reglab/statecodes huggingface dataset:
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.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.
Composite return.
"Composite
				return" means the Maine income tax return filed by an entity in accordance with
				this rule on behalf of some or all of its partners, beneficiaries, or
				shareholders who are "eligible persons," as defined in Section .01(D)
				below.
C.
Electing small
				business trust.
"Electing small business trust" ("ESBT") has the same
				meaning as given to that term by the Code § 1361(e).
D.
Eligible person.
"Eligible
				person" means a person that elects to participate in a composite return by
				completing the required Nonresident Member Affidavit and Agreement to
				Participate in a Composite Filing of Maine Income Tax (Form 941CF-ME) that is:
1. an individual who is a nonresident
				individual for the entire taxable year, and whose entire Maine adjusted gross
				income, including a spouse's income in the case of married individuals filing a
				joint federal return, is from one or more entities and the individual elects to
				participate in the composite return filed by each entity;
2. that portion of a federally recognized
				ESBT or Qualified subchapter S trust that consists of holdings of stock in an S
				corporation; or
3. a nonresident
				trust or nonresident estate that has its entire Mainesource income for the
				taxable year from one or more entities, would have included such income as
				Maine taxable income if it were to file an income tax return for that year, and
				has not distributed any of its Maine-source income for the taxable year to its
				beneficiaries as distributable net income.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.03 - ELECTION TO PARTICIPATE IN A COMPOSITE RETURN FILING

Current through 2024-29, July 17, 2024
An entity filing a composite return must obtain written
				  authorization, on Form 941CF-ME, from those eligible persons included in the
				  composite return to file a Maine income tax return on their behalf. The filed
				  composite return constitutes a statement that authorization has been obtained
				  from each included eligible person. By granting such authorization, an eligible
				  person agrees to be subject to the taxing jurisdiction of the State of Maine
				  and its agencies and courts for the purposes of determining and collecting
				  Maine income tax, interest, and penalties; authorizes the entity to receive
				  notices from MRS on behalf of the eligible person; waives any right to claim
				  income modifications, deductions, exemptions, and credits otherwise allowable
				  under the Maine Income Tax Law, other than business credits specified in  36
				  M.R.S. §5219-G for which no income modification or election is required;
				  and waives any right to file an amended return to amend the reporting of any
				  item reported by the entity, except through an amended composite return filed
				  by the entity, for any taxable year for which a composite return has been-
				  filed on the eligible person's behalf.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.04 - COMPUTATION OF TAX

Current through 2024-29, July 17, 2024
The Maine income tax liability of each eligible person who
				  elects to be included in a composite return is equal to the person's entity
				  income multiplied by the highest marginal rate provided in  36 M.R.S. §
										5111 for the applicable tax year.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.05 - BUSINESS CREDITS

Current through 2024-29, July 17, 2024
Each participating eligible person may claim the person's
				  share of the business credits to which the eligible entity is entitled provided
				  that the credit is one for which no income modification or election is
				  required.  36 M.R.S. §5219-G.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.06 - PAYMENT OF TAX

Current through 2024-29, July 17, 2024
An entity must make estimated payments of Maine income tax on
				  behalf of participating members pursuant to  36 M.R.S. §5228 if the
				  aggregate liability of the participating eligible persons is greater than
				  $1,000.00 for the tax year.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.07 - AMENDED RETURNS

Current through 2024-29, July 17, 2024
A. A composite
				return may not be changed or corrected except by an amended composite return
				filed by the entity that filed the original composite return.
B.
Partnership audits; federal
				adjustments report.
A partnership with partners required to file a
				federal adjustments report under  36 M.R.S. §5196(1) and, in the reviewed
				year of the audit, participated in a composite return in accordance with this
				rule must, within 180 days of the final determination date of the
				partnership-level audit, file an amended composite return for the reviewed year
				to report the additional income tax due with respect to those partners
				determined in accordance with the provisions of 36 M.R.S., Part 8 and this rule
				as in effect for the reviewed year. For purposes of this subsection, the final
				determination date is the date on which the partnership submits a request to
				the IRS, for any relevant partner, for a modification pursuant to the Code
				§ 6225(c)(2)(A) or (B).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.08 - TAXABLE YEAR; MAINE ADJUSTED GROSS INCOME; MAINE TAXABLE INCOME

Current through 2024-29, July 17, 2024
Notwithstanding any other provision of law to the contrary,
				  the taxable year of an eligible person included in a composite return is the
				  taxable year of the entity filing the composite return and the Maine adjusted
				  gross income of an individual and the Maine taxable income of an estate or
				  trust included as an eligible person in a composite return is that person's
				  entity income for that taxable year.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 805 - COMPOSITE RETURN FILING › Section 125-805-.09 - DUE DATE

Current through 2024-29, July 17, 2024
The due date of the composite return is the fifteenth day of
				  the fourth month following the close of the taxable year of the entity filing
				  the composite return.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-01 - Definitions

Current through 2024-29, July 17, 2024
A.
Intangible property.
"Intangible property" means a right or possession of a nonphysical or abstract
				nature that has value, or a financial asset that has no intrinsic value but
				that represents value. Intangible property includes but is not limited to
				copyrights, patents, licenses, bills of exchange, trademarks, business books
				and records, business goodwill, covenants not to compete, securities, bonds,
				notes, insurance policies, and accounts receivable.
B.
Pass-through entity.
"Pass-through entity" means a corporation that for the applicable tax year is
				treated as an S corporation under the Code, or a general partnership, limited
				partnership, limited liability partnership, limited liability company, trust or
				similar entity that for the applicable tax year is not taxed at the entity
				level for federal income tax purposes. "Pass-through entity" does not, for
				Maine income tax purposes, include a financial institution subject to tax under
				36 M.R.S. Chapter 819.
C.
Permanent business presence.
"Permanent business presence" means
				presence in the State on a systematic or regular basis for the purpose of
				conducting business.
D.
Research and development.
"Research and development" means
				activities performed in the experimental or laboratory sense if they are
				intended to discover information that would eliminate uncertainty concerning
				the development or improvement of a product, formula, invention, process,
				technique, or patent, but excludes quality control testing and inspection,
				advertising or promotions, efficiency or consumer surveys, management studies,
				research in connection with literary, historical or similar projects, or the
				acquisition of another's patent, model, production, or process.
E.
Tangible personal property.
"Tangible personal property" means personal property that has physical
				existence. It can be seen, weighed, measured, felt, touched or in any other
				manner perceived by the senses, but does not include anything that constitutes
				intangible property as defined in subsection A above.
F.
Temporary business presence.
"Temporary business presence" means a presence in the State on other than a
				systematic or regular basis, either directly or through agents or employees for
				purpose of conducting business.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-03 - Income not subject to Maine income tax

Current through 2024-29, July 17, 2024
The following types of income earned or derived by
				  nonresidents are not subject to Maine income tax:
A.
Certain intangible income.
Except for the provisions of Section .02, income from intangibles, such as
				annuities, interest, dividends, copyrights, patents, and gains from the sale or
				exchange of intangibles (other than the sale of partnership interests), when
				not related to a trade, business, profession or occupation carried on in
				Maine;
B.
Certain military
				pay.
Compensation paid by the United States of America to its uniformed
				military personnel for services rendered on active duty, including members of
				the Army, Navy, Air Force, Coast Guard, and Marines who are assigned to a
				military air base, naval station, or any facility in Maine, public or private,
				to which they must report under service orders (see the federal Service members
				Civil Relief Act);
C.
Military spouses.
Income earned from services performed in Maine
				by a nonresident spouse of a service member if the spouse is a nonresident in
				Maine solely to be with a service member who is in Maine in compliance with
				that service member's orders;
D.
Certain transportation employees.
Earnings paid to nonresident
				transportation workers whose wages are exempt from Maine taxation by federal
				law, including interstate railroad and motor carrier employees who perform
				services for their employer in more than one state (49 USCS §§ 11502
				and 14503 ); and
E.
Exempt
				retirement income.
Retirement income, including pensions and deferred
				compensation received after termination of employment, that is exempt from
				state income taxes pursuant to United States law (4 USCS § 114
				).
F.
Certain nonresidents
				working in Maine under interlocal agreements.
Beginning in tax year
				2011, income earned by a nonresident employee of a political subdivision of an
				adjoining state performing services in Maine in accordance with an interlocal
				agreement under 30-A M.R.S., Chapter 115 is not considered Maine-source income,
				so long as the work performed does not displace a Maine resident
				employee.
G.
Income directly
				related to a declared state disaster or emergency.
For tax years
				beginning on or after January 1, 2013, employee compensation or business income
				that is directly related to a declared State disaster or emergency, but only
				if:
1. 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 declared state disaster or emergency period;
				and
2. The services were requested
				by the State, a county, city, town or political subdivision of the State or a
				registered business as defined in 10 M.R.S. c. 1201.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-06 - Income tax credits

Current through 2024-29, July 17, 2024
Most income tax credits available to a resident individual
				  are also available to a nonresident individual; however, personal income tax
				  credits, such as the credit for child care expenses (
				  36 M.R.S.
				  §5218 ) and the retirement and
				  disability credit (
				  36 M.R.S.
				  §5219-A ), must be prorated based upon
				  the ratio of the taxpayer's Maine-source income to entire federal adjusted
				  gross income as modified by
				  36
				  M.R.S. §5122. The total amount of income
				  tax credits based upon a business being operated in Maine by the nonresident
				  taxpayer (business credits) may be claimed without proration, subject to the
				  limitations contained in the statute for the credit or credits involved. (See
				  36 M.R.S. Chapter 822.)
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-07 - Return of nonresident or part-year resident individual

Current through 2024-29, July 17, 2024
Nonresidents and part-year residents must file the Maine
				  resident long form supplemented by Schedule NR or Schedule NRH. Schedules NR
				  and NRH are used to separate Maine-source income or loss from non-Maine-source
				  income or loss and to compute the nonresident credit. A copy of the federal
				  income tax return (Form 1040) and Schedule A (if itemized deductions are
				  claimed on the Maine return) must be attached. The taxpayer must submit a copy
				  of any other federal forms or schedules that the Assessor deems necessary to
				  determine Maine-source income.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-09 - Maine tax additions and tax credits for spouses filing as single individuals

Current through 2024-29, July 17, 2024
Maine tax additions and Maine tax credits available if a
				  joint return were filed is multiplied by the electing individual's ratio of
				  Maine adjusted gross income to the Maine adjusted gross income of the joint
				  return. If separate accounting has been maintained so that tax additions and
				  tax credits can be separately determined and substantiated, the individual
				  filing may report as if a separate federal return had been
				  filed.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-10 - Maine income tax withholding obligations

Current through 2024-29, July 17, 2024
Maine law requires income tax to be withheld by the following
				  entities for nonresidents:
A.
Employers and certain non-wage payers.
Any person who maintains an
				office or transacts business in Maine and who is required to withhold federal
				income tax from a particular payment must also withhold Maine income tax if the
				payment constitutes income that is not excluded from taxation under Maine law.
				See
				36 M.R.S.
				§§5250 and
				5255-B.
				Employers who are required to withhold Maine individual income tax from
				employees must withhold from the earnings of nonresident individuals who are
				present in Maine performing personal services, provided the minimum taxability
				thresholds contained in
				36
				M.R.S. §5142(8-B) are
				exceeded.
B.
Pass-through
				entities.
A pass-through entity with income apportioned to Maine must
				withhold Maine income tax from any nonresident's quarterly share of
				Maine-source income earned by that pass-through entity as provided in
				36
				M.R.S. §5250-B.
C.
Buyers of real estate from
				nonresidents.
Buyers of Maine real property purchased from nonresidents
				must withhold an amount equal to 2.5% of the sale price to be used as an
				estimated tax payment towards any Maine tax liability on the gain realized from
				the sale. The buyer of the property must remit the real estate withholding to
				Maine Revenue Services using form REW-1. Exemptions or reductions in the
				withholding amount may apply in certain situations. See
				36 M.R.S.
				§5250-A(3).
For more information on income subject to Maine income tax
				  withholding and determining the amounts to be withheld, see Rule
				  803
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 806 - NONRESIDENT INDIVIDUAL INCOME TAX › Section 125-806-11 - Application date

Current through 2024-29, July 17, 2024
Unless otherwise indicated, this Rule applies to tax years
				  beginning on or after January 1, 2011.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-01 - Definitions

Current through 2024-29, July 17, 2024
A.
Nonresident.
"Nonresident"
				means, for individual income tax purposes, a natural person who is not a Maine
				"resident individual" as that term is defined by
				36 M.R.S.
				§5102(5).
B.
Part-year resident.
"Part-year resident" means, for individual income tax purposes, a natural
				person who is domiciled in Maine for less than a full taxable year and who is
				not a statutory resident in that year.
C.
Permanent place of abode.
"Permanent place of abode" means a house, apartment, residential care facility,
				dwelling place, or other residence that an individual maintains as a household
				for the entire tax year, whether or not that individual owns it. The term does
				not include a seasonal camp or cottage that is used only for vacations or a
				dormitory room used by a student during the school year. A place of abode is
				not considered "permanent" if it is maintained only during a temporary stay in
				Maine for the accomplishment of a particular purpose.
D.
Resident.
"Resident" means,
				for individual income tax purposes, a natural person who is a Maine "resident
				individual" as that term is defined by
				36 M.R.S.
				§5102(5).
E.
Safe harbor resident.
"Safe
				harbor resident" means a natural person who is domiciled in Maine, but who is
				not treated as a resident individual of Maine for income tax
				purposes.
F.
Statutory
				resident.
"Statutory resident" means a natural person who is a resident
				individual in accordance with
				36 M.R.S.
				§5102(5)(B).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-02 - General information

Current through 2024-29, July 17, 2024
A.
Maine
				resident.
A Maine resident must pay Maine income tax on all taxable
				income regardless of its source. If a Maine resident is subject to income tax
				by another state or similar jurisdiction in another country on the same income,
				the taxpayer may be allowed a credit against Maine income tax for all or some
				of the tax paid to the other state or jurisdiction.
B.
Nonresident or safe harbor
				resident.
A nonresident or a "safe harbor" resident of Maine must pay
				Maine income tax on all income from work performed in Maine. The nonresident or
				"safe harbor" resident must also pay Maine income tax on all other income
				derived from Maine sources, including income derived from business activity in
				Maine carried out by sole proprietorships, partnerships, and S corporations;
				capital gains from real or tangible property sold in Maine; and income from
				rental of Maine property. A nonresident generally is not required to pay Maine
				tax on interest, dividends, alimony, pensions, or other income from intangible
				sources, except on certain sales of a partnership interest, unless such income
				is from property employed in a business carried on in Maine.
C.
Part-year resident.
A
				part-year resident of Maine must pay tax on all income for the part of the year
				during which the individual was domiciled in Maine. A part-year resident must
				also pay tax on any income derived from Maine sources during the entire
				year.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-03 - Domicile status

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. 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. The intent to move in the future is not sufficient to establish a
				  change in 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 critical factor in determining domicile, an individual's statement
				  as to his or her intent is not necessarily determinative. Evidence of the
				  individual's intent may be found in many decisions made by the individual. An
				  individual may retain the ability to make certain decisions and determine his
				  or her domicile even though that individual is considered incapable of making,
				  or chooses not to make, other decisions, such as health care choices or
				  financial determinations. Actions by a person responsible for an incapacitated
				  individual's affairs may be considered when determining the incapacitated
				  individual'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 807 - RESIDENCY › Section 125-807-04 - Factors used in determining an individual's domicile

Current through 2024-29, July 17, 2024
All relevant facts and circumstances allowed by Maine law are
				  considered in determining where an individual is domiciled. The following
				  factors, while not exclusive or of equal weight, may be used as evidence of
				  domicile.
A. Property ownership and
				residence.
1. Location of the individual's
				principal residence under the
Internal Revenue Code;
2. Location of the individual's mailing
				address;
3. Where the individual
				spent the most amount of time; and
4. Whether the individual applied for a
				residential property tax exemption or related benefit in Maine or a comparable
				benefit in another state.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-05 - Statutory residency

Current through 2024-29, July 17, 2024
Even if an individual is domiciled in another state, he or
				  she may still be taxed as a Maine resident if that individual is a statutory
				  resident. If an individual maintained a permanent place of abode in Maine but
				  claims to have been domiciled elsewhere and not present in Maine for more than
				  183 days during the tax year, that individual must present adequate records to
				  verify that more than half of the year was spent in another state. Records
				  confirming whereabouts commonly include planners, calendars, plane tickets,
				  canceled checks, and credit card and other receipts.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-06 - Residency safe harbors

Current through 2024-29, July 17, 2024
A.
Generally.
For tax years beginning on or after January 1, 2007,
				Maine law provides that certain individuals are not treated as resident
				individuals even though they are domiciled in Maine. In order to qualify for
				such a statutory "safe harbor," the individual must fall under either the
				General Safe Harbor or the Foreign Safe Harbor.
B.
General safe harbor:
An
				individual domiciled in Maine will be treated as a nonresident if, during the
				tax year in question, the individual:
1. Did
				not maintain a permanent place of abode in Maine;
2. Maintained a permanent place of abode
				outside Maine; and
3. Spent no more
				than 30 days in the aggregate in Maine (with any portion of a day counted as a
				full day).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-07 - Resident and nonresident aliens

Current through 2024-29, July 17, 2024
A. Certain
				Maine-source income of a nonresident alien, (i.e., an individual who is a not a
				citizen of the United States and who resides outside the United States) may be
				subject to Maine income tax. An individual who is a resident alien (i.e., an
				individual who is not a citizen of the United States but who resides in the
				United States) for federal income tax purposes and a Maine resident for state
				income tax purposes must pay Maine income tax on all income. This subsection
				does not apply to tax years beginning on or after January 1, 2020.
B. For tax years beginning on or after
				January 1, 2020, Maine residency and Maine income tax of resident and
				nonresident aliens are determined under Maine law without reference to federal
				resident or nonresident alien status, unless otherwise provided in Maine
				law.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-08 - Military personnel

Current through 2024-29, July 17, 2024
A.
Service
				member.
A military service member's legal residence does not change
				solely because of a change in duty assignment. The legal residence designated
				at the time of entry into the service remains the same until the member
				establishes a new legal residence. A completed DD Form 2058, "State of Legal
				Residence Certificate," is evidence of a change in domicile.
1.
Nonresident service member:
The military income of a nonresident stationed in Maine will not be taxed by
				Maine, nor will income from intangible sources, such as interest and dividends.
				However, additional wages earned performing services at a non-military job in
				Maine or income from operating a business in Maine are all subject to Maine
				incometax.
2.
Resident
				service member:
Subject to the provisions of
				36 M.R.S.
				§5122(2)(LL), military
				compensation earned by a Maine resident service member for service performed
				outside Maine under written military orders will not be taxed by Maine for:
a. Active duty service in the active
				components of the US Army, Navy, Air Force, Marines, or Coast Guard by a
				service member whose permanent duty station during such service is located
				outside Maine; and
b. Active duty
				service in the active or reserve components of the US Army, Navy, Air Force,
				Marines, or Coast Guard or in the Maine National Guard by a service member in
				support of a federal operational mission or a declared state or federal
				disaster response when the orders are either at federal direction or at the
				direction of the Maine Governor. A "federal operational mission" is limited to
				activity in support of overseas deployment and excludes standard duty activity,
				such as training and administrative activities.
An individual domiciled in Maine who is a member of the Armed
				  Forces of the United States, the National Guard, or Reservists who received
				  federal orders for active duty continues to be domiciled in Maine for income
				  tax purposes for the period of time stationed outside of Maine. The residency
				  safe harbors in section .06 may apply to a service member or spouse if
				  eligibility requirements are met.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 807 - RESIDENCY › Section 125-807-09 - Students

Current through 2024-29, July 17, 2024
Students generally remain residents of the state in which
				  they were domiciled prior to attending college, even if they attend college
				  full-time in another state. Thus, a Maine resident who attends school in
				  another state remains a Maine resident and must pay Maine income tax on all
				  taxable income from all sources until that individual establishes a domicile in
				  a different state.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 808 - CORPORATE INCOME TAX NEXUS › Section 125-808-.02 - GENERAL RULE FOR EVALUATION OF CORPORATE INCOME TAX NEXUS

Current through 2024-29, July 17, 2024
A corporation is subject to Maine income tax if it has nexus
				  with Maine and has income properly apportionable to Maine pursuant to Title 36
				  M.R.S., chapter 821, regardless of whether it is authorized to do business in
				  this State. A corporation has nexus with Maine if it engages in the activities
				  listed in section .03 below or meets the criteria of 36 M.R.S. §
									5200-B and section .04 below of
				  this rule. However, a corporation's activities will not subject it to the
				  income tax jurisdiction of Maine if the constitution or laws of the United
				  States, including 15 United
				  States Code §
										381
et
				  seq
. (P.L.
				  86-272), preclude the exercise of
				  jurisdiction.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 808 - CORPORATE INCOME TAX NEXUS › Section 125-808-.03 - ACTIVITIES ESTABLISHING NEXUS; TAX YEARS BEGINNING PRIOR TO JANUARY 1, 2022

Current through 2024-29, July 17, 2024
For tax years beginning prior to January 1, 2022, a
				  corporation generally has income tax nexus with Maine if it (a) does business
				  in Maine; or (b) owns or uses any part or all of its capital, plant, or other
				  property in Maine in a corporate capacity, as opposed to a strictly fiduciary
				  capacity.
A.
Doing
				business.
Without limitation, a corporation does business in Maine if it
				engages in any of the following activities in this state:
1. Maintains an office or other place of
				business;
2. Executes a
				contract;
3. Exercises or enforces
				contract rights;
4. Buys, sells or
				procures services or property; or 5. Employs labor.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 808 - CORPORATE INCOME TAX NEXUS › Section 125-808-.04 - CORPORATE INCOME TAX NEXUS; TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 2022

Current through 2024-29, July 17, 2024
For tax years beginning on or after January 1, 2022, a
				  corporation has income tax nexus with Maine if it:
A. Is organized or commercially domiciled in
				Maine; or
B. Is organized or
				commercially domiciled outside Maine, and the corporation's Maine property,
				payroll or sales exceed any of the following thresholds for the taxable year:
1. Property of $250,000;
2. Payroll of $250,000;
3. Sales of $500,000; or
4. Twenty-five percent of the corporation's
				total property, payroll, or sales.
Maine property, payroll, and sales are calculated in the same
				  manner used to determine income apportionment under 36 M.R.S., chapter 821 and
				  rules adopted by the Assessor, except that the sales calculation does not
				  exclude sales of tangible personal property under 36 M.R.S. §
											5211(14)(B). For a
				  taxpayer permitted or required to use a special apportionment method under 36
				  M.R.S. §
											5211(17), the
				  property, payroll, and sales used to determine nexus under this rule must be
				  consistent with the property, payroll, and sales used for the special
				  apportionment method.
A corporation that holds an interest directly or indirectly
				  in a partnership has nexus with Maine if the partnership is organized or
				  commercially domiciled in Maine or if the partnership is organized or
				  commercially domiciled outside Maine and the partnership's property, payroll,
				  or sales exceed the thresholds established in subsection B of this
				  section.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 808 - CORPORATE INCOME TAX NEXUS › Section 125-808-.05 - IMPUTED ACTIVITY

Current through 2024-29, July 17, 2024
For the purposes of determining whether a corporation is
				  subject to Maine's tax jurisdiction pursuant to sections .03 or .04 above, the
				  activities of the corporation's employees, agents, or representatives, however
				  designated, will be imputed to the corporation. An agent or representative may
				  be an individual, corporation, partnership, or other entity. Activities
				  conducted in Maine on behalf of a corporation by an independent contractor will
				  be imputed to the corporation to the extent allowed by the Constitution and
				  laws of the United States.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 808 - CORPORATE INCOME TAX NEXUS › Section 125-808-.06 - EXCEPTION FOR CERTAIN SOLICITATION ACTIVITIES (P.L. 86-272)

Current through 2024-29, July 17, 2024
A foreign corporation that has nexus with Maine is
				  nevertheless not subject to the Maine income tax if its activities in this
				  State are all activities that are set forth in
				  P.L.
				  86-272.
				  P.L.
				  86-272 precludes Maine from imposing a tax on the
				  income of a foreign corporation if the sole activity of the foreign corporation
				  in the State is the solicitation by the foreign corporation's representatives
				  (in the name of the foreign corporation or in the name of a prospective
				  customer) of orders for the sale of tangible personal property, provided that
				  the orders are sent outside of the State of Maine for approval or rejection,
				  and provided that the orders are filled by shipment or delivery outside of
				  Maine. Some examples of common solicitation activities are found at subsection
(D)
of this section below. See subsection
(E)
of this
				  section below for examples of unprotected activities.
A.
Limitations.
P.L.
				86-272 restricts a state's income tax jurisdiction
				only if the taxpayer's activity is limited to solicitation of orders for the
				sale of
tangible personal property.
P.L.
				86-272 does
not
afford protection in
				the following circumstances:
1. A
combination
of solicitation activities and non-solicitation
				activities in Maine;
2. The
				solicitation of orders for the sale or provisions of
services
,
				either standing alone or in combination with the solicitation of orders for
				tangible property. Some examples of the sale of a mixture of services and
				tangible personal property are photographic development and the provision of
				architectural or engineering services; and 3. The solicitation of orders for
				the sale, lease, rental, license, or other disposition of
real
				property
or
intangibles
.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 808 - CORPORATE INCOME TAX NEXUS › Section 125-808-.07 - EXEMPTION FOR CERTAIN OUT-OF-STATE SUPPLIERS OF SPIRITS; TAXABLE YEARS BEGINNING ON OR AFTER JANUARY 1, 2022

Current through 2024-29, July 17, 2024
For taxable years beginning on or after January 1, 2022, a
				  corporation that is an out-of-state supplier of spirits sold to BABLO within
				  the Department of Administrative and Financial Services (including a contractor
				  or agent of BABLO) may not be considered to have sufficient nexus, and is not
				  subject to Maine corporate income tax, if the corporation's in-state activities
				  are limited solely to the activities described in 36 M.R.S. §
									5202- D(2).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 810 - MAINE UNITARY BUSINESS TAXABLE INCOME, COMBINED REPORTS, AND TAX RETURNS › Section 125-810-.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.
Apportionment factor
. The
				apportionment factor is the sales factor.
See
36 M.R.S. §
									5211(8) and MRS
				Rule 801 (18-125
				C.M.R., Ch. 801.) In the case of an affiliated group of corporations engaged in
				a unitary business and filing a single return, the factor of the unitary
				business is the combined factor for all members of the group. In the case of a
				member of an affiliated group of corporations engaged in a unitary business
				that is filing a separate return, the numerator of the factor is the amount of
				sales in Maine attributable directly to that member plus the applicable portion
				of Maine sales attributable to non-nexus entities as determined under section
				.05(B) below and the denominator is the sales everywhere of all members of the
				affiliated group of corporations engaged in a unitary business.
C.
Code
. "Code" has the same
				meaning as in 36 M.R.S. §
									111 (1-A).
D.
Consistent with federal law or
				regulations
. "Consistent with federal law or regulations" or similar
				language used in this rule means making a relevant determination in the same
				manner as under federal law or regulations. "Consistent with federal law or
				regulations" or similar language used in relation to determining net operating
				losses and the use of losses means determining in the same manner as under
				federal law or regulations (a) whether a net operating loss deduction is
				allowed, (b) the amount of deduction, or (c) the timing of the deduction. It
				does not mean that a net operating loss for a unitary business - its
				occurrence, amount, or use as a deduction - is based solely on whether the net
				operating loss or its use as a deduction is included on a federal return filed
				by member corporations of the unitary business.
E.
Nexus
. A corporation has
				nexus with Maine when it has sufficient contact with Maine to give the State
				jurisdiction to tax. For taxable years beginning on or after January 1, 2022, a
				corporation has nexus with Maine if it exceeds the nexus thresholds in 36
				M.R.S. §
									5200-B and does not qualify for
				the exemption under 36 M.R.S. §
									5202- D.
See
MRS
				Rule 808 (18-125
				C.M.R., Ch. 808).
F.
Unitary
				business
. "Unitary business" means a business activity that is
				characterized by unity of ownership, functional integration, centralization of
				management and economies of scale. 36 M.R.S. §
									5102 (10-A).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 810 - MAINE UNITARY BUSINESS TAXABLE INCOME, COMBINED REPORTS, AND TAX RETURNS › Section 125-810-.02 - COMBINED REPORT

Current through 2024-29, July 17, 2024
A taxable corporation that is a member of an affiliated group
				  and that is engaged in a unitary business with one or more other members of
				  that affiliated group must file a combined report. 36 M.R.S. §
									5220(5). Maine
				  utilizes a "water's edge" methodology for determining the apportionable income
				  base, meaning the income subject to apportionment is the income required to be
				  reported on the taxpayer's federal income tax return as modified by Maine law.
				  Therefore, all unitary members of the affiliated group, except those members
				  not required to file a federal return, must be listed on the combined report.
				  Furthermore, the income of a corporation not required to file a federal return
				  may not be included on the combined report. The apportionment factor must
				  include only those amounts attributable to the apportionable income base for
				  that taxable year. Variation may be allowed when petitioned for by the taxpayer
				  or may be required by the Assessor.
See
36 M.R.S. §
									5211(17).
The combined report must indicate whether each corporation
				  has nexus with Maine. The combined report must also include, both in the
				  aggregate and by corporation: the federal taxable income, state modifications
				  provided by 36 M.R.S. §
									5200- A, sales in Maine and
				  everywhere, and the Maine net income of the unitary business.
See
36 M.R.S. §
									5244. The corporations listed that
				  are unitary members of the affiliated group and that have nexus with Maine must
				  file a Maine corporate income tax return or returns as provided in section .05
				  below.
See
36 M.R.S. §
									5220(5).
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 810 - MAINE UNITARY BUSINESS TAXABLE INCOME, COMBINED REPORTS, AND TAX RETURNS › Section 125-810-.04 - DIFFERING YEAR-END DATES

Current through 2024-29, July 17, 2024
If the taxable years of the members of the unitary business
				  differ, the filing member's (see section .05(A) below) taxable year must be
				  used to determine the net income of the unitary business.
If the precise amount of a unitary member's income can be
				  readily determined from the books for the months involved in the filing
				  member's taxable year, those actual amounts are to be used. In the absence of a
				  precise determination, the income of a unitary member must be converted to
				  conform to the taxable year of the filing member on the basis of the number of
				  months falling within the applicable taxable year. For example, if the filing
				  member operates on a calendar year and a unitary member includible in a
				  combined report operates on a fiscal year ending on April 30, it is necessary
				  to assign 8/12 of that member's income from the current taxable year and 4/12
				  of the income from the preceding taxable year in order to arrive at a full
				  twelve months' income to be included in the combined report. This method may be
				  used only if the return can be timely filed after the filing member's taxable
				  year ends. As an alternative, the combined report may include the taxable
				  income of a group member for the taxable year ending within the taxable year of
				  the filing member. Once one of these methods is used for a group member, that
				  member must continue to use that method for succeeding years for as long as the
				  corporation remains a member of the unitary business.
After the combined taxable income of the unitary business is
				  determined on the basis of the filing member's taxable year, the apportionment
				  factor must be computed on the basis of the same taxable
				  year.
Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 810 - MAINE UNITARY BUSINESS TAXABLE INCOME, COMBINED REPORTS, AND TAX RETURNS › Section 125-810-.05 - UNITARY BUSINESS RETURNS

Current through 2024-29, July 17, 2024
A.
Single
				return
. Taxable corporations that are members of an affiliated group and
				that are engaged in a unitary business may file a single return on which the
				aggregate Maine income tax liability of all those corporations is reported.
See
36 M.R.S. §
									5220(5). The
				income of the unitary business is the net income, or Maine net income, as the
				case may be, of the entire group. All members of the unitary business with
				Maine nexus must be included in the single return.
The single return must be filed in the name and federal
				  employer identification number of the parent corporation if the parent is a
				  member of the unitary business and has nexus with Maine. If there is no parent
				  corporation, if the parent is not a unitary group member, or if the parent does
				  not have nexus with Maine, the members of the unitary business must choose a
				  Maine taxpayer member to file the return. Once this filing member has been
				  selected, it must remain the same in subsequent years unless an ownership
				  change occurs or the filing member no longer has nexus with Maine. The return
				  must be signed by a responsible officer of the filing member as the agent of
				  all unitary business members subject to Maine tax. The Maine combined report of
				  the unitary business must be attached to the Maine corporate income tax return.
				  Members of the unitary group are jointly and severally liable for the tax of
				  the members of the unitary group included in the combined return.
B.
Separate return
.
				If the single return option is not chosen, each unitary member that has nexus
				with Maine must file a separate income tax return based on the combined report.
				Each of the separate returns must list the combined federal taxable income and
				the combined state modifications of the unitary business. Each separate member
				determines its apportionment factor as follows. The numerator of the factor is
				the amount of Maine sales attributable directly to that separate member plus
				the applicable portion of Maine sales attributable to non-nexus entities
				described below. The denominator of the factor is the amount of everywhere
				sales of the unitary business.
The applicable portion of Maine sales attributable to
				  non-nexus entities is determined by applying a fraction to the total Maine
				  sales of the non-nexus entities. The fraction is equal to the separate Maine
				  nexus member's Maine sales attributable directly to that member (i.e., Maine
				  sales before the addition of a portion of non-nexus affiliate sales) divided by
				  the total Maine sales attributable directly to all nexus entities. A copy of
				  the combined report must be attached to each of the separate
				  returns.