Tax Alert

 

Maine Revenue Services Rulemaking Activity

MRS rulemaking proposals in process:

New Rule 401 - Service Provider Tax - Return and Payment of Tax

MRS is proposing to adopt a new Rule 401, which establishes requirements for the filing of tax returns and the payment of the Maine Service Provider Tax pursuant to 36 MRSA 2554. The proposed rule may be seen on the MRS website. The provisions of the rule are very similar to the provisions of Rule 304, which covers sales tax returns and payments. Comments are due by November 6, 2006 and should be directed to David Bauer, 24 State House Station, Augusta , ME 04333 or via e-mail to david.e.bauer@maine.gov.

New Rule 324 - ConnectME Tax Reimbursements

MRS is proposing to adopt a new Rule 324 providing guidance for taxpayers on how to qualify and apply for reimbursement of Maine sales and use taxes under 36 MRSA 2017. A rule on this topic was mandated by the Legislature in PL 2005, Ch. 665, the purpose of which is to facilitate the expansion of broadband and wireless service throughout the State of Maine. Comments are due by November 6, 2006 and should be directed to Scott Schul, 24 State House Station, Augusta , ME 04333 or via e-mail to scott.e.schul@maine.gov . For further information about the ConnectME program, visit www.maine.gov/connectme.

Amendments to Rule 302 - Sales to Government Agencies & Exempt Organizations

RS is proposing to adopt amendments to Rule 302, which has been in place for many years and serves to explain the administration of sales tax exemptions pertaining to government agencies and exempt organizations. Various minor amendments are being proposed, none of which change current administrative practice in any way. The proposed rule may be seen on the MRS website. Comments are due by November 13, 2006 and should be directed to David Bauer, 24 State House Station, Augusta , ME 04333 or via e-mail to david.e.bauer@maine.gov .

2007 Individual Income Tax Rates

Below are the individual income tax rate schedules for tax years beginning in 2007. The rate schedules for 2006 are found at www.state.me.us/revenue/forms/1040/2006/RateSched06.pdf.

State of Maine - Individual Income Tax - 2007 Rates 2007 Cost-of-Living adjustment is 1.1365

Note: The 2007 tax rate schedule dollar bracket amounts are adjusted by multiplying the cost-of-living adjustment, 1.1365, by the dollar amounts of the tax rate tables specified in 36 M.R.S.A. 5111 subsections 1-B, 2-B and 3-B (see 36 M.R.S.A. 5403). The personal exemption amount is not subject to the inflation adjustment for tax year 2007.

Do not use these tax rate schedules to determine income tax withholding from wages.

Tax Rate Schedule #1 For Single Individuals and Married Persons Filing Separate Returns

If the taxable income is:

The tax is:

Less than $4,750

2.0% of the taxable income

$ 4,750 but less than $ 9,450

$ 95 plus 4.5% of excess over $ 4,750

$ 9,450 but less than $18,950

$ 307 plus 7.0% of excess over $ 9,450

$ 18,950 or more

$ 972 plus 8.5% of excess over $18,950

Tax Rate Schedule #2 For Unmarried or Legally Separated Individuals who Qualify as Heads-of-Households

If the taxable income is:

The tax is:

Less than $7,150

2.0% of the taxable income

$ 7,150 but less than $14,200

$ 143 plus 4.5% of excess over $ 7,150

$14,200 but less than $28,450

$ 460 plus 7.0% of excess over $14,200

$28,450 or more

$ 1,458 plus 8.5% of excess over $28,450

Tax Rate Schedule #3 For Married Individuals and Surviving Spouses Filing Joint Returns

If the taxable income is:

The tax is:

Less than $9,500

2.0% of the taxable income

$ 9,500 but less than $18,950

$ 190 plus 4.5% of excess over $ 9,500

$18,950 but less than $37,950

$ 615 plus 7.0% of excess over $18,950

$37,950 or more

$ 1,945 plus 8.5% of excess over $37,950

Personal Exemption: $2,850

Standard Deduction:

Single - $5,350

Married Filing Jointly - $8,900

Head-of-Household - $7,850

Married Filing Separate - $4,450

Additional Amount for Age or Blindness:

$1,050 if married (whether filing jointly or separately) or a qualified surviving spouse. The additional amount is $2,100 if one spouse is 65 or over and blind, $2,100* if both spouses are 65 or over, $4,200* if both spouses are 65 or over and blind, etc.

*If married filing separately, these amounts apply only if you can claim an exemption for your spouse.

$1,300 if unmarried (single or head-of-household). The additional amount is $2,600 if the individual is both 65 or over and blind.

Note: If taxpayer can be claimed as a dependent on another person's return, the standard deduction is the greater of $850 or earned income plus $300 (up to the standard deduction amount).

2006 Tax Forms

Form 2333ME for ordering 2006 tax forms is now available on the Maine Revenue Services web site at www.maine.gov/revenue/forms/general/2333_06.pdf . A printed version of Form 2333ME is also available by calling ( 207) 624-7894 to leave your name and address.

Tax Practitioner Institute

The 2006 Tax Practitioner Institute, hosted by the Service Corps of Retired Executives Association (SCORE), will be held at three locations in Maine on November 7 (Bangor), November 9 (Portland), and November 14 (Augusta).

Federal and state tax specialists will present workshops designed for those interested in keeping abreast of federal and state tax laws and regulations. The Institute provides 8 hours (including one hour of ethics) of CPE credits.

Seating will be limited and registrations will be accepted by mail only. For more information on Institute programs and locations and for registration forms, contact SCORE at (207) 622-8509 or visit the ScoreMaine.org web site at www.scoremaine.org/0_main/Brochure2006.pdf.

Department
Telephone Numbers
FAX Numbers
E-mail Addresses
Taxpayer Service Center
(207) 626-8475
(207) 287-5855
Audit
(207) 822-0450
(207) 822-0453
Central Registration
(207) 621-5129
(207) 287-3733
division.uctax@maine.gov
Collections & Compliance
(207) 624-9595
(207) 287-6627
compliance.tax@maine.gov
Corporate Tax
(207) 624-9670
(207) 624-9694
corporate.tax@maine.gov
E-file Help Desk (1040 ONLY)
(207) 624-9730
(207) 287-6628
efile.helpdesk@maine.gov
Electronic Funds Transfer
(207) 624-5625
(207) 287-6975
efunds.transfer@maine.gov
Estate & Fiduciary Income Tax
(207) 626-8480
(207) 624-9694
estatetax@maine.gov
Fuel Tax
(207) 624-9609
(207) 287-6628
fuel.tax@maine.gov
Forms Request Line
(207) 624-7894
Individual Income Tax Assistance
(207) 626-8475
(207) 624-9694
income.tax@maine.gov
Insurance Premium Tax
(207) 624-9753
(207) 624-9694
Payment Plan/Income Tax
(207) 621-4300
(207) 621-4328
compliance.tax@maine.gov
Payment Plan/Other
(207) 624-9595
(207) 287-6627
compliance.tax@maine.gov
Practitioners’ Hotline
(207) 626-8458
(207) 624-9694
Property Tax
(207) 624-5600
(207) 287-6396
prop.tax@maine.gov
Public Communications
(207) 626-8478
(207) 624-9694
Sales Tax
(207) 624-9693
(207) 287-6628
sales.tax@maine.gov
Tax Clearance Letters
(207) 624-9628
(207) 287-6627
Office of Tax Policy
(207) 624-9789
(207) 287-3618
Taxpayer Advocate
(207) 624-9649
(207) 287-3618
taxpayer.advocate@maine.gov
NexTalk
1-888-577-6690
Withholding Tax
(207) 626-8475
(207) 624-9694
withholding.tax@maine.gov
Tax Violations Hot Line
(207) 624-9600

This publication is designed to keep taxpayers, tax practitioners and the general public informed of developments, problems, questions and matters of general interest concerning Maine tax law, policy and procedure. The articles in this newsletter are not designed to address complex issues in detail, and they are not a substitute for Maine tax laws and/or regulations

Suggestions for the Tax Alert?

Please contact: Public Communications (207) 626-8478
Maine Revenue Services
24 State House Station
Augusta, Maine 04333-0024