129th MAINE LEGISLATURE FIRST REGULAR SESSION-2019

Legislative Document No. 1019 S.P. 298 In Senate, February 28, 2019

An Act To Eliminate the Double Taxation of Out-of-state Pensions

Reference to the Committee on Taxation suggested and ordered printed.

DAREK M. GRANT Secretary of the Senate

Presented by Senator KEIM of Oxford. Cosponsored by Senators: BREEN of Cumberland, FOLEY of York, LUCHINI of Hancock, MILLETT of Cumberland, VITELLI of Sagadahoc.

Printed on recycled paper 1 Be it enacted by the People of the State of Maine as follows:

2 Sec. 1. 36 MRSA §5122, sub-§2, ¶QQ is enacted to read: 3 QQ. For tax years beginning on or after January 1, 2019, to the extent included in 4 federal adjusted gross income, an amount equal to the amount of the taxpayer's 5 contribution to an employee retirement plan or an individual retirement account, as 6 those terms are defined in paragraph M-2, upon which income taxes have been paid 7 to another jurisdiction. This paragraph does not apply to amounts deducted under 8 paragraph M-2. For purposes of this paragraph, "another jurisdiction" means another 9 state or territory of the United States, a political subdivision of such a state or 10 territory and the District of Columbia.

11 SUMMARY 12 This bill eliminates double taxation of certain employee contributions to retirement 13 benefit plans made in other states by exempting from Maine income tax the portion of 14 retirement benefits attributable to the taxpayer’s contribution to an employee retirement 15 plan or an individual retirement account that was taxed by another jurisdiction if those 16 benefits are included in federal adjusted gross income.

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