An Act To Amend the Nonresident Income Tax Filing Requirements
Maine Legislature, Session 125, LD 1440
Committee: Taxation
Sponsors: WOODBURY, TRAHAN, BENNETT, BERRY, BICKFORD, FLEMINGS, HARMON, KNIGHT, PILON
Amends: 36 MRSA §5142, 36 MRSA §5220

Legislative Document 
No. 1440 
S.P. 446 
In Senate, April 12, 2011 
An Act To Amend the Nonresident Income Tax Filing Requirements 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Taxation suggested and ordered printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator WOODBURY of Cumberland. 
Cosponsored by Senator: TRAHAN of Lincoln, Representatives: BENNETT of Kennebunk, 
BERRY of Bowdoinham, BICKFORD of Auburn, FLEMINGS of Bar Harbor, HARMON of 
Palermo, KNIGHT of Livermore Falls, PILON of Saco. 
Be it enacted 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 
affected by §30, is repealed. 
Sec. 2.  36 MRSA §5142, sub-§8-B is enacted to read: 
8-B.  Minimum taxability threshold; exemptions.  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 is 
present in the State performing personal services for more than 12 days during that 
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 toward 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 facility, affiliate or 
subsidiary based in the State by a representative from a company, not 
headquartered in the State, that owns that facility or is the parent company of the 
affiliate or subsidiary; 
(3)  Personal services performed in connection with research and development at 
a facility based in the State or in connection with the installation of new or 
upgraded equipment or systems at that facility; or 
(4)  Personal services performed as part of a project team working on the 
attraction or implementation of new investment in a facility based in the State. 
Sec. 3.  36 MRSA §5220, sub-§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 8-A 8-B is not subject to taxation under this Part and need not 
file a return; 
Sec. 4.  Application.  This Act applies to tax years beginning on or after January 1, 
2011. 
SUMMARY 
This bill 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 bill also excludes from the determination of 
taxability in the State up to 24 days of personal services related to certain training, 
management functions, equipment upgrades and new investment.