Maine Passes Click-Through Nexus Law
- Jun 7, 2013 | Gail Cole
Maine isn't waiting for federal lawmakers to approve the nexus.
Under the new Chapter 200: "A seller is presumed to be engaged in the business of selling tangible personal property or taxable services for use in this State if an affiliated person has a substantial physical presence in this State or if any person, other than a person acting in its capacity as a common carrier, that has a substantial physical presence in this State:"
- Sells a similar line of products, under a similar name;
- Maintains any 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 use 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; or
- 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.
Any seller meeting the above requirements must register with the Maine tax assessor and collect and remit taxes to the state.
Furthermore, sellers are presumed to be engaged in the business of selling tangible personal property or taxable services in Maine if the sellers enter into an agreement with a person in Maine, for a commission or other consideration, and:
- The person "directly or indirectly refers potential customers, whether by a link on an Internet website, by telemarketing, by an in-person presentation or otherwise, to the seller;" and
- "The cumulative gross receipts from retail sales by the seller to customers in the State who are referred to the seller by all persons with this type of an agreement with the seller are in excess of $10,000 during the preceding 12 months."
In such cases, sellers must register with the tax assessor and collect and remit taxes.
Sellers may submit a rebuttal, along with proof.
This legislation also authorizes the Office of Fiscal and Program Review to "prepare a report concerning the Streamlined Sales and Use Tax Agreement."
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