An Act To Increase the Collection of Sales and Use Tax
Maine Legislature, Session 125, LD 0469
Committee: Taxation
Sponsors: DILL, BERRY, BRYANT, FLEMINGS, PILON, BLISS
Amends: 36 MRSA §1766

Legislative Document 
No. 469 
H.P. 362 
House of Representatives, February 10, 2011 
An Act To Increase the Collection of Sales and Use Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative DILL of Cape Elizabeth. 
Cosponsored by Representatives: BERRY of Bowdoinham, BRYANT of Windham, 
FLEMINGS of Bar Harbor, PILON of Saco, Senator: BLISS of Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1766 is enacted to read: 
§1766.  Notification and duty to report certain information 
1.  Presumption.  For the purposes of this section, a retailer that does not collect 
sales tax in the State and that is a part of a controlled group of corporations, as defined in 
Section 1563(a) of the Code, that has a component member, as defined in Section 1563(b) 
of the Code, that is a retailer with a physical presence in this State is presumed to be 
doing business in this State. 
2.  Notification at time of purchase.  A retailer doing business in this State that does 
not collect sales tax in this State shall notify purchasers in this State at the time of 
purchase that sales or use tax may be due on certain purchases made from the retailer and 
that the State requires the purchaser to file a sales or use tax return.  Failure to provide the 
notice is a civil violation for which a fine may be assessed in the amount of $5 for each 
such failure. 
3.  Annual notice.  A retailer that does not collect sales tax in this State and that is 
doing business in this State shall provide a notice to each purchaser in this State by 
January 31st annually showing the total amount paid by the purchaser to the retailer for 
purchases delivered into the State in the previous calendar year.  Failure to provide the 
annual notice is a civil violation for which a fine may be assessed in the amount of $10 
for each such failure.  The notice must be provided by first-class mail and include the 
words "Important Tax Document Enclosed" on the exterior of the mailing.  The notice 
must include the following information, if available: 
A.  Dates of and amounts paid for purchases; 
B.  Descriptions of items purchased, including, if known by the retailer, whether a 
purchase is exempt from sales and use tax; and 
C.  A statement that the laws of this State require that a sales or use tax return be filed 
and tax paid on certain purchases made by the purchaser from the retailer. 
4.  Report to bureau.  A retailer that is required to notify purchasers under this 
section shall file with the bureau a statement by March 1st annually showing the 
information provided to each purchaser in the State for which notice is required under 
subsection 3.  Failure to file the statement is a civil violation for which a fine may be 
assessed in the amount of $10 for each purchaser who should have been included in the 
statement. 
Sec. 2.  Application.  This Act applies to sales made on or after November 1, 2011. 
SUMMARY 
This bill requires out-of-state retailers that are not required to collect sales tax and 
that are part of a controlled group of corporations with a connection in the State to notify 
purchasers in the State of the obligation to pay sales or use tax and requires those retailers 
to provide annual statements of purchases to the purchasers and the Department of 
Administrative and Financial Services, Maine Revenue Services.  Fines are provided for 
failure to provide the required notifications and statements.