An Act To
Maine Legislature, Session 123, LD 0641
Committee Amendment CA_A_H602 (House)

COMMITTEE AMENDMENT" A" to H.P. 490, L.D. 641, Bill, "An Act To 
Amend the Nonresident Income Tax Filing Requirements" 
II 
Amend the bill in section 2 by striking out all of subsection 8-B (page I, lines 5 to 23 
in L.D.) and inserting the following: 
'8-B. 
Minimum taxability threshold. 
Minimum taxability thresholds for 
nonresidents are governed by this subsection. 
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 the State performing personal services for more than 12 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 the State and subject to taxation under this Part only if the nonresident individual 
was present in the State for business more than 12 days during the taxable year and 
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: 
(1) 
Personal services performed in connection with presenting or receiving 
employment-related training or education; 
(2) Personal services performed in connection with a site inspection, review, 
analysis of management or any other supervision of a Maine-based affiliate or 
subsidiary by a representative from a parent company not headquartered in this 
State; 
COMMITTEE AMENDMENT 
" 
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COMMITTEE AMENDMENT -A "to H.P. 490, L.D. 641 
(3) Personal services performed in connection with research and development at 
a Maine-based facility or connected with installation of new or upgraded 
equipment or systems; or 
(4) Personal services performed as part of a project team working on attraction 
or implementation of new investment in a Maine-based facility.' 
Amend the bill in section 3 by striking out all of subsection 2 (page 1, lines 26 to 31 
in L.D.) and inserting the following: 
'2. Nonresident individuals. 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 eomfleRsatioR for flersoRal services flerformea iR 
MaiRe that is excluded from Maine adjusted gross income by the threshold contained in 
section 5142, subsection 8-A 8-B is not subject to taxation under this Part and need not 
file a return;' 
Amend the bill by inserting after section 4 the following: 
'Sec. 5. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Provides funds for the administrative costs associated with increasing the 
minimum taxability threshold, including funds for one Revenue Agent position and one 
Tax Examiner position effective January 1, 2008. 
GENERAL FUND 
2007-08 
2008-09 
POSITIONS - LEGISLATIVE COUNT 
2.000 
2.000 
Personal Services 
$57,802 
$121,803 
All Other 
$23,642 
$19,515 
GENERAL FUND TOTAL 
$81,444 
$141,318 
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 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A " 
to H.P. 490, L.D. 641 
certain training, management functions, equipment upgrade and new investment. The 
amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/15/07 
~ac:.. 
LD 641 
LR 2291(02) 
An Act To Amend the Nonresident Income Tax Filing Requirements 
Fiscal Note for Bill as Amended by Committee Amendment "A" 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$3,187,046 
$81,444 
($3,105,602) 
($166,898) 
2008-09 
$2,606,986 
$141,318 
($2,465,668) 
($132,507) 
Projections 
2009-10 
$2,684,371 
$147,409 
($2,536,962) 
($139,158) 
Projections 
2010-11 
$2,766,875 
$153,804 
($2,613,071) 
($143,333) 
Changing the minimum taxability threshold for nonresidents will reduce General Fund revenue by an estimated 
$3, I 05,602 in fiscal year 2007-08 and $2,465,668 in fiscal year 2008-09. This bill also includes a General Fund 
appropriation of $8 I ,444 in fiscal year 2007-08 and $141,318 in fiscal year 2008-09 for Maine Revenue Services' 
administrative costs. 
LR2291(02) - Fiscal Note - Page 1 of I