An Act To Change Nonresident Income Tax Filing Requirements
Maine Legislature, Session 122, LD 0236
Committee Amendment CA_A_H530 (House)
Amends: 36 MRSA §5220

COMMITTEE AMENDMENT " 4" to H. P . 175, L.D. 236, Bill, 
Act To Change Nonresident Income Tax Filing Requirements" 
"An 
Amend 
the 
bill 
in 
section 
by 
striking out 
all 
of 
subsection 8 (page 1, lines 7 to 25 in L.n) and inserting in its 
place the following: 
'8. 
Minimum 
taxability 
threshold. 
Minimum 
taxability 
thresholds for nonresidents are governed by the following. 
A. 
Compensation for personal services performed in the 
State as an employee is Maine-source income, 
subject to 
taxation under this Part, if the nonresident taxpayer was 
present in Maine performing personal services for more than 
days 
during the 
taxable year 
and directly earns or 
derives more than $3,000 in gross income during the year in 
the State from all sources. 
B. 
A nonresident individual who is present for business in 
the State on other than a 
systematic or regular basis, 
either 
directly 
or 
through 
agents 
or 
employees, 
has 
Maine-source income derived from or effectively connected 
with a trade or business in Maine and subject to taxation 
under this Part only if the nonresident individual earns or 
derives more than $3,000 of gross income during the taxable 
year from contractual or sales-related activities. 
C. 
Performance of the following personal services for 24 
days during a calendar year may not be counted towards the 
12-day threshold under paragraph A: 
Page l-LR1416(2) 
COMMITTEE AMENDMENT 
~fO· 
.. ts· 
~., 
COMMITTEE AMENDMENT .. A 
.. to H.P. 175, L.D. 236 
(1) 
Personal 
services performed in connection with 
presenting or receiving employment-related training or 
education; and 
( 2) 
Personal services performed in connection with a 
site inspection. review. analysis of management or any 
other 
superv~s~on 
of 
a 
Maine-based 
affiliate 
or 
subsidiary by a representative from a parent company 
not headquartered in this State.' 
Further amend the amendment by striking out all of section 2 
and inserting in its place the following: 
'Sec. 2. 36 MRSA §5220, sub-§2, as amended by PL 2003, c. 673, 
Pt. E, §2 and affected by §3, is further amended to read: 
2. 
Nonresident individual.s. 
Every nonresident individual 
who, pursuant to this Part, has a Maine individual income tax 
liability 
for 
the 
taxable 
year. 
An 
individual 
whose 
only 
Maine-source 
income 
is 
eeFllf'el:l.sa~iel:l.--4G-F---fM*"-6~---&eF-.... i-ees 
~e!'~eF-FIIee--i-n--Mai-:ae--t-hat--is excluded from Maine adjusted gross 
income by the threshold contained in section 5142, subsection 8 
is not subject to taxation under this Part and need not file a 
return; 
Sec. 3. Application. 
Those sections of this Act that repeal 
and replace the Maine Revised Statutes, Title 36, section 5142, 
subsection 8 and amend Title 36, section 5220, subsection 2 apply 
to tax years beginning on or after January 1, 2005.' 
SUMMARY 
This amendment provides new minimum taxability thresholds 
for 
nonresidents. 
The 
new 
thresholds 
permit 
greater 
income-earning activity by nonresidents in the State before Maine 
income tax liability is triggered. 
The amendment also excludes 
from the determination of taxability in the State up to 24 days 
of personal services related to certain training and management 
functions. 
FJSCAL NOTE REQYJRED 
(See At1acbcdj 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Approved: 04/25/05 ~ac 
LD236 
LR 1416(02) 
An Act To Change Nonresident Income Tax Filing Requirements 
Fiscal Note for Bill as Amended by Committee Amendment 'A" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
2006-07 
$1,921,725 
$1,921,725 
Projections 
2007-08 
$1,919,700 
Projections 
2008-09 
$1,919,700 
Other Special Revenue Funds 
($1,921,725) 
($103,275) 
($1,921,725) 
($103,275) 
($1,919,700) 
($105,300) 
($1,919,700) 
($105,300) 
Fiscal Detail and Notes 
This bill is expected to reduce General Fund revenue by $1,921,725 in fiscal year 2005-06 and in fiscal year 2006-07 
as a result of the changes in nonresident income tax provisions. 
LR1416(2) - Fiscal Note - Page 1 of 1