late 70's and to establish renewals for exemption certificates.
ANTICIPATED ADOPTION DATE: March 1, 2001
THOSE POTENTIALLY BENEFITED: All organizations and entities exempt from sales and use tax pursuant to 36 MRSA §1760.
THOSE POTENTIALLY REGULATED: Corporations and Individuals making sales to exempt organizations.

CHAPTER TITLE: Reports and Payments
Chapter 304
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To amend rule to address filing of consolidated reports.
ANTICIPATED ADOPTION DATE: February 15, 2001
THOSE POTENTIALLY BENEFITED: Certain large filers of sales tax returns.
THOSE POTENTIALLY REGULATED: Certain large filers of sales tax returns.

CHAPTER TITLE: Direct Payment Permits
Chapter 308
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To address concerns in areas of record requirements, audit costs, parts inventory, information on records, methods of record retention, and periodic renewal of permits.
ANTICIPATED ADOPTION DATE: March 15, 2001
THOSE POTENTIALLY BENEFITED: All holders of direct payment permits composed of utilities and manufacturers.
THOSE POTENTIALLY REGULATED: Current and future holders of direct pay permits.

CHAPTER TITLE: Rental of Tangible Personal Property
Chapter 316
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: Update and amend existing rule.
ANTICIPATED ADOPTION DATE: March 1, 2001
THOSE POTENTIALLY BENEFITED: Lessors and lessees of tangible personal property.
THOSE POTENTIALLY REGULATED: Lessors and lessees of tangible personal property.

CHAPTER TITLE: Reporting of Certain Sales of Tobacco Products.
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: Provide enforcement mechanism for requirement in Master Tobacco Settlement that sales of tobacco products by non-participating manufacturers be reported to the State.
ANTICIPATED ADOPTION DATE: March 1, 2000
THOSE POTENTIALLY BENEFITED: The State and all Maine Taxpayers
THOSE POTENTIALLY REGULATED: Certain tobacco vendors and manufacturers.

CHAPTER TITLE: Sales of Food Products
Chapter 322
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To amend existing rule to conform to recent legislative changes in regard to "prepared food" and to change statutory references.
ANTICIPATED ADOPTION DATE: February 1, 2001
THOSE POTENTIALLY BENEFITED: Maine residents and visitors who purchase staples, snacks, and prepared foods.
THOSE POTENTIALLY REGULATED: All sellers of grocery staples, snack foods, and prepared foods.

CHAPTER TITLE: Commercial Agricultural Production and Commercial Fishing
Chapter 323
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: Amend existing rule to include commercial aquaculture.
ANTICIPATED ADOPTION DATE: January 15, 2001
THOSE POTENTIALLY BENEFITED: Taxpayers engaged in commercial aquaculture.
THOSE POTENTIALLY REGULATED: Taxpayers engaged in commercial aquaculture.

CHAPTER TITLE: Rentals of Living Quarters
Chapter (New Rule)
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To further define "in connection with employment or education" as found in 36 MRSA § 1760, sub-§ 20(B).
ANTICIPATED ADOPTION DATE: February 15, 2001
THOSE POTENTIALLY BENEFITED: Students/employees renting living quarters.
THOSE POTENTIALLY REGULATED: All renters of living quarters, as well as all transients.

CHAPTER TITLE: Fuel Tax Rules
Chapters 501-506
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To update all rules relating to fuel taxes.
ANTICIPATED ADOPTION DATE: April 1, 2001
THOSE POTENTIALLY BENEFITED: Fuel users and suppliers.
THOSE POTENTIALLY REGULATED: Fuel users and suppliers.

CHAPTER TITLE: Cigarette Tax Rules
Chapters 701-705
STATUTORY AUTHORITY: 36 MRSA § 112
PURPOSE: To update all rules relating to cigarette tax.
ANTICIPATED ADOPTION DATE: July 1, 2001
THOSE POTENTIALLY BENEFITED: Cigarette Distributors
THOSE POTENTIALLY REGULATED: Cigarette Distributors