An Act To Ensure Fairness for Maine Businesses
Maine Legislature, Session 123, LD 1006
Committee: Taxation
Sponsors: WESTON, NASS, SHERMAN, STRIMLING
Amends: 5 MRSA §1831, 36 MRSA §1754-B

Legislative Document 
No. 1006 
S.P.323 
March 2, 2007 
An Act To Ensure Fairness for Maine Businesses 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator WESTON of Waldo. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: NASS of York, SHERMAN of Aroostook, STRIMLING of 
Cumberland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRS A §1811-B is enacted to read: 
§1811-B. Condition of doing business with the State 
Notwithstanding any provision of law to the contrary, the Department of 
Administrative and Financial Services, through the Bureau of General Services, shall 
ensure that an entity from whom a purchase of services, supplies, materials or equipment 
for State Government or any department or agency of State Government is made is 
registered as a seller pursuant to Title 36, section 1754-B. If the seller is located outside 
of this State, the seller, as a condition of doing business with the State, must register with 
the State Tax Assessor and collect and remit taxes in accordance with Title 36, Part 3. 
The State is prohibited from doing business with an entity that refuses to register as a 
seller and collect and remit taxes pursuant to Title 36, section 1754-B. 
Sec. 2. 5 MRSA §1831, sub-§2, as amended by PL 1989, c. 165, §2, is further 
amended to read: 
2. 
Limitation. 
This section does not apply to purchase of supplies, services, 
materials and equipment, except for the requirements of section 1811-B, or to public 
improvements, as described under chapters 153 and 155. This section does not apply to 
construction, improvement or repair of any and all ways, roads or bridges with 
appurtenances or other public improvements wJ:H€h that by law are under the supervision 
of the Department of Transportation in accordance with section 1741. 
Sec. 3. 36 MRSA §1754-B, sub-§l, ~G, as amended by PL 2005, c. 218, §20, is 
further amended to read: 
G. 
Every seller of tangible personal property or taxable services that has a 
substantial physical presence in this State sufficient to satisfy the requirements of the 
due process and commerce clauses of the United States Constitution. The following 
activities do not constitute a substantial physical presence for the purpose of this 
paragraph: 
(1) Solicitation of business in this State through catalogs, flyers, telephone or 
electronic media when delivery of ordered goods is effected by the United States 
mail or by an interstate 3rd-party common carrier; 
(2) Attending trade shows, seminars or conventions in this State; 
(3) Holding a meeting of a corporate board of directors or shareholders or 
holding a company retreat or recreational event in this State; 
(4) Maintaining a bank account or banking relationship in this State; or 
(5) Using a vendor in this State for printing, drop shipping or telemarketing 
services; aHd 
Sec. 4. 36 MRS A §1754-B, sub-§l,~, as enacted by PL 2005, c. 218, §21, is 
amended to read: 
Page I - 123LR1976(Ol)-1 
I 
H. 
Every person that makes retail sales in this State of tangible personal property or 
taxable services on behalf of the owner of that property or the provider of those 
services~; and 
Sec. 5. 36 MRSA §1754-B, sub-§l,,. is enacted to read: 
I. Every person that sells tangible personal property or taxable services to the State 
and that is required to do so as a condition of doing business with the State pursuant 
to Title 5, section 1811-B or section 1831, subsection 2. 
SUMMARY 
This bill requires a person selling supplies, services, materials and equipment to the 
State to register with the State Tax Assessor as a seller and collect and remit sales tax as a 
II 
condition of doing business with the State. The State is prohibited from doing business 
with an entity that fails to comply with this requirement.