Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 825 - TRIBAL MEMBER INCOME FROM SOURCES ON TRIBAL LAND › Section 125-825-01 - Definitions

Current through 2024-29, July 17, 2024
A.
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.
B.
Houlton Band of Maliseet
				Indians.
"Houlton Band of Maliseet Indians" has the same meaning as in
				30 M.R.S. §
									6203(2).
C.
Houlton Band Trust Land.
"Houlton Band Trust Land" has the same meaning as in the federal Houlton Band
				of Maliseet Indians Supplementary Claims Settlement Act of 1986,
				Public Law
				99-566,
				Section
				2(2).
D.
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.
E.
Original Cost.
"Original
				cost" means the basis of the property for federal income tax purposes prior to
				any federal adjustments at the time of acquisition by the taxpayer and adjusted
				by subsequent capital additions or improvements thereto and partial disposition
				thereof by reason of sale, exchange, abandonment, or other
				disposition.
F.
Passamaquoddy
				Indian territory.
"Passamaquoddy Indian territory" has the same meaning
				as in 36
				M.R.S. §111(2-A). The
				term as defined by
				30 M.R.S.
				§
										6203(6) means the
				territory as defined by
				30 M.R.S.
				§6205(1).
G.
Passamaquoddy Tribe.
"Passamaquoddy Tribe" has the same meaning as in
				30 M.R.S.
				§
										6203(7).
H.
Pass-through entity.
"Pass-through entity" means a corporation that for the applicable tax year is
				treated as an S corporation under the Internal Revenue 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.
I.
Payroll factor.
"Payroll
				factor" means the ratio of compensation paid by the taxpayer to employees
				during the taxable year whose base of operations is on tribal land to
				compensation paid by the taxpayer to employees during the taxable year
				everywhere. The following apply only for purposes of determining the payroll
				factor:
1.
Effect of accounting
				method.
If a taxpayer has adopted the accrual method of accounting, all
				compensation properly accrued will be deemed to have been paid. However,
				compensation may be included in the payroll factor by use of the cash method if
				the taxpayer is required to report such compensation under that method for
				unemployment compensation purposes.
2.
Base of operations.
"Base of
				operations" means the taxpayer's place of business from which an employee
				customarily begins work or to which the employee customarily returns at some
				other time to receive instructions, direction and supervision from the taxpayer
				or communications from customers or other persons, to replenish stock or other
				materials, to repair equipment, or to perform any other function necessary to
				the exercise of the employee's trade or profession.
3.
Compensation.
"Compensation"
				means wages, salaries, commissions and any other form of remuneration paid to
				employees for personal services. Payments made pursuant to a contract to an
				employee-leasing company for leased employees are included at 85% as
				compensation or to a temporary service company for temporary employees are
				included at 100% as compensation. Payments made to an independent contractor,
				or any other person not properly classifiable as an employee, are excluded.
				Only amounts paid directly to employees are included in the payroll factor.
				Amounts considered paid directly include the value of board, rent, housing,
				lodging and other benefits or services furnished to an employee by the taxpayer
				in return for personal services provided that such amounts constitute income to
				the recipient under the Internal Revenue Code. In the case of employees not
				subject to the Internal Revenue Code (e.g., those employed in foreign
				countries), the determination of whether such benefits or services would
				constitute income to the employees is made as though such employees were
				subject to the Internal Revenue Code. Employer contributions under a retirement
				plan, qualified cash or deferred arrangement as defined in Internal Revenue
				Code §
										401(k), and
				employer contributions to nonqualified deferred compensation plans are
				generally included in the payroll factor.
4.
Employee.
"Employee" means
				any officer of a corporation or any individual who would be considered an
				employee under the common law rules governing the employer-employee
				relationship. Generally, an individual is considered to be an employee if the
				individual is included by the taxpayer as an employee for purposes of the
				payroll taxes imposed by the Federal Insurance Contributions Act ("FICA"). This
				presumption may be overcome by evidence provided by a taxpayer that an
				individual who is included as an employee for purposes of FICA would not be an
				employee of the taxpayer under the usual common law rules. Generally, an
				independent contractor is not considered an employee.
5.
Independent contractor.
"Independent contractor" means any individual who performs services for a
				taxpayer, but who is not an employee of the taxpayer, and who is not otherwise
				subject to the supervision or control of the taxpayer in the performance of the
				services.
6.
Payroll in
				states in which taxpayer is not taxable.
Compensation paid to employees
				whose services are performed entirely in a state where the taxpayer is immune
				from taxation, for example, by
				15 U.S.C. §
											381 et seq. (P.L. 86-272), is
				included in the denominator of the payroll factor.