An Act To Amend the Nonresident Income Tax Filing Requirements
Maine Legislature, Session 123, LD 0641
Committee: Taxation
Sponsors: WOODBURY, NASS, CUMMINGS, HOTHAM, LANSLEY, PILON, RECTOR, SAVIELLO, PERRY
Amends: 36 MRSA §5142, 36 MRSA §5220

Legislative Document 
No. 641 
H.P.490 
House of Representatives, February 8, 2007 
An Act To Amend the Nonresident Income Tax Filing Requirements 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WOODBURY of Yarmouth. 
Cosponsored by Senator NASS of York and 
'Il/~ 1I7.1J?u£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: Speaker CUMMINGS of Portland, HOTHAM of Dixfield, LANSLEY of 
Sabattus, PILON of Saco, PlOTT I of Unity, RECTOR of Thomaston, SAVIELLO of Wilton, 
Senator: PERRY of Penobscot. 
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Be iilenacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §5142, sub-§8-A, as enacted by PL 2005, c. 332, §22 and as 
affected by §30, is repealed. 
Sec. 2. 36 MRSA §5142, sub-§8-B is enacted to read: 
8:i.B. 
Minimum taxability threshold. 
nonresidents are as follows. 
Minimum taxability thresholds for 
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 
is present in the State performing personal services for more than 45 days during that 
taxable year. 
B. Performance of the following personal services for any number of days during a 
taxable year may not be counted towards the 45-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; 
(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.:. 
Sec. 3. 36 MRSA §5220, suh-§2, as amended by PL 2005, c. 332, §23, is further 
amended to read: 
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 compensation for personal services performed in 
Maine that is excluded from Maine adjusted gross income by the threshold contained in 
section 5142, subsection &-A 8-8 is not subject to taxation under this Pal1 and need not 
1 
file a return; 
Sec. 4. Application. This Act applies to tax years beginning on or after January I, 
2007. 
SUMMARY 
This bill amends the minimum taxability threshold for nonresidents by increasing 
from 10 to 45 the number of days a nonresident must be performing personal services in 
Maine before the compensation is considered Maine-source income. This bill also 
Page I - 123LR2291(Ol)-1 
I 
establishes a number of personal services that, when performed in Maine, do not count 
towards the 45-day threshold.