Taxation committee tables tax haven legislation awaiting amendment

The Joint Standing Committee on Taxation voted to table LD 428, An Act to Prevent Tax Haven Abuse, at the request of the bill’s sponsor, Rep. Denise Teppler (D-Topsham). Rep. Teppler addressed the committee, asking for a week or so delay in working the bill until she finalizes the amendment with “interested parties.”

LD 428 is a carryover bill that the Maine State Chamber testified in opposition to last session. The original bill requires corporations that file unitary income tax returns in Maine to include income from certain jurisdictions from outside the U.S. in net income when apportioning among tax jurisdictions. The bill would have established a “blacklist” of countries that are considered tax havens.
 
According to Rep. Teppler, the amendment would eliminate language that black-listed certain countries. Instead, she said that the amendment would direct Maine Revenue Services (MRS) to develop policy that switches Maine to worldwide combined reporting with a water’s-edge elective. The amendment would require MRS to report back to the Taxation committee next session with language to accomplish that. Rep. Teppler said that the amendment is based in part upon legislation at the federal level. 
 
The sponsor indicated that her amendment would be in part based on draft legislation Sen. Angus King is proposing at the federal level and policy established in the State of California. The committee is expected to delay the next work session for one week. 
 
If you have any questions, please contact Linda Caprara by calling (207) 623-4568, ext. 106, or by emailing lcaprara@mainechamber.org.