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Maine House Embraces Internet Sales Tax

  • Jun 4, 2013 | Gail Cole

 Maine lawmakers want online sales tax revenue.

Most Maine lawmakers want the state to collect online sales tax. The House recently voted 128-10 in favor of legislation that would “require the collection of sales tax by any business making sales to persons in Maine.” L.D. 346 now returns to the Senate, where it previously received unanimous support.

This is not the first time lawmakers in Maine have tried to enact remote sales tax legislation, but their efforts have been stymied by the governor. Earlier this year, Governor Paul LePage (R) Streamlined Sales and Use Tax Agreement (SST)…” He cited concerns that the state would become bogged down in bureaucracy if it joined SST.

Yet Governor LePage supports the Marketplace Fairness Act of 2013, noting that it “has particular merit for the people of Maine.” He believes that “unequal taxation between various sales channels… is best addressed at the federal level ….” Such an attitude doesn’t bode well for L.D. 346.

Under L.D. 346, the Office of Fiscal and Program Review would examine the Streamlined Sales and Use Tax Agreement and identify “options available to Maine” should the Marketplace Fairness Act of 2013 be adopted. Streamlined states are well situated to take advantage of federal remote sales tax legislation if it passes. Currently, Maine’s sales tax laws “don’t conform to the terms of the agreement.”

Whether it joins SST or not, Maine will have to simplify its tax laws in order to take advantage of Marketplace Fairness as it is currently written.

Is your business prepared for online sales tax, in Maine and elsewhere?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.