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An Act To Increase the Income Tax Surcharge Threshold Imposed on Households
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5111, sub-§6, ¶A, as enacted by IB 2015, c. 4, §2, is amended to read:
 
A. For tax years beginning on or after January 1,in 2017, in addition to any other tax imposed by this chapter, a tax at the rate of 3% is imposed on that portion of the taxpayer's Maine taxable income in excess of $200,000.
Sec. 2.  36 MRSA §5111, sub-§6, ¶A-1  is enacted to read:
 
A-1.  For tax years beginning on or after January 1, 2018, in addition to any other tax imposed by this chapter, a tax at the rate of 3% is imposed on that portion of the taxpayer's Maine taxable income in excess of:
 
(1) For single individuals and married persons filing separate returns, $200,000;
 
(2) For unmarried individuals or legally separated individuals who qualify as heads of households, $300,000; and
 
(3) For individuals filing married joint returns or surviving spouses permitted to file a joint return, $400,000.
 
SUMMARY
This bill amends the 3% surcharge imposed on individual taxable income over $200,000 to increase the threshold, for tax years beginning after 2017, to $300,000 for taxpayers filing as heads of households and to $400,000 for taxpayers filing married joint returns or surviving spouses permitted to file a joint return. Single individuals and married persons filing separate returns are still subject to the surcharge on taxable income over $200,000.