An Act Regarding the Collection of the Sales and Use Tax by Marketplace Facilitators
Maine Legislature, Session 129, LD 1452
Committee Amendment CA_A_H508 (House)
Amends: 36 MRSA §1752, 36 MRSA §1754-B, 36 MRSA §1759, 36 MRSA §1861-A, 36 MRSA §1951-B, 36 MRSA §1951-C

COMMITTEE AMENDMENT "/J" to H.P. 1064, L.D. 1452, Bill, "An Act 
Regarding the Collection of the Sales and Use Tax by Marketplace Facilitators" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 36 MRSA §1752, sub-§6-E, 6-F and 6-G are enacted to read: 
6-E. 
Marketplace. 
"Marketplace" means a physical or electronic location, 
including. but not limited to, a store, a booth, an Intemet website, a catalog or a dedicated 
sales software application, where tangible personal property or taxable services are 
offered for sale, regardless of whether the marketplace, marketplace facilitator, 
marketplace seller or tangible personal property is physically present in this State. 
6-F. Marketplace facilitator. 
"Marketplace facilitator" means any person that 
facilitates a retail sale by providing a marketplace that lists. advertises, stores, or 
processes orders for tangible personal property or taxable services for sale by marketplace 
sellers and directly. or indirectly through one or more agents, contractors or affiliated 
persons, does any of the following: 
A. Transmits or otherwise communicates an offer by the marketplace seller or an 
acceptance between the customer and marketplace seller; 
B. 
Collects payment from the customer and transmits that payment to the 
marketplace seller; or 
C. Engages in any of the following activities with respect to the marketplace seller's 
products or taxable services: 
(1) Fulfillment or storage services; 
(2) Customer service; or 
(3) Accepting or assisting with returns or exchanges. 
For the purposes of this subsection, "affiliated person" means a person that, with respect 
to another person, has a direct or indirect ownership interest of more than 5% in the other 
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person or is related to the other person because a 3rd person. or group of 3rd persons who 
are affiliated persons. holds a direct or indirect ownership interest of more than 5% in the 
related person. 
A marketplace facilitator does not include a public utility as defined in Title 35-A, section 
102. 
6-G. Marketplace seller. "Marketplace seller" means any person that makes retail 
sales through a marketplace operated by a marketplace facilitator. 
Sec. 2. 36 MRSA §1754-B, sub-§1, as amended by PL 2017, c. 375, Pt. A, §§4 
and 5, is repealed. 
Sec. 3. 36 MRSA §1754-B, sub-§1-A, as amended by PL 2013, c. 546, §10, is 
further amended to read: 
1-A. Persons presumptively required to register. This subsection defines the 
basis for and obligations associated with the rebuttable presumption created by this 
subsection that a seller not registered under subsection + 1-B is engaged in the business of 
selling tangible personal property or taxable services for use in this State and is required 
to register as a retailer with the assessor. 
A. As used in this subsection, unless the context otherwise indicates, the following 
terms have the following meanings. 
(1) "Affiliated person" means a person that is a member of the same controlled 
group of corporations as the seller or any other entity that, notwithstanding its 
form of organization, bears the same ownership relationship to the seller as a 
corporation that is a member of the same controlled group of corporations. For 
purposes of this subparagraph, "controlled group of corporations" has the same 
meaning as in the Code, Section 1563(a). 
(2) "Person" means an individual or entity that qualifies as a person under the 
Code, Section 770l(a)(l). 
(3) 
"Seller" means a person that sells, other than in a casual sale, tangible 
personal property or taxable services. 
B. A seller is presumed to be engaged in the business of selling tangible personal 
property or taxable services for use in this State if an affiliated person has a 
substantial physical presence in this State or if any person, other than a person acting 
in its capacity as a common carrier, that has a substantial physical presence in this 
State: 
(1) Sells a similar line of products as the seller and does so under a business 
name that is the same as or similar to that of the seller; 
(2) 
Maintains an office, distribution facility, warehouse or storage place or 
similar place of business in the State to facilitate the delive1y of property or 
services sold by the seller to the seller's customers; 
(3) Uses trademarks, service marks or trade names in the State that are the same 
as or substantially similar to those used by the seller; 
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(4) Delivers, installs, assembles or performs maintenance services for the seller's 
customers within the State; 
(5) Facilitates the seller's delivery of property to customers in the State by 
allowing the seller's customers to pick up property sold by the seller at an office, 
distribution facility, warehouse, storage place or similar place of business 
maintained by the person in the State; or 
( 6) Conducts any activities in the State that are significantly associated with the 
seller's ability to establish and maintain a market in the State for the seller's sales. 
A seller who meets the requirements of this paragraph shall register with the assessor 
and collect and remit taxes in accordance with the provisions of this Part. A seller 
may rebut the presumption created in this paragraph by demonstrating that the 
person's activities in the State are not significantly associated with the seller's ability 
to establish or maintain a market in this State for the seller's sales. 
C. 
A seller that does not otherwise meet the requirements of paragraph B is 
presumed to be engaged in the business of selling tangible personal property or 
taxable services for use in this State if the seller enters into an agreement with a 
person under which the person, for a commission or other consideration, while within 
this State: 
(1) Directly or indirectly refers potential customers, whether by a link on an 
Internet website, by telemarketing, by an in-person presentation or otherwise, to 
the seller; and 
(2) The cumulative gross receipts from retail sales by the seller to customers in 
the State who are referred to the seller by all persons with this type of an 
agreement with the seller are in excess of $10,000 during the preceding 12 
months. 
A seller who meets the requirements of this paragraph shall register with the assessor 
and collect and remit taxes in accordance with the provisions of this Part. 
A seller may rebut the presumption created in this paragraph by submitting proof that 
the person with whom the seller has an agreement did not engage in any activity 
within the State that was significantly associated with the seller's ability to establish 
or maintain the seller's market in the State during the preceding 12 months. Such 
proof may consist of sworn, written statements from all of the persons within this 
State with whom the seller has an agreement stating that they did not engage in any 
solicitation in the State on behalf of the seller during the preceding 12 months; these 
statements must be prnvided and obtained in good faith. 
A person who enters into an agreement with a seller under this paragraph to refer 
customers by a link on an Internet website is not required to register or collect taxes 
under this Part solely because of the existence of the agreement. 
Sec. 4. 36 MRSA §1754-B, sub-§§1-B and 1-C are enacted to read: 
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1-B. Persons required to register. Except as otherwise provided in this section and 
section 1951-C, the following persons, other than casual sellers, shall register with the 
assessor and collect and remit taxes in accordance with the provisions of this Part: 
A. Every person that has a substantial physical presence in this State and that makes 
sales of tangible personal property or taxable services in this State, including, but not 
limited to: 
(1) 
Every person that makes sales of tangible personal property or taxable 
services, whether or not at retail, that maintains in this State any office, 
manufacturing facility, distribution facility, warehouse or storage facility, sales or 
sample room or other place of business: 
(2) 
Every person that makes sales 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 within 
this State, for retail sales within this State; and 
(3) Every lessor engaged in the leasing of tangible personal property located in 
this State that does not maintain a place of business in this State but makes retail 
sales to purchasers from this State: 
B. Every person that makes sales of tangible personal property or taxable services for 
delivery into this State if: 
(1) The person's gross revenue from delivery of tangible personal property or 
taxable services into this State in the previous calendar year or current calendar 
year exceeds $100,000; or 
(2) The person sold tangible personal property or taxable services for delivery 
into this State in at least 200 separate transactions in the previous calendar year or 
the current calendar year; 
C. Eveiy person that has a substantial physical presence in this State and that makes 
retail sales in this State of tangible personal property or taxable services on behalf of 
a principal that is outside of this State if the principal is not the holder of a valid 
registration certificate: 
D. 
Every agent, representative, salesperson, solicitor or distributor that has a 
substantial physical presence in this State and that receives compensation by reason 
of sales of tangible personal property or taxable services made outside this State by a 
principal for use, storage or other consumption in this State; 
E. Every person that manages or operates in the regular course of business or on a 
casual basis a hotel, rooming house or tourist or trailer camp in this State or that 
collects or receives rents on behalf of a hotel, rooming house or tourist or trailer camp 
in this State; 
F. Every person that operates a transient rental platform and reserves, arranges for, 
offers, furnishes or collects or receives consideration for the rental of living quarters 
in this State; 
G. Every room remarketer; 
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H. Every person that makes retail sales in this State of tangible personal property or 
taxable services on behalf of the owner of that property or the provider of those 
services; 
I. Every person not otherwise required to be registered that sells tangible personal 
property to the State and is required to register as a condition of doing business with 
the State pursuant to Title 5, section 1825-B; 
J. Every person that holds a wine direct shipper license under Title 28-A, section 
1403-A; and 
K. A marketplace facilitator if: 
(1) The marketplace facilitator's gross sales from delivery of tangible personal 
property or taxable services into this State in the previous calendar year or 
current calendar year exceeds $100,000; or 
(2) The marketplace facilitator sold or facilitated sales of tangible personal 
property or taxable services for delivery into this State in at least 200 separate 
transactions in the previous calendar year or the current calendar year. 
For the purposes of this paragraph. the marketplace facilitator's gross sales and total 
number of transactions include sales facilitated on behalf of marketplace sellers and 
any sales of tangible personal property or taxable services made directly by the 
marketplace facilitator. 
1-C. Activities exempt. For purposes of subsection 1-B, the following activities do 
not constitute substantial physical presence in this State: 
A. 
Solicitation of business in this State through catalogs. flyers, telephone or 
electronic media when delivery of ordered goods is effected by the United States mail 
or by an interstate 3rd-party common carrier; 
B. Attending trade shows, seminars or conventions in this State; 
C. Holding a meeting of a corporate board of directors or shareholders or holding a 
company retreat or recreational event in this State; 
D. Maintaining a bank account or banking relationship in this State; or 
E. Using a vendor in this State for printing. 
Sec. 5. 36 MRSA §1759, as amended by PL 2017, c. 375, Pt. H, §1, is further 
amended to read: 
§1759. Bonds 
Either as a condition for issuance or subsequent to the issuance of a registration 
certificate under section 1754-B, or 1756 or 1951 B, the State Tax Assessor may require 
from a taxpayer a bond written by a surety company qualified to do business in this State, 
in an amount and upon conditions to be determined by the assessor. In lieu of a bond the 
assessor may accept a deposit of money or securities in an amount and of a kind 
acceptable to the assessor. The deposit must be delivered to the Treasurer of State, who 
shall safely keep it subject to the instructions of the assessor. 
COMMITTEE AMENDMENT 
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Sec. 6. 36 MRSA §1861-A, as amended by PL 2007, c. 240, Pt. W, §1 and 
affected by §2, is further amended to read: 
§1861-A. Reporting use tax on individual income tax returns 
The assessor shall provide that individuals report use tax on items with a sale price of 
$5,000 or less on their Maine individual income tax returns. Taxpayers are required to 
attest to the amount of their use tax liability for the period of the tax return. 
Alternatively, they may elect to report an amount that is ,08% .04% of their Maine 
adjusted gross income. A taxpayer electing to satisfy a use tax liability by estimating it 
shall calculate the liability in accordance with the use tax table. The estimated liability is 
applicable only to purchases of any individual items each having a sale price no greater 
than $1,000. For each taxable item with a sale price greater than $1,000 but no more than 
$5,000, the actual use tax liability for each purchase must be added to the amount of the 
estimated liability derived from the use tax table. Upon subsequent review, if use tax 
liability for the period of the return exceeds the amount of use tax paid with the return, a 
credit of that amount paid relative to the item or items being supplementarily assessed is 
allowed. Use tax on any item with a sale price of more than $5,000 must be reported in 
accordance with section 1951-A. 
Sec. 7. 36 MRSA §1951-B, as enacted by PL 2017, c. 245, §1 and affected by §2, 
is repealed. 
Sec. 8. 36 MRSA §1951-C is enacted to read: 
§1951-C. Collection of tax by marketplace facilitators and marketplace sellers 
This section governs the collection, reporting and remittance of sales and use tax by 
marketplace facilitators and marketplace sellers. 
1. 
Responsibilities of marketplace facilitator. 
A marketplace facilitator is 
considered a retailer for each sale of tangible personal property or taxable services for 
delivery into this State that the marketplace facilitator facilitates on or through its 
marketplace. 
2. Written statement between marketplace facilitators and marketplace sellers. 
A marketplace facilitator shall provide to a marketplace seller that sells tangible personal 
property or taxable services through the marketplace operated by the marketplace 
facilitator a written statement in which the marketplace facilitator explicitly provides that 
the marketplace facilitator will collect and remit the taxes imposed pursuant to this Part 
on all taxable sales the marketplace facilitator facilitates for the marketplace seller. 
3. Responsibilities of marketplace seller. For sales facilitated by a marketplace 
facilitator, when the marketplace seller has received a written statement from the 
marketplace facilitator that satisfies the requirements of subsection 2: 
A. The marketplace seller shall exclude sales under this section for the purposes of 
determining the registration requirements of the marketplace seller under section 
1754-B, subsection 1-B, paragraph B; 
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B. A marketplace seller required to register under section 1754-B. subsection 1-B, 
paragraph A may not include the receipts from sales under this section in its total of 
taxable sales for purposes of its return filed pursuant to section 1951-A; and 
C. A marketplace seller that holds a registration certificate with the State, when the 
marketplace seller is not required to register under section 1754-B. subsection 1-B. 
paragraph A. may not rep01t sales under this section for purposes of its return filed 
pursuant to section 1951-A. 
4. Room remarketers and transient rental platforms. Subsections 1 to 3 do not 
apply to the rental of living quarters by a room remarketer or through a transient rental 
O 
platform. 
Sec. 9. Application date. This Act applies to sales occurring on or after October 
1, 2019, except that the section of this Act that amends the Maine Revised Statutes, Title 
36, section 1861-A applies to tax years beginnin~ on or after January 1, 2019.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment enacts definitions and other provisions to require a marketplace 
facilitator to collect and remit the sales tax on sales of tangible personal property and 
taxable services facilitated on the marketplace facilitator's marketplace that are delivered 
into the State. It consolidates the sales tax registration provisions by repealing the 
recently enacted Maine Revised Statutes, Title 36, section 1951-B and reformatting the 
provision of law requiring certain persons to register with the State Tax Assessor and 
collect and remit taxes, including the remote seller registration requirements in the new 
provision, harmonizing the merged provisions and removing obsolete language. It also 
adjusts the use tax calculation used on the income tax return to report unpaid use tax, 
lowering the default amount from .08% to .04% of Maine adjusted gross income to 
account for the increased tax collected by remote sellers and marketplace facilitators. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 05/31/19 feac.. 
LD 1452 
LR 449(02) 
An Act Regarding the Collection of the Sales and Use Tax by Marketplace Facilitators 
Fiscal Note for Bill as Amended by Committee Amendment.~( H-s-og) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY2020-21 
Projections 
FY2021-22 
Projections 
FY 2022-23 
($12,410,000) 
($16,620,000) . ($17,084,281) 
($17,944,240) 
$0 
$12,410,000 
$650,000 
$0 
$16,620,000 
$870,000 
$115,719 
$17,200,000 
$910,000 
$115,760 
$18,060,000 
$950,000 
This bill creates a process that ensures marketplace facilitators collect and remit sales tax on sales of property and 
services facilitated on its marketplace and would result in an increase in General Fund revenue of $12,410,000 in 
fiscal year 2019-20 and $16,620,000 in fiscal year 2020-21. It would also result in an increase in Local Government 
Fund revenue of $650,000 in fiscal year 2019-20 and $870,000 in fiscal year 2020-21. The Department of 
Administrative and Financifil Services will require an ongoing General Fund appropriation of $115, 719 for one 
Revenue Agent position beginning in fiscal year 2021-22 when audits of marketplace facilitators will begin. 
LR0449(02) • Fiscal Note • Page 1 of 1