An Act To Facilitate Rapid Response by Out-of-state Businesses to State Disasters
Maine Legislature, Session 125, LD 1836
Committee Amendment CA_A_H868 (House)
Amends: 36 MRSA §1760, 36 MRSA §5102, 36 MRSA §5142

COMMITTEE AMENDMENT "A" to H.P. 1357, L.D. 1836, Bill, "An Act To 
Facilitate Rapid Response by Out-of-state Businesses to State Disasters" 
Amend the bill in section 1 in §990 1 by striking out all of the 2nd and 3rd indented 
paragraphs and inserting the following: 
'The Legislature further finds that. while these businesses are operating in the State 
providing assistance on a temporary basis solely for the purpose of helping the State 
recover from the disaster or emergency, these businesses and their employees should not 
be burdened by requirements for certain business and employee taxes as a result of such 
temporary activities. 
To ensure that these businesses focus on responding quickly to the needs of the State 
and its citizens during a declared state disaster or emergency, the Legislature finds that it 
is appropriate to consider that such activity for a reasonable period of time during and 
after the disaster or emergency undertaken to repair and restore property and 
infrastructure in the State does not establish presence or residency in the State or 
constitute doing business in the State for purposes of subj ecting the businesses to certain 
taxes or licensing and regulatory requirements.' 
Amend the bill in section 1 in §9902 in subsection 5 in the 3rd and 4th lines (page 3, 
lines 7 and 8 in L.D.) by striking out the following: "neither a resident of this State nor 
had a nexus in the State" and inserting the following: 'not a resident of this State' 
Amend the bill in section 1 by striking out all of §9903 and inserting the following: 
'§9903. Status or out-or-state businesses and employees during disaster period 
1. Out-or-state businesses. Notwithstanding any other provision of law to the 
contrary, during a disaster period an out-of-state business that conducts operations within 
the State for the purpose of performing work or providing services related to a declared 
state disaster or emergency is deemed to have not established a level of presence that 
would require that business or its out-of-state employees to be subject to any of the 
following state or local employment, licensing or registration requirements: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. l357, L.D. 1836 
A. Business licensing or registration requirements; 
B. Unemployment insurance, taxes or fees or workers' compensation insurance taxes 
or fees; and 
C. Occupational licensing fees. 
2. Status after disaster period. After the termination of a disaster period, an out-of-
state business or out-of-state employee that remains in the State is fully subject to the 
state or local employment, licensing or registration requirements listed in subsection 1 or 
that were otherwise suspended under this chapter during the disaster period.' 
Amend the bill in section 1 in §9904 in subsection 3 in the last 2 lines (page 4, lines 
and 25 in L.D.) by striking out the following: "establishing a business presence in the 
State" and inserting the following: 'any business presence or activity in the State' 
Amend the bill in section 1 in §9905 in the indented paragraph in the first 2 lines 
(page 4, lines 27 and 28 in L.D) by striking out the following: 
"the Department of 
Administrative and Financial Services, Bureau of Revenue Services," 
Amend the bill in section 1 in §9905 in the indented paragraph in the 4th line from 
the end (page 4, line 31 in L.D.) by striking out the following: "shall" and inserting the 
following: 'may' 
Amend the bill by inserting after section 1 the following: 
'Sec. 2. 36 MRSA §1760, sub-§45, ,A-3, as amended by PL 2011, c. 380, Pt. 
GGGG, §2, is further amended to read: 
A-3. If the property is an aircraft not exempted under subsection 88 or 88-A and the 
owner at the time of purchase was a resident of another state or tax jurisdiction and 
the aircraft is present in this State not more than 20 days during the 12 months 
following its purchase, exclusive of days during which the aircraft is in this State for 
the purpose of undergoing "major alterations," "major repairs" or "preventive 
maintenance" as those terms are described in 14 Code of Federal Regulations, 
Appendix A to Part 43, as in effect on January 1, 2005. For the purposes of this 
paragraph, the location of an aircraft on the ground in the State at any time during a 
day is considered presence in the State for that entire day, and a day must be 
disregarded if at any time during that day the aircraft is used to provide free 
emergency or compassionate air transportation arranged by an incorporated nonprofit 
organization providing free air transportation in private aircraft by volunteer pilots so 
children and adults may access life-saving medical care; at' 
Sec. 3. 36 MRSA §1760, sub-§45, 'A-4 is enacted to read: 
A-4. If the property is brought into this State solely to conduct activities directly 
related to a declared state disaster or emergency, at the request of the State, a county, 
city, town or political subdivsion of the State or a registered business, the property is 
owned by a person not otherwise required to register as a seller under section 1754-B 
and the property is present in this State only during a disaster period. As used in this 
paragraph, "declared state disaster or emergency" has the same meaning as in Title 
10, section 9902, subsection 1 and "disaster period" means the period of 60 days that 
begins with the date of the Governor's proclamation of a state of emergency or the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"R"to H.P. 1357, L.D. 1836 
declaration by the President of the United States of a maJor disaster or maJor 
emergency, whichever occurs first; or 
Sec. 4. 36 MRSA §5102, sub-§§6-B and 6-C are enacted to read: 
6-B. Declared state disaster or emergency. "Declared state disaster or emergency" 
has the same meaning as in Title 10, section 9902, subsection 1. 
6-C. Disaster period. "Disaster period" means the period of 60 days that begins 
with the date of the Governor's proclamation of a state of emergency or the declaration by 
the President of the United States of a major disaster or major emergency, whichever 
occurs first. 
Sec. 5. 36 MRSA §5142, sub-§8-B, as enacted by PL 2011, c. 380, Pt. CCCC, §2 
and affected by §4, is amended to read: 
8-B. Minimum taxability threshold; exemptions. Minimum taxability thresholds 
for nonresidents are governed by this subsection. 
A. Ceffil3essaties Except as provided by paragraph D, compensation for personal 
services perfonned 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 perfonning 
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 Except as provided by paragraph D, 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. Perfonnance 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 perfonned 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 perfonned 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 perfonned as part of a project team working on the 
attraction or implementation of new investment in a facility based in the State. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to H.P. 1357,L.D. 1836 
D. Compensation for personal services performed in the State as an employee and 
income derived from or effectively connected with a trade or business in the State is 
not Maine-source income subject to taxation under this Part if the nonresident 
taxpayer is present in the State during the taxable year solely for the performance of 
services or the conducting of business during a disaster period and the compensation 
or income is directly related to a declared state disaster or emergency and the services 
were requested by the State. a county, city, town or political subdivision of the State 
or a registered business. 
Sec. 6. 36 MRSA §S211, sub-§16-B is enacted to read: 
16-B. Sales factor formula for certain disaster period receipts. The sales factor 
must exclude from the numerator sales receipts of a person whose only business activity 
in the State during the taxable year is the performance of services during a disaster period 
that are solely and directly related to a declared state disaster or emergency that were 
requested by the State, a county, city, town or political subdivsion of the State or a 
registered business. 
Sec. 7. Application. Those sections of this Act that enact the Maine Revised 
Statutes, Title 36, section 5102, subsections 6-B and 6-C and Title 36, section 5211, 
subsection 16-B and that amend Title 36, section 5142, subsection 8-B apply to tax years 
beginning on or after January 1,2013.' 
SUMMARY 
This amendment is the majority report of the committee. It removes the blanket 
exemption from all sales and income taxes for businesses and employees of those 
businesses that enter the State during a declared state disaster or emergency. Instead, this 
amendment amends the Maine tax laws to provide for an exclusion from the use tax of 
property brought into the State by an out-of-state business and income earned by an 
employee of an out-of-state business during the disaster period. The amendment also 
provides that rulemaking is not mandatory to implement the provisions and removes the 
Department of Administrative and Financial Services, Bureau of Revenue Services from 
the list of agencies that the Secretary of State consults with prior to adopting rules. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/27/12 Mac. 
LD 1836 
LR 2704(02) 
An Act To Facilitate Rapid Response by Out-of-state Businesses to State Disast:rs 
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Fiscal Note for Bill as Amended by Committee Amendment "A" lM 269.,) 
Committee: Labor, Commerce, Research and Economic Development 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue decrease - General Fund 
Minor cost increase - Other Special Revenue Funds 
Additional costs to the Departments of Economic and Community Development, Professional and Financial 
Regulation, Defense, Veterans and Emergency Management and Secretary of State associated with rulemaking can be 
absorbed within each department's existing budgeted resources. Additional costs to the Department of Secretary of 
State associated with collecting and posting information from out-of-state businesses can also be absorbed within 
existing budgeted resources. 
Any reduction in General Fund revenue associated with business licenses and registrations is expected to be minor, 
not requiring any change to the budget. 
LR2704(02) - Fiscal Note - Page 1 of 1