Bill > LD221

This bill addresses how Maine will handle potential discrepancies between federal and state income tax laws, focusing on two key provisions. First, it requires the Commissioner of Administrative and Financial Services to obtain approval from the Governor before granting any tax payment or filing extensions that could significantly impact the state budget, with the requirement to provide a detailed written report to legislative leadership. Second, the bill establishes a process for the Governor to temporarily adjust Maine's tax filing requirements when federal tax law changes occur before the Legislature has a chance to formally respond. Under this provision, the Governor can direct the tax assessor to make equitable adjustments to tax administration for a specific year, contingent on future legislative action. The Governor must notify legislative leaders of these adjustments and consider the potential budgetary implications and administrative complexity. The bill also provides protections for taxpayers, such as ensuring they will not be subject to penalties or interest if they follow the temporary filing instructions and subsequent legislation differs from those initial instructions. This approach allows for more flexible and responsive tax administration when federal tax laws change unexpectedly.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=221&snum=132