reglab/statecodes huggingface dataset:
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.08 - DOMICILE

Current through 2024-29, July 17, 2024
The word "domicile" is a common-law (i.e., judge-made law)
				  term that the Maine courts, not the Legislature or Maine Revenue Services, have
				  defined. Under the Maine common law, "domicile" means the place (A) where a
				  person resides, and (B) where that person intends to remain and, whenever
				  absent, intends to return. Thus, according to the Maine courts, domicile has
				  two components: residence and the intent to remain or return, if absent. The
				  intent to move in the future is not sufficient to establish domicile. Once an
				  individual's domicile is established in Maine, it continues here until domicile
				  is established elsewhere. An individual alleging a change in domicile has the
				  burden to show that domicile was established in another state or
				  country.
Where a decedent was domiciled at the date of death is a
				  question of fact in which objective factors exhibiting the decedent's actual
				  location and intent may be relevant. Factors that may be relevant or excluded
				  in determining a decedent's domicile at the date of death include those
				  relevant or excluded in determining income tax domicile (for more information
				  see MRS Rule 807(.03) and (.04) 18-125 C.M.R., ch. 807, as well as the
				  locations of significant relatives or an appointed attorney-in-fact for health
				  care or financial decisions. Where the decedent qualified for financial
				  assistance for health care, where the decedent had a contract for residence or
				  care at a residential living facility, or where the decedent qualified as a
				  statutory resident for income tax purposes may all be factors to be considered
				  in determining domicile.
Maine Revenue Services considers all of an individual's
				  relevant facts and circumstances allowed by Maine law when it determines where
				  that individual is domiciled. Although the individual's intent to remain or
				  return is a factor in determining domicile, an individual's statement as to his
				  or her intent is not necessarily determinative. Evidence of the decedent's
				  intent may be found in many decisions made by that individual. The decedent may
				  have retained the ability to make such decisions and determine his or her
				  domicile even though the decedent was deemed incapable of making, or chose not
				  to make, other decisions. Actions by a person who was responsible for an
				  incapacitated individual's affairs may be considered when determining the
				  decedent's intent to remain. When a guardian has been appointed and chooses the
				  incapacitated individual's place of abode pursuant to authority as a guardian,
				  the intent of the guardian for the individual to remain or return to a
				  particular location becomes a factor in the determination of the incapacitated
				  person's domicile. Evidence of the guardian's intent may be found in relevant
				  statements and actions.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.09 - QUALIFIED TERMINABLE INTEREST AND MAINE ELECTIVE PROPERTY

Current through 2024-29, July 17, 2024
A.
Qualified terminable interest
				property.
On an original timely-filed Maine estate tax return, the
				personal representative of a decedent with a surviving spouse may elect
				treatment for assets that are eligible to be treated as qualified terminable
				interest property ("QTIP") under Code § 2056(b)(7). A Maine QTIP election
				may not be made on an amended Maine estate tax return unless such amended
				return is filed on or before the due date of the original Maine estate tax
				return plus extensions. The allowable Maine QTIP deduction may not be less than
				zero or greater than the amount by which the federal applicable exclusion
				amount under the Code § 2010 exceeds the Maine exclusion amount. For the
				purposes of this subsection, "federal applicable exclusion amount" does not
				include any deceased spousal unused exclusion amount under the Code §
				2010. The Maine QTIP may not include property designated as federal QTIP
				property, nor may it include property included in adjusted taxable gifts. Maine
				QTIP property is tax-deferred for Maine estate tax purposes until the death of
				the surviving spouse.
B.
Maine elective property.
If a decedent was predeceased by a spouse
				whose estate elected a deduction for a Maine QTIP, the value of the remaining
				property in the Maine QTIP must be included in the value of the estate of the
				surviving spouse as Maine elective property. The value of the Maine elective
				property is measured at the death of the surviving spouse and is added to the
				federal taxable estate of the surviving spouse to calculate the Maine taxable
				estate. If the value of the estate of the surviving spouse is based on the
				alternate valuation date, then the same alternate valuation date is to be used
				for valuation of the Maine elective property. The value of Maine elective
				property is determined by the Assessor in accordance with the Code.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.10 - QUALIFIED DOMESTIC TRUSTS

Current through 2024-29, July 17, 2024
If a federal Form 706-QDT is required, the estate must also
				  file an amended Maine estate tax return, showing the taxable distribution as an
				  increase to the predeceased spouse's estate, and pay any additional tax
				  liability.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.11 - LIABILITY

Current through 2024-29, July 17, 2024
A personal representative, trustee, grantee, donee, or other
				  beneficial recipient of assets of an estate remains personally liable for any
				  Maine estate tax until those taxes are paid. A personal representative may
				  request a discharge of personal liability by filing a Certificate of Discharge
				  of Personal Representative Liability and upon payment of any Maine estate tax
				  due along with filing the Form 706ME, may receive the discharge from liability
				  as to any Maine estate tax subsequently determined to be due. The estate,
				  trustee, grantee, donee, or other beneficial recipient of assets of the estate
				  remains liable for any Maine estate tax subsequently determined to be
				  due.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.12 - LIENS AND LIEN RELEASES

Current through 2024-29, July 17, 2024
Except as otherwise provided by law, an automatic lien for
				  Maine estate tax, interest and penalties attaches to all Maine property (real
				  and personal) owned by a decedent at death. The lien does not attach to any
				  property passing by right of survivorship to a surviving joint tenant who was
				  the decedent's spouse on the decedent's date of death. The lien continues until
				  it is released by the Assessor, except that:
A. The lien is automatically released by
				operation of law when the personal representative of the estate, the trustee of
				a trust or surviving joint tenant of the property, each acting in the capacity
				of a fiduciary of the estate, transfers the property for value as defined
				pursuant to 36 M.R.S., Chapter 577. However, the lien continues to attach to
				any property that is transferred for less than its value or when transferred by
				any other party.
B. The lien is
				automatically released by operation of law ten years after the decedent's date
				of death.
When a personal representative of an estate files a completed
				  Certificate of Discharge of Estate Tax Lien, the Assessor will release the lien
				  upon an initial showing by the estate that all taxes, interest, and penalties
				  have been paid by filing Form 706ME showing any tax due has been paid or
				  submitting Statement 700-SOV representing that no Maine estate tax is
				  due.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 603 - MAINE ESTATE TAX AFTER 2012 › Section 125-603-.13 - APPLICATION DATE

Current through 2024-29, July 17, 2024
This Rule applies to estates of decedents dying on or after
				  January 1, 2013.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-01 - Definitions

Current through 2024-29, July 17, 2024
A.
Affiliated group
. "Affiliated
				group" means a group of 2 or more corporations in which more than 50 percent of
				the voting stock of each member corporation is directly or indirectly owned by
				a common owner or owners, either corporate or non-corporate, or by one or more
				of the member corporations.
				36 M.R.S.
				§5102(1-B).
B.
Costs of performance
. "Costs
				of performance" means direct costs determined in a manner consistent with
				generally accepted accounting principles and in accordance with accepted
				conditions or practices in the trade or business of the taxpayer. In cases when
				it is impossible or impracticable to determine the costs of performance
				attributable to different states, the gross receipts from the performance of
				services attributable to this state are measured by the ratio that the time
				spent in performing the services in this state bears to the total time spent in
				performing the services everywhere. Time spent in performing services includes
				the amount of time expended in the performance of a contract or other
				obligation which gives rise to such gross receipts. Personal service not
				directly connected with the performance of the contract or other obligation,
				such as time expended in negotiating the contract, is excluded from the
				computations.
C.
Domicile
. "Domicile" means the principal place from which the
				business activities of a taxpayer are directed or managed. If it is not
				possible to determine the principal place from which the business activities of
				a taxpayer are directed or managed, the state of the taxpayer's incorporation
				is considered its state of domicile.
D.
Income-producing activity
.
				"Income-producing activity" means, for each separate item of income, the
				transactions and activity directly engaged in by the taxpayer for the ultimate
				purpose of obtaining gain or profit. For apportionment purposes, such activity
				does not include transactions and activities performed on behalf of a taxpayer,
				such as those conducted on the taxpayer's behalf by an independent contractor.
				Income- producing activity includes, but is not limited to:
(1) The rendering of personal services by
				employees or the utilization of tangible and intangible property by the
				taxpayer in performing a service;
(2) The sale, rental, leasing, licensing the
				use of, or other use of real property; and
(3) The rental, leasing, licensing the use
				of, or other use of tangible or intangible personal property.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-02 - Determination of unitary business

Current through 2024-29, July 17, 2024
The activities of a corporation or an affiliated group of
				  corporations constitute a unitary business if those activities are integrated
				  with, dependent upon and contributive to each other and to the operations of
				  the corporation or group as a whole. The presence of any of the following
				  factors creates a strong presumption that the activities of the corporation or
				  group constitute a single trade or business:
A. All activities are in the same general
				line or type of business;
B. The
				activities constitute different steps in a vertically-structured enterprise;
				or
C. The corporation or group is
				characterized by strong centralized management, including but not limited to
				centralized departments for such functions as financing, purchasing,
				advertising and research.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-03 - Apportionment

Current through 2024-29, July 17, 2024
If the business activity of a taxpayer occurs both within and
				  without Maine, and if by reason of such activity the taxpayer is taxable in
				  another state, the portion of the net income (or net loss) derived from sources
				  within Maine is determined by apportionment in accordance with
				  36
				  M.R.S. §§5142(6)
				  and 5210-11 and the provisions of this rule. A corporation or affiliated group
				  of corporations may be engaged in more than one unitary business. In that
				  event, the corporation or affiliated group of corporations must, for each line
				  of business, separately apportion its income using the appropriate Maine
				  apportionment factor. Maine utilizes a "water's edge" combined reporting
				  methodology for determining the apportionable income base. The income subject
				  to apportionment is income required to be reported on the taxpayer's federal
				  income tax return as modified by Maine law. The apportionment factor must only
				  include those amounts attributable to the apportionable income base for that
				  taxable year. Variations may be allowed when petitioned for by the taxpayer or
				  may be required by the assessor.
				  36 M.R.S.
				  §5211(17).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-04 - Taxability in another state

Current through 2024-29, July 17, 2024
A.
In
				general
. A taxpayer's income from business activity is taxable in
				another state if the taxpayer, by reason of such activity, is taxable in that
				state within the meaning of
				36 M.R.S.
				§5211(2).
A taxpayer is taxable in another state if:
(1) By reason of business activity in another
				state, the taxpayer is subject to a net income tax, a franchise tax measured by
				net income, a franchise tax for the privilege of doing business, or a corporate
				stock tax, as described in subsection B below; or
(2) By reason of such activity, the other
				state has jurisdiction to subject the taxpayer to a net income tax, regardless
				of whether the state actually imposes such a tax on the taxpayer, as described
				in subsection D below.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-05 - Consistency

Current through 2024-29, July 17, 2024
A.
Year-to-year consistency
. The
				taxpayer must disclose in its Maine return the nature and extent of any
				inconsistency between that return and its Maine returns for prior years with
				respect to the composition of its unitary business, the classification of
				income, the proration of business and constitutionally-exempt income
				deductions, and the determination of the sales apportionment factor.
B.
State-to-state consistency
.
				If the returns filed by a taxpayer for all states to which the taxpayer reports
				are not uniform in the composition of its unitary business, the classification
				of income, the proration of business and constitutionally-exempt income
				deductions, and the determination of the sales apportionment factor, the
				taxpayer must disclose in its Maine return the nature and extent of each
				variance.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-06 - Sales factor

Current through 2024-29, July 17, 2024
A.
Formula.
The sales factor is a fraction in which the numerator is the total sales
				of the taxpayer in this State during the tax period and the denominator is the
				total sales of the taxpayer everywhere during the tax period, except that:
(1) For tax years beginning on or after
				January 1, 2009, the formula must exclude from both the numerator and the
				denominator sales of tangible personal property delivered or shipped by the
				taxpayer, regardless of F.O.B. point or other conditions of the sale, to a
				purchaser within a state in which the taxpayer is not taxable within the
				meaning of
				36 M.R.S.
				§5211(2) and section
				.04 above.
See
36 M.R.S.
				§5211(14). To avoid
				duplication, intercompany sales between corporations in a unitary business must
				be eliminated from both the numerator and the denominator of the sales
				factor.
(2) For tax years beginning
				on or after January 1, 2010, "total sales of the taxpayer" includes sales of
				the taxpayer and of any member of an affiliated group with which the taxpayer
				conducts a unitary business. The formula must exclude from both the numerator
				and the denominator sales of tangible personal property delivered or shipped by
				the taxpayer, regardless of F.O.B. point or other conditions of the sale, to a
				purchaser within a state in which the taxpayer is not taxable within the
				meaning of
				36 M.R.S.
				§5211(2) and section
				.04 above, unless any member of an affiliated group with which the taxpayer
				conducts a unitary business is taxable in that state in the same manner as a
				taxpayer is taxable under
				36 M.R.S.
				§5211(2) and section
				.04 above.
				36 M.R.S.
				§5211(14). To avoid
				duplication, intercompany sales between corporations in a unitary business must
				be eliminated from both the numerator and the denominator of the sales factor.
				For discussion of return reporting requirements for unitary business returns,
				see MRS Rule 810 (18-125 C.M.R., ch. 810).
(3) For tax years beginning on or after
				January 1, 2013, the numerator of the sales factor does not include sales 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 subdivision of the State or a
				registered business.
				36 M.R.S.
				§5211(16-B).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-07 - Corporate partners

Current through 2024-29, July 17, 2024
A.
Generally
. A corporation with an interest in a pass-through
				entity, such as a partnership, limited partnership, limited liability
				partnership, limited liability company, S corporation, or other similar entity
				must include its distributive share of the pass-through entity income, loss, or
				deduction in calculating its income, in accordance with the
Internal
				Revenue Code
and
				36 M.R.S.
				§5102(8), and must
				apportion its income pursuant to paragraph D below. The character of any item
				included in the distributive share is determined as if it were realized or
				incurred directly by the corporation. The business of the pass-through entity
				is treated as the business of the corporation.
B.
Taxable in Maine
. A
				corporation that is not otherwise subject to Maine's tax jurisdiction is
				nevertheless taxable in Maine if it is a partner, shareholder or member in a
				pass-through entity whose activities, if conducted directly by the corporation,
				would subject the corporation to the Maine corporate income tax.
C.
Taxable in another state
. A
				corporation is taxable in another state within the meaning of section .04 above
				if the corporation is a partner, shareholder or member in a pass-through entity
				with activities in that state that cause the pass-through entity or its
				partner, shareholder or member to be taxable in that state under the rules
				described in section .04 above.
D.
Apportionment rules
. In general, if a corporate partner,
				shareholder or member is taxable in another state, it must apportion its
				taxable net income using the sales factor in
				36 M.R.S.
				§5211(8).
(1)
Sales factor
. In determining
				the denominator of its sales factor, a corporate partner, shareholder or member
				must include its pro rata share of the pass- through entity's total sales
				during the pass-through entity's taxable year. In determining the numerator of
				its sales factor, a corporate partner, shareholder or member must include its
				pro rata share of such sales in Maine. To avoid duplication, however, the
				following sales must be eliminated from both the numerator and denominator of
				the sales factor:
(a) Sales by the
				corporation to the pass-through entity in an amount equal to the total of such
				sales multiplied by the corporation's interest in the pass- through entity;
				and
(b) Sales by the pass-through
				entity to the corporation in an amount not to exceed the total of all sales
				made by the pass-through entity multiplied by the corporation's interest in the
				pass-through entity.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-08 - Variations

Current through 2024-29, July 17, 2024
A.
Special apportionment
				formulas
. A taxpayer may petition for, or the assessor may require, an
				apportionment variation, if the apportionment provided by statute and this rule
				does not fairly represent the extent of the taxpayer's business activity in the
				State. Nothing in this rule precludes the assessor from establishing
				appropriate procedures for determining the correct apportionment, including the
				use of separate accounting, determination of appropriate factors, or any other
				method to effectuate equitable apportionment.
B.
Factors for corporate
				partners
. The property and payroll factors of a special apportionment
				formula for a corporation with an interest in a pass-through entity may be
				proposed using the guidance below.
(1)
Property factor
. In determining the denominator of its property
				factor, a corporate partner, shareholder or member must include its pro rata
				share of the total value of the pass-through entity's real and tangible
				personal property, whether owned or rented, used during the pass-through
				entity's taxable year. In determining the numerator of its property factor, a
				corporate partner, shareholder or member must include its pro rata share of the
				value of such property located in Maine. To avoid duplication, however, the
				following adjustments must be made to the value of any property leased or
				rented by the corporation to the pass- through entity or vice versa.
(a) When a corporation rents property to the
				pass-through entity, the corporation must include the original cost of the
				property in its property factor. The pass-through entity must not include any
				portion of the value of this property in its property factor.
(b) When the pass-through entity rents
				property to the corporation, the corporation must include in its property
				factor the sum of (i) the original cost of the property multiplied by the
				corporation's percentage interest in the pass-through entity, plus (ii) eight
				times the net annual rental rate of the property multiplied by the difference
				between 100% and the corporation's percentage interest in the pass-through
				entity.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-11 - Prorating deductions

Current through 2024-29, July 17, 2024
In some cases, an allowable deduction may relate to both
				  apportionable income and to income that Maine is prohibited from taxing by the
				  laws or Constitution of the United States, or by the Constitution of Maine.
				  36 M.R.S.
				  §5200-A(2)(A) and (F).
				  In such cases, the deduction must be prorated between apportionable income and
				  exempt income in a manner that fairly distributes the deduction among the
				  classes of income to which it is applicable.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 801 - APPORTIONMENT › Section 125-801-12 - Application date

Current through 2024-29, July 17, 2024
Except where otherwise stated, this Rule applies to tax
				  years beginning on or after January 1, 2010, except that, for tax years
				  beginning on or after January 1, 2022, this rule does not apply to a
				  corporation unless that corporation has income tax nexus with Maine during the
				  taxable year as determined in accordance with
				  36 M.R.S.
				  §5200-B and MRS Rule 808 (18-125 C.M.R.,
				  ch. 808).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-01 - Definitions

Current through 2024-29, July 17, 2024
A.
Code.
"Code" has the same
				meaning as in
				36 M.R.S.
				§111(1-A).
B.
Enrolled member.
"Enrolled
				member" means an individual who is enrolled with, and appears on the tribal
				membership roll of, the Houlton Band of Maliseet Indians, the Passamaquoddy
				Tribe, or the Penobscot Nation. Membership rolls of enrolled members are in the
				possession of, and maintained by, the Houlton Band of Maliseet Indians, the
				Passamaquoddy Tribe, and the Penobscot Nation.
C.
Foreclosure sale.
For
				purposes of
				36 M.R.S.
				§5250-A, "foreclosure sale" means a sale
				of real property incident to a foreclosure and includes a mortgagee's sale of
				real estate owned property of which the mortgagee, or third-party entity,
				retained or took ownership as the result of an unsuccessful attempt to sell the
				property at the time of a previous foreclosure auction.
D.
Income.
For purposes of
				calculating quarterly withholding amounts under Section .06(A) below, "income"
				means the actual income of the payee for a particular quarter or 25% of the
				payee's annual income.
E.
Maine-source member income.
"Maine-source member income" means a
				member's or owner's share of net income of a pass-through entity apportioned to
				Maine in accordance with 36 M.R.S., chapter 821.
F.
Net income of the entity.
For
				purposes of Section .06 below, "net income of the entity" means the items of
				income, loss, and deduction of a partnership, limited liability company, or
				similar entity reported on federal Form 1065, or the items of income, loss, and
				deduction of an S corporation reported on federal Form 1120S.
G.
Nonresident.
For the purposes
				of Section .06 below, "nonresident" means:
1.
				For individuals, a natural person who is not a "resident individual," as that
				term is defined by
				36 M.R.S.
				§5102(5). "Nonresident
				individual" is defined under
				36 M.R.S.
				§5102(3);
2. For business entities, including C
				corporations and pass-through entities, an entity whose commercial domicile is
				not in Maine. For purposes of this paragraph, "commercial domicile" means the
				principal place from which the business activities of a taxpayer are directed
				or managed. If it is not possible to determine the principal place from which
				the business activities of a taxpayer are directed or managed, the state of the
				taxpayer's incorporation (or similar registration, if not a corporation) is
				considered its commercial domicile; and
3. For trusts and estates, a trust or estate
				that is not a "resident estate or trust" as that term is defined by
				36 M.R.S.
				§5102(4). "Nonresident
				estate or trust" is defined under
				36 M.R.S.
				§
											5102(2).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-02 - General withholding requirements

Current through 2024-29, July 17, 2024
Maine law requires payers to withhold money from certain
				  payments and remit that money to the State Tax Assessor ("Assessor") for
				  application against the Maine income tax liability of payees. The amount of
				  withholding must be calculated according to the provisions of this rule and
				  must constitute a reasonable estimate of the Maine income tax to be due on the
				  payment. Amounts withheld must be paid over to Maine Revenue Services ("MRS")
				  on a periodic basis as provided by Maine law and this rule. Forms prescribed by
				  the Assessor must be used for this purpose.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-03 - Persons required to withhold Maine income tax

Current through 2024-29, July 17, 2024
A.
Generally.
Any person who
				maintains an office or transacts business in Maine and who is required to
				withhold federal income tax from a payment must also withhold Maine income tax,
				unless the payment constitutes income that is excluded from taxation under
				Maine law.
B.
Pass-through
				entities.
A pass-through entity doing business in Maine must withhold
				Maine income tax for nonresident members based on Maine-source member
				income.
C.
Voluntary
				withholding.
A payer who is not otherwise required to withhold Maine
				income tax may register solely for the purpose of withholding Maine income tax
				if the payer and the payee agree to have Maine income tax withheld from
				payments to the payee. Once registered, the payer will be treated as a person
				required to withhold Maine income tax and must comply with the reporting and
				payment requirements set forth in this rule.
D.
Buyers of real property.
A
				buyer of real property located in Maine must withhold Maine tax from the
				consideration paid that is attributable to sellers of the property, in
				accordance with
				36 M.R.S.
				§5250-A and instructions or other
				guidance published by MRS. A buyer that withholds Maine income tax from a
				seller must file a withholding statement on forms prescribed by the Assessor
				identifying the seller, the amount withheld, and any other information required
				on the statement. In the case of multiple sellers of a single property, the
				buyer must complete a separate withholding statement for each seller subject to
				withholding.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-04 - Withholding from wage payments

Current through 2024-29, July 17, 2024
A.
Wage
				methods.
Any of the following methods may be used by persons responsible
				for withholding to determine the amount of Maine income tax to be withheld from
				payments subject to the federal wage method of withholding. Generally, the
				amount of withholding is determined based on the information provided on the
				Maine Employee's Withholding Allowance Certificate (Form W-4ME). The payroll
				period used to determine Maine income tax withholding is the same period used
				to determine federal income tax withholding or, if federal withholding is not
				required, the period that would be required to be used if federal income tax
				withholding were required.
1.
Percentage method.
The amount of tax to be deducted and withheld
				under the percentage method of withholding is determined using the applicable
				percentage method tax rate schedule and related instructions contained in the
				current year's "Withholding Tables for Individual Income Tax" booklet prepared
				by the Assessor.
2.
Wage
				bracket tables method.
The amount of tax to be deducted and withheld
				under the wage bracket tables method is determined using the applicable wage
				bracket withholding table contained in the current year's "Withholding Tables
				for Individual Income Tax" booklet with respect to the period in which such
				wages are paid. Each table consists of wage brackets that establish the tax to
				be withheld by number of withholding allowances.
3.
Other methods.
If neither the
				percentage method nor the wage bracket tables method of withholding properly
				reflects an amount substantially equivalent to the tax reasonably estimated to
				be due from an employee's wages, either the person responsible for withholding
				or the payee may request permission from the Assessor to use an alternate
				method acceptable to both the payee and payer. As provided in Section .08
				below, claiming a larger number of withholding allowances for Maine purposes
				than that calculated under this rule is not allowed unless a Personal
				Withholding Allowance Variance Certificate has been filed with, and approved
				by, the Assessor.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-05 - Withholding from non-wage payments

Current through 2024-29, July 17, 2024
A.
Generally.
Except for income paid to a tribal member who resides
				on tribal land that is derived from or connected with sources on tribal land
				(as determined by
				36 M.R.S.
				§5132 and MRS Rule
				825) where no withholding is
				required, withholding from non-wage payments is determined in accordance with
				subsections B through F of this section.
B.
Flat rate withholding.
Non-wage payments subject to flat rate federal withholding are subject to Maine
				withholding at a flat rate of five percent. Payments subject to flat-rate
				withholding include, but are not limited to, the following:
1. Reportable payments that are subject to
				federal backup withholding pursuant to Code §
										3406;
2. Wages, interest, dividends, rent, and
				other payments to nonresident aliens of the United States that are subject to
				federal withholding under Code §
										1441;
3. Payments to foreign corporations that are
				subject to federal withholding under Code §
										1442;
4. Effectively connected income of a foreign
				partner when subject to federal withholding under Code §
										1446;
5. Amounts received on the disposition of a
				Maine real property interest by a foreign person when subject to withholding
				under Code §
										1445; and
6. Non-periodic distributions from certain
				retirement plans, including Individual Retirement Accounts (IRAs),
				employer-sponsored deferred compensation plans, and self-employed pension plans
				when subject to federal withholding.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-06 - Pass-through entity withholding for nonresident members

Current through 2024-29, July 17, 2024
A.
Withholding and filing
				requirements.
1.
Annual
				filing.
A pass-through entity that has nonresident members that realize
				Maine-source member income shall file an annual return reporting information
				about the entity, nonresident members subject to withholding, nonresident
				members exempt from withholding, and any other information required by the
				Assessor. The return is due no later than March 15 following the end of the
				calendar year. If an entity has no income tax withholding liability for the
				period and has been granted an extension for filing its federal information
				return (such as Form 1065 or Form 1120S), the due date for filing under this
				section is extended for an equivalent period of time.
2.
Withholding amount.
Unless
				modified pursuant to this rule or by the Assessor, either by ruling on a
				specific request or in published instructions, a pass-through entity must
				withhold Maine income tax from nonresident members' Maine-source member income
				at the rate of 8.93% in the case of a nonresident member taxed as a
				corporation. For all other nonresident members, the withholding rate is
				7.15%.
3.
Quarterly
				payments.
An entity that is required to withhold more than $1,000 for
				the calendar year shall for each calendar quarter make estimated payments equal
				to 25% of the lesser of the following:
(a) 90%
				of the amount required to be withheld for the year, and
(b) The tax required to have been withheld
				for the prior calendar year, except that this subparagraph does not apply if
				the entity had a tax year of less than 12 months that ended during the
				preceding calendar year, the entity was not required to withhold for the prior
				calendar year, or the entity did not file a return under Section .06(A)(1),
				above, for the prior year.
The estimated payments for each calendar quarter are due on
				  or before the following dates: April 30, July 31, October 31, and January 31 of
				  the following year.
The Assessor shall prescribe the voucher required to be filed
				  with the quarterly payments. Any remaining tax due must be paid by the due date
				  of the annual return required in paragraph 1, without regard to any extension
				  for filing. In the case of any underpayment of estimated tax, interest shall
				  accrue at the rate provided in
				  36 M.R.S.
				  §186 on the amount of the underpayment
				  beginning with the due date of the installment and ending on the due date of
				  the annual return or the date of payment, whichever is earlier. Interest and
				  penalties also apply with respect to payments made after the due date of the
				  annual return in accordance with the provisions of Title 36 of the Maine
				  Revised Statutes.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-08 - Form W-4ME

Current through 2024-29, July 17, 2024
A.
Maine
				Employees's Withholding Allowance Certificate (Form W-4ME).
A payee must
				furnish the payer with a signed Maine Employee's Withholding Allowance
				Certificate (Form W-4ME) on the same date as the payee furnishes the payer with
				the required federal Employee's Withholding Certificate (Form W-4 or W-4P). The
				payee must indicate on the Maine certificate the same marital status claimed on
				the federal certificate, except that a married payee may elect withholding at
				the higher single rate on the Maine certificate by checking the "married, but
				withholding at higher single rate" box. The Maine certificate must also list
				the number of withholding allowances the payee claims for Maine withholding, as
				determined in accordance with this rule.
If the payee is required to provide the payer with a revised
				  federal Form W-4 or W-4P because of a change in status and that change also
				  affects information contained on the payee's Form W-4ME, the payee must
				  complete a new Form W-4ME on the same date to reflect the same change. The
				  revised Form W-4ME takes effect on the same date as the revised federal Form
				  W-4 or W-4P.
For individuals who do not qualify for a Maine exemption from
				  withholding, the maximum number of Maine withholding allowances is calculated
				  as follows:
1. An individual is
				allowed an allowance if they cannot be claimed as a dependent by another
				taxpayer;
2. An individual is
				allowed an additional allowance for their spouse if they will file as married
				filing jointly and the spouse cannot be claimed as a dependent by another
				taxpayer;
3. An individual is
				allowed an additional allowance if they will be filing as Head of Household;
				and
4. An individual is allowed an
				additional allowance for each child and dependent for whom they will be able to
				claim the federal child tax credit or the federal credit for other dependents.
An individual may claim fewer allowances than the individual
				  is entitled to claim without seeking approval. An individual who wants to claim
				  more allowances than would be calculated for that individual under this rule
				  must file a Personal Withholding Allowance Variance Certificate to obtain
				  permission from the Assessor.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-09 - Payment

Current through 2024-29, July 17, 2024
A.
Payment schedule.
A payer
				must remit the withheld tax in accordance with one of two schedules based on an
				annual determination pursuant to Section .09(C) below. The two remittance
				schedules are semi-weekly and quarterly. Passthrough entity withholding under
				Section .06 above must be remitted quarterly.
B.
Lookback period defined.
The
				lookback period for each calendar year is the 12-month period ending on the
				preceding June 30. For example, the lookback period for calendar year 2021 is
				July 1, 2019 through June 30, 2020.
C.
Determination of status.
Excluding pass-through entity withholding under Section .06 above, the
				determination of a payer's remittance schedule for a calendar year is based on
				the aggregate amount of withheld taxes reported by the withholder for the
				lookback period. New payers are treated as having an income tax withholding
				liability of zero for any calendar quarter within the lookback period during
				which the withholder did not exist.
1.
Semi-weekly remitters.
A payer must remit on a semi-weekly basis
				for the entire calendar year if the aggregate amount of withholding reported
				for the lookback period was $18,000 or more. A semi-weekly remitter must remit
				according to the following schedule:
Day Wages Paid:
Remittance Due:
Wednesday, Thursday, Friday
On or before the following Wednesday
Saturday, Sunday, Monday, Tuesday
On or before the following Friday
If a quarterly reporting period ends within a semi-weekly
				  period, and if wages are paid on payment dates that fall in each of the two
				  quarters, separate remittances must be made for each quarter in a manner that
				  clearly identifies the correct quarterly reporting period for each remittance.
				  For example, if one quarterly return period ends on Thursday and a new
				  quarterly return period begins on Friday, tax withheld from payments made on
				  Wednesday and Thursday is subject to one remittance requirement and tax
				  withheld from payments made on Friday is subject to a separate remittance
				  requirement.
2.
Quarterly remitters.
A payer is a quarterly remitter for the
				entire calendar year if the aggregate amount of withholding reported for the
				lookback period was less than $18,000. The quarterly remitter must remit the
				amount withheld from payments made during a calendar quarter on or before the
				last day of the month following the close of the calendar quarter. If paying by
				check, the payment must accompany the quarterly return.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-10 - Electronic filing and payment

Current through 2024-29, July 17, 2024
A.
Electronic
				filing of returns.
Payers and payroll processors that meet any one of
				the thresholds specified in MRS Rule
				104 (18-125 C.M.R., ch. 104) must
				electronically file original quarterly returns for Maine income tax withholding
				(Form 941ME) and annual reconciliation of Maine income tax withheld (Form
				W-3ME).
B.
Electronic funds
				transfer (EFT).
The Assessor accepts payments by EFT. Generally, a
				person with an annual Maine income tax withholding liability that meets the
				threshold specified in MRS Rule
				102 (18-125 C.M.R., ch. 102) must
				remit the required amounts electronically. Payroll processors, however, must
				remit all Maine income tax withholding payments electronically, regardless of
				annual liability. Others may participate in EFT voluntarily. The payment
				voucher, Form 900ME, must not be filed when remitting by EFT. Withholders that
				remit by EFT must still file the quarterly return to report withholding
				information.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-11 - Registration

Current through 2024-29, July 17, 2024
A.
Registration by persons required to
				withhold income tax.
Persons required by Maine law to withhold or who
				voluntarily withhold Maine income tax must register with the MRS Central
				Registration Unit or via the Maine Tax Portal as a withholder. Registration is
				accomplished by completing the application form provided by the Assessor and
				submitting it according to the instructions on the form or via electronic
				registration.
B.
Cancellation
				of withholding registration.
A person who is registered to withhold
				Maine income tax but who no longer has a withholding obligation must notify the
				Assessor that withholding is no longer required and ask that the withholder's
				account be canceled. The notification must be submitted on the cancellation
				form provided by the Assessor or via the Maine Tax Portal and must include the
				reason that Maine income tax withholding is no longer required and the date the
				withholding obligation ceased. If the business has been sold or otherwise
				transferred to another person, the name and address of that other person and
				the date of the sale or transfer must be included. If no such sale or transfer
				occurred, or the employer or other payer does not know the name of the person
				to whom the business was sold or transferred, that fact must be included in the
				notification.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-12 - Application date

Current through 2024-29, July 17, 2024
Except where otherwise stated, this rule applies to tax
				  periods beginning on or after January 1, 2023.