Require the Collection of Sales Tax by any Business Making Sales to Persons in Maine

Last updated: Jul 12, 2013

Details about this bill
Category: Taxation
Status: Passed
Sponsor: Representative Gary Knight, House 81
Session: 126
Bill #: LD 346

Position:

Support.

This is a RAM initiative and our recommended e-fairness language.

UPDATE 6/5/13: Governor LePage has signed the bill into law. It will take effect 90 days post-adjournment.

UPDATE 6/2/13: The bill has made its way through both the House and Senate and will be sent to the Governor for his action.

UPDATE 5/27/13: The bill passed the House, but in the Senate, the bill was amended to include a study of the SSUTA by OFPR instead of MRS. It is expected that this amendment will be accepted by the House this week and head to the Governor for his signature. Stay posted!

UPDATE 5/16/13: The committee reviewed the final amended language. We expect the bill to hit the floor soon.

UPDATE 3/25/13: The Committee voted unanimously to support this bill. It now moves to the House for a vote.

 

 

Summary:

This bill creates a presumption that a seller of goods or services is engaged in business in this State and therefore required to register with the State Tax Assessor as a retailer and collect and remit sales and use tax on purchases made by persons in the State, if a person affiliated with the seller has a substantial presence in the State or a person who has a substantial presence in the State engages in certain activities, such as selling a line of products similar to that of the seller or maintaining an office or distribution center in the State to facilitate the delivery of the seller's products. Alternatively, a seller is presumed to be required to register with the State and collect and remit sales and use tax if the seller has an agreement with a person to refer potential customers to the seller and the seller generates more than $10,000 in sales in the State annually. Both presumptions may be rebutted. This bill also requires any agreement or ruling by the Governor or an executive branch department or agency that allows a seller to avoid registering as a seller to be approved by both Houses of the Legislature.