An Act To Provide a Sales Tax Exemption to Commercial Horticulturists
Maine Legislature, Session 125, LD 0234
Committee Amendment CA_B-SA_A_S593 (Senate)
Amends: 36 MRSA §1754-B

SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "B" to H.P. 187, 
L.D. 234, Bill, "An Act To Provide a Sales Tax Exemption to Commercial 
Horticulturists" 
Amend the amendment by striking out everything after the title and before the 
summary and inserting the following: 
'Amend the bill by striking out the title and substituting the following: 
'An Act To Require Retailers with an Affiliate Nexus To Collect Sales Tax' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §1754-B, sub-§l, ~, as enacted by PL 1995, c. 640, §3, is 
repealed and the following enacted in its place: 
B. 
Every seller of tangible personal property or taxable services that does not 
maintain a place of business in this State but makes retail sales in this State or solicits 
orders, by means of one or more salespeople, independent contractors, representatives 
or affiliates within this State, for retail sales within this State. 
(1) A seller is presumed to be soliciting business through a salesperson, 
independent contractor, representative or affiliate if the seller enters into an 
agreement with a resident of this State under which the resident, for a 
commission or other consideration, directly or indirectly refers potential 
customers, whether by a link on a website or otherwise, to the seller and the 
cumulative gross receipts from sales by the seller to customers in the State who 
are referred to the seller by all residents of the State with this type of agreement 
with the seller exceed $10,000 during the preceding 4 quarterly filing periods 
ending on the last day of March. June, September and December. 
(2) A seller may rebut the presumption under subparagraph (1) by demonstrating 
that the resident of this State with whom the seller has an agreement did not 
engage in any solicitation in the State on behalf of the seller that would satisfy 
the nexus requirement under the United States Constitution during the preceding 
quarterly filing periods; 
SENATE AMENDMENT 
". 
~~. 
SENATE AMENDMENT" A" to COMMITTEE AMENDMENT "B" to H.P. 187, L.D. 234 
Sec. 2. 36 MRSA §1754-B, sub-§4 is enacted to read: 
4. Related transactions before October 1, 2012. For sales tax periods beginning 
before October 1, 2012, the State Tax Assessor may not determine a tax or related interest 
or penalty required to be collected for retail sales described under subsection 1, paragraph 
B against a person who on October 1, 2012 is presumed to be a seller under subsection 1, 
paragraph B, subparagraph (1) if that person is registered under this section on October 1, 
2012 and was not required to be registered under any other provision of this section at the 
time of the transaction. 
Sec. 3. Effective date. This Act takes effect October 1,2012.' , 
SUMMARY 
This amendment strikes the bill and Committee Amendment "B" and requires a retail 
seller that does not maintain a place of business in the State but makes retail sales or 
solicits orders through salespeople, independent contractors, representatives or affiliates 
that exceed a minimum threshold to register with the State Tax Assessor and collect sales 
tax. The amendment establishes a presumption that a seller is soliciting business through 
a salesperson, independent contractor, representative or affiliate if that seller enters into 
an agreement with a resident of the State under which the resident, for a commission or 
other consideration, directly or indirectly refers potential customers, whether by a link on 
a website or otherwise, to the seller, if the cumulative gross receipts from sales by the 
seller to customers in the State who are referred to the seller by all residents with this type 
of agreement with the seller exceed $10,000 during the preceding 4 quarterly filing 
periods. The amendment permits a seller to rebut the presumption that the seller is 
required to register and collect taxes by demonstrating the resident with whom the seller 
has an agreement did not engage in solicitation during the preceding 4 quarterly filing 
periods. It prohibits the State Tax Assessor from collecting taxes from a seller with a 
presumed nexus for periods before October 1, 2012 if the seller registers and begins to 
collect tax by that date. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSOREDB(, ~ 
(Senator ROSEN, R.) 
COUNTY: Hancock 
SENATE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Approved: 05/16112 
~ac 
LD234 
LR 633(06) 
An Act To Provide a Sales Tax Exemption to Commercial Horticulturists 
Fiscal Note for Senate Amendment "A" to Committee Amendment "B" 5 -SCJ.3 
Sponsor: Sen. Rosen of Hancock 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
$0 
($9,500) 
Projections 
FY 2013-14 
($9,785) 
Projections 
FY 2014-15 
($10,079) 
Other Special Revenue Funds 
$0 
$0 
$9,500 
$500 
$9,785 
$515 
$10,079 
$530 
Fiscal Detail and Notes 
The amendment eliminates the proposed sales tax exemption for certain products used in commercial agriculture that 
decreases sales tax receipts to the General Fund by $9,500 in FY 2012-13 and increases revenue sharing. This 
amendment also adds a new provision that would require a retail seller that does not maintain a place of business in 
Maine but makes sales in Maine through affiliates to collect sales taxes. This provision would have a negligible 
impact on sales tax revenue. 
LR0633(06) - Fiscal Note - Page 1 of 1