Maine Tax Nexus

Businesses with nexus in Maine are required to register with the Maine Revenue Services and to charge, collect, and remit the appropriate tax.

Generally, a business has nexus in Maine when it has a substantial physical presence in the state, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.

Maine nexus for out-of-state sellers

Affiliate nexus

If your business has ties to businesses in Maine, including affiliates, it may have nexus under the state’s affiliate nexus law. Sellers of tangible personal property or taxable services are presumed to be engaged in business in Maine if an affiliated person has a substantial physical presence in Maine, or if any person (other than those acting as a common carrier) with a substantial physical presence in Maine engages in any of the following activities:

  • Sells a similar line of products under a similar name
  • Maintains a place of business in Maine that facilities the delivery of property or services sold by the seller
  • Uses trademarks, trade names or service marks similar to, or the same as, those used by the seller
  • Delivers, installs, or provides maintenance services for the seller’s customers in Maine
  • Facilitates the seller’s delivery of property to customers in Maine
  • Conducts any activities in Maine that are significantly associated with the seller’s ability to establish and maintain a market in the State for the seller’s sales

Click-through nexus 

Referrals from in-state entities may also trigger nexus for an out-of-state company. Out-of-state sellers of tangible personal property or taxable services are presumed to be engaged in business in Maine if they enter into an agreement with a person in Maine for a commission or other consideration and both of the following are true:

  • The Maine affiliate directly or indirectly refers potential customers to the seller, by a link on an internet website, telemarketing, an in-person presentation or other method
  • The cumulative gross receipts from the preceding 12 months from retail sales by the seller to Maine customers referred by affiliates exceed $10,000

See Sales Tax Reference Guide, H.P. 251, and Maine Revised Statutes, Title 36 §1754 A and B.