MRS Rulemaking Activity

NOTICE: Public Hearing for New Rule 104 - Electronic Filing of Maine Tax Returns. MRS will hold a public hearing on new Rule 104 Electronic Filing of Maine Tax Returns on January 9, 2008 at 9 a.m. The hearing will take place in the Androscoggin/Aroostook/ Cumberland Room at the Augusta Civic Center. The purpose of the public hearing is to take comments from interested parties, which will be responded to after the close of the comment period. Participants are encouraged to provide copies of written testimony. Interested parties may also submit written comments. The deadline for written comments on Rule 104 has been extended to January 21, 2008. Written comments should be directed to Nanette Ardry, 24 State House Station, Augusta, ME 04333 or via e-mail to nanette.m.ardry@maine.gov.

Rule 104 requires electronic filing of certain Maine tax returns if specified thresholds are exceeded. The proposed rule may be seen on the MRS web site at www.maine.gov/revenue/rules.

Rule 102 Revised. Maine Revenue Services recently completed revisions to Rule 102, “Electronic Funds Transfer.” The new rule, which may be viewed on the MRS web site at www.maine.gov/revenue/rules, includes changes to EFT thresholds and various other changes. Revised EFT thresholds are based on the taxpayer's combined tax liability to the state for all taxes collected by the Bureau, except property taxes and commercial forestry excise taxes. Beginning January 1, 2008, taxpayers having a total combined tax liability of $100,000 or more during lookback periods ending in 2007 would be required to remit taxes via EFT. Beginning January 1, 2009, the EFT threshold would be reduced to $50,000 and, for years after 2009, the threshold would be $25,000. All changes to Rule 102 are effective January 7, 2008.

Rule 207 Revised. Maine Revenue Services recently completed revisions to Rule 207, “Real Estate Transfers.” The new rule may be viewed on the MRS web site at www.maine.gov/revenue/rules. Among other things, the amended rule clarifies the exceptions to the requirement to provide tax identification numbers for the parties to a real estate transfer, such as when the numbers are unavailable. All changes to Rule 207 are effective January 7, 2008.

Rule 601 Adopted. Maine Revenue Services recently adopted Rule 601, “Estate Tax.” The new rule may be viewed on the MRS web site at www.maine.gov/revenue/rules. Among other things, Rule 601 clarifies requirements for filing Maine estate tax returns, requesting extensions, making payments, and requesting the release of an estate tax lien. The Rule provides guidance on the calculation of the Maine gross estate, the inclusion of gifts, and the sourcing and valuation of estate property. The requirements for qualified terminable interest property, Maine elective property, and qualified domestic trusts are explained in detail in Rule 601. Rule 601 is effective January 7, 2008.

Amendments to Rule 801, "Apportionment of Income." This rule, which has been in place since 1976 and was repealed and replaced in 2001, explains the basis for the apportionment of net income of corporations, pass-through entities, sole proprietorships and other business types. The proposed amendments reflect recent statutory changes to the apportionment of income and clarify definitions and provide explanations of various aspects of apportionment.

Proposed amended Rule 801 can be found on the MRS web site at www.maine.gov/revenue/rules. Written comments are due by February 15, 2008 and should be directed to Nanette Ardry,Maine Revenue Services, 24 State House Station, Augusta Maine 04333 or via e-mail to nanette.m.ardry@maine.gov.

Amendments to Rule 810, "Maine Unitary Business taxable Income, Combined Reports and Tax Returns.” This rule, which has been in place since 2001, establishes standards for determining income tax for unitary businesses and for filing combined reports. The proposed amendments reflect recent statutory changes to the apportionment of income and clarify definitions and provide guidance regarding estimated tax payments.

Proposed amended Rule 810 can be found on the MRS web site at www.maine.gov/revenue/rules. Written comments are due by February 15, 2008 and should be directed to Nanette Ardry,Maine Revenue Services, 24 State House Station, Augusta Maine 04333 or via e-mail to nanette.m.ardry@maine.gov.