Maine LD 1067: An Act To Institute A State Tax Amnesty Program To Increase General Revenue Collections

Bill Text

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130th MAINE LEGISLATURE
FIRST REGULAR SESSION-2021
Legislative Document No. 1067
S.P. 335 In Senate, March 11, 2021
An Act To Institute a State Tax Amnesty Program To Increase
General Revenue Collections
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BALDACCI of Penobscot.
Cosponsored by Senators: CURRY of Waldo, President JACKSON of Aroostook,
Representatives: COLLINGS of Portland, SACHS of Freeport.

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1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 36 MRSA c. 914-E is enacted to read:
3 CHAPTER 914-E
4 2021 TAX AMNESTY PROGRAM
5 §6621. 2021 Maine Tax Amnesty Program established
6 There is established the 2021 Maine Tax Amnesty Program, referred to in this chapter
7 as "the tax amnesty program." The tax amnesty program is intended to encourage
8 delinquent taxpayers to comply with the State's tax law and to enable the assessor to
9 identify and collect previously unreported taxes and to accelerate collection of certain
10 delinquent tax liabilities. The long-term goal of the tax amnesty program is to improve
11 taxpayer compliance with the State's tax law.
12 §6622. Administration
13 The assessor shall administer the 2021 Maine Tax Amnesty Program. The tax amnesty
14 program applies to tax liabilities delinquent as of September 30, 2021, including tax due
15 for which a return has not been filed. A taxpayer may participate in the tax amnesty
16 program whether or not the taxpayer is under audit and without regard to whether the
17 amount due is subject to a pending administrative or judicial proceeding, except that this
18 does not include pending criminal action or debts for which the State has secured a warrant
19 or civil judgment in its favor in Superior Court. A taxpayer may participate in the tax
20 amnesty program to the extent of the uncontested portion of an assessed liability.
21 Participation in the program is conditioned upon the taxpayer's agreement to forgo the right
22 to protest or pursue an administrative or judicial proceeding with regard to returns filed
23 under the tax amnesty program or to claim any refund of money paid under the tax amnesty
24 program. A taxpayer with a tax liability within the limitations of this chapter is absolved
25 from criminal or civil prosecution or civil penalties plus 1/2 of the interest associated with
26 any such liability except as otherwise provided in this chapter if the taxpayer:
27 1. Return filed. Properly completes and files a 2021 amnesty tax return as described
28 in section 6625 and as required by the assessor;
29 2. Tax and interest paid. Pays all tax and interest as determined on the 2021 amnesty
30 tax return, described in section 6625, before the end of the amnesty period;
31 3. No criminal action pending. Is not currently charged with, and has not been
32 accepted by the Attorney General for criminal prosecution arising from, a violation of the
33 state tax law as provided in this Title or Title 17-A, or is not applying for relief on a debt
34 that is the result of a criminal conviction; and
35 4. No collection by warrant or civil action. Is not applying for relief with respect to
36 a tax liability for which the State has secured a warrant or civil judgment in its favor in
37 Superior Court.
38 §6623. Undisclosed liabilities
39 Nothing in this chapter may be construed to prohibit the assessor from instituting civil
40 or criminal proceedings against any taxpayer with respect to any amount of tax that is not

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41 disclosed either on the 2021 amnesty tax return, described in section 6625, or on any other
42 return filed with the assessor.
3 §6624. Amnesty period
4 The time period during which a 2021 amnesty tax return, described in section 6625,
5 may be filed is October 1, 2021 to December 31, 2021.
6 §6625. Amnesty tax return
7 The assessor shall prepare and make available the 2021 amnesty tax return, referred to
8 in this chapter as "the amnesty tax return." The return and associated guidelines prepared
9 by the assessor that govern participation in the 2021 Maine Tax Amnesty Program are
10 exempt from the Maine Administrative Procedure Act. The application requires the
11 approval of the assessor. The assessor may deny any application not consistent with the
12 tax amnesty program.
13 §6626. Preamnesty settlements
14 Notwithstanding any provision of this chapter to the contrary, the assessor shall, during
15 the period beginning on the effective date of this chapter to October 1, 2021, make a
16 settlement offer that requires full payment of tax and 1/2 of the accrued interest to any
17 taxpayer that has a recorded and recognized delinquent state tax liability as of the effective
18 date of this chapter. The settlement offer authorized under this section does not apply to a
19 taxpayer whose liability is the result of a criminal conviction or is currently charge