MAINE TAXATION CHANGES FOR 2011
Maine’s Biennial Budget contains several significant tax changes. Here is a brief summary of some of the changes:
1. The Maine estate tax exemption will become $2 million effective 2013.
2. The top income state income tax rate will be 7.95% effective January 1, 2013 (it currently is 8.5%).
3. Maine’s standard deduction amount for a personal exemption will be increased to mirror the federal personal exemption amount, which is projected to be $3,750 for 2012. (Maine’s personal exemption deduction amount has been $2,850 since 2000.)
4. There will be no more Maine alternative minimum tax on individuals or trusts and estates effective 2012.
5. Meals served at retirement facilities will be exempt from state sales tax.
6. There will be a new state income tax credit for property placed in service in Maine during 2011 and 2012.
In addition, the legislature created a new office of the Maine Taxpayer Advocate to assist taxpayers in dealing with Maine Revenue Services and a new Independent Appeals Office to rule on taxpayer appeals.
By Maryellen Sullivan, Attorney
Powers & French, P.A. 209 Main Street, Freeport, Maine 04032; Tel: (207) 865-3135