Signed by Governor Joseph Baldacci

Vote Smart's Synopsis:

Vote to pass a bill that amends the effective date of the tax law amendments proposed in Public Law 2009, chapter 382 from January 1, 2010 to January 1, 2011, as a result of the petition of the electors for a referendum held on June 8, 2010.

Highlights:

-Amends the effective date of the flat 6.5 percent income tax rate for all individuals, regardless of tax filing status and income (Sec. A-1 of Public Law, Chapter 382) from January 1, 2010 to January 1, 2011, which is set to replace the following schedule for income tax rates (Sec. 2):

-For singles and married individuals filing separately:
-2 percent of all income for incomes not over $4,200; -$84 plus 4.5 percent of income over $4,200 for incomes over $4,200 but not over $8,350; -$271 plus 7 percent of income over $8,350 for incomes over $8,350 but not over $16,700; and -$856 plus 8.5 percent of income over $16,700 for incomes over $16,700;
-For heads of households:
-2 percent of all income for incomes not over $6,300; -$126 plus 4.5 percent of income over $6,300 for incomes over $6,300 but not over $12,500; -$405 plus 7 percent of income over $12,500 for incomes over $12,500 but not over $25,050; and -$1,284 plus 8.5 percent of income over $20,050 for incomes over $25,050.
-For married couples filing jointly and surviving spouses:
-2 percent of all income for incomes over $8,400; -$168 plus 4.5 percent of all income over $8,400 for incomes over $8,400 but not over $16,700; -$542 plus 7 percent of all income over $16,700 for incomes over $16,700 but not over $33,400; and -$1,711 plus 8.5 percent of all income over $33,400 for incomes over $33,400.

-Amends the effective date of the income tax surcharge equal 0.35 percent income over $250,000, in addition to the flat 6.5 percent income tax rate, from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the repeal of the alternative minimum tax for resident and nonresident individuals and estates and trusts (5.4 percent tax remains for corporations) from January 1, 2010 to January 1, 2011, which is imposed at the following (Sec. 2):

-For taxpayers other than a corporation:
-7 percent of income that does not exceed $175,000; and -7.6 percent of alternative minimum taxable income that exceeds $175,000;
-For married individuals filing a separately:
-7 percent of income that does not exceed $87,500; and -7.6 percent of income that exceeds $87,500.

-Amends the effective date of the expansion of the sales and use tax to include the following from January 1, 2010 to January 1, 2011 (Sec. 2):

-Rental of living quarters in a hotel, rooming house, or tourist or trailer camp; -Transmission and distribution of electricity; -Rental or lease of tangible personal property; -Sale of prepaid calling service; -Amusement, entertainment, and recreation services, including, but not limited to, admission fees for movies, concerts, amusement parks, festivals, exhibition shows, and sight-seeing excursions, and entertainment services provided by musicians and other performers; -Installation, repair, and maintenance services; -Personal property services, including services related to dry cleaning, laundry, non-medical pet attention, house cleaning, meal preparation, and warehousing and storage; -Transportation and courier services; and -Beverages containing less than 51 percent vegetable or fruit juice by volume, except for milk and milk substitutes.

-Amends the effective date of the sales tax increase for liquor and rental of living quarters from 7 percent to 8.5 percent from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the sales tax increase for vehicle rentals for periods of of less than 1 year from 10 percent to 12.5 percent from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the tax credit for charitable contributions equal to 5 percent of the amount of the contributions that exceed $250,000 from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the tax credit for individuals 65 years of age or older equal to $65 ($120 for married couples filing jointly) from January 1, 2010 to January 1, 2011 (Sec. 2). -Alleges that if the tax amendments were enacted without adjustments to it's effective dates, it would result in a budget shortfall of $50 million (Sec. 1). -Specifies that the provisions of this Act shall only take effect if Public Law 2009, Chapter 382 is not rejected by a majority of voters in the June 8, 2010 referendum (Secs. 1 & 3).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the effective date of the tax law amendments proposed in Public Law 2009, chapter 382 from January 1, 2010 to January 1, 2011, as a result of the petition of the electors for a referendum held on June 8, 2010.

Highlights:

-Amends the effective date of the flat 6.5 percent income tax rate for all individuals, regardless of tax filing status and income (Sec. A-1 of Public Law, Chapter 382) from January 1, 2010 to January 1, 2011, which is set to replace the following schedule for income tax rates (Sec. 2):

-For singles and married individuals filing separately:
-2 percent of all income for incomes not over $4,200; -$84 plus 4.5 percent of income over $4,200 for incomes over $4,200 but not over $8,350; -$271 plus 7 percent of income over $8,350 for incomes over $8,350 but not over $16,700; and -$856 plus 8.5 percent of income over $16,700 for incomes over $16,700;
-For heads of households:
-2 percent of all income for incomes not over $6,300; -$126 plus 4.5 percent of income over $6,300 for incomes over $6,300 but not over $12,500; -$405 plus 7 percent of income over $12,500 for incomes over $12,500 but not over $25,050; and -$1,284 plus 8.5 percent of income over $20,050 for incomes over $25,050.
-For married couples filing jointly and surviving spouses:
-2 percent of all income for incomes over $8,400; -$168 plus 4.5 percent of all income over $8,400 for incomes over $8,400 but not over $16,700; -$542 plus 7 percent of all income over $16,700 for incomes over $16,700 but not over $33,400; and -$1,711 plus 8.5 percent of all income over $33,400 for incomes over $33,400.

-Amends the effective date of the income tax surcharge equal 0.35 percent income over $250,000, in addition to the flat 6.5 percent income tax rate, from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the repeal of the alternative minimum tax for resident and nonresident individuals and estates and trusts (5.4 percent tax remains for corporations) from January 1, 2010 to January 1, 2011, which is imposed at the following (Sec. 2):

-For taxpayers other than a corporation:
-7 percent of income that does not exceed $175,000; and -7.6 percent of alternative minimum taxable income that exceeds $175,000;
-For married individuals filing a separately:
-7 percent of income that does not exceed $87,500; and -7.6 percent of income that exceeds $87,500.

-Amends the effective date of the expansion of the sales and use tax to include the following from January 1, 2010 to January 1, 2011 (Sec. 2):

-Rental of living quarters in a hotel, rooming house, or tourist or trailer camp; -Transmission and distribution of electricity; -Rental or lease of tangible personal property; -Sale of prepaid calling service; -Amusement, entertainment, and recreation services, including, but not limited to, admission fees for movies, concerts, amusement parks, festivals, exhibition shows, and sight-seeing excursions, and entertainment services provided by musicians and other performers; -Installation, repair, and maintenance services; -Personal property services, including services related to dry cleaning, laundry, non-medical pet attention, house cleaning, meal preparation, and warehousing and storage; -Transportation and courier services; and -Beverages containing less than 51 percent vegetable or fruit juice by volume, except for milk and milk substitutes.

-Amends the effective date of the sales tax increase for liquor and rental of living quarters from 7 percent to 8.5 percent from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the sales tax increase for vehicle rentals for periods of of less than 1 year from 10 percent to 12.5 percent from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the tax credit for charitable contributions equal to 5 percent of the amount of the contributions that exceed $250,000 from January 1, 2010 to January 1, 2011 (Sec. 2). -Amends the effective date of the tax credit for individuals 65 years of age or older equal to $65 ($120 for married couples filing jointly) from January 1, 2010 to January 1, 2011 (Sec. 2). -Alleges that if the tax amendments were enacted without adjustments to it's effective dates, it would result in a budget shortfall of $50 million (Sec. 1). -Specifies that the provisions of this Act shall only take effect if Public Law 2009, Chapter 382 is not rejected by a majority of voters in the June 8, 2010 referendum (Secs. 1 & 3).

Full Bill Text