Maine Revised Statutes Title 36 Sec. 5200 – Imposition and rate of tax
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1. Imposition and rate of tax prior to 2018. For tax years beginning before January 1, 2018, a tax is imposed for each taxable year at the following rates on each taxable corporation and on each group of corporations that derives income from a unitary business carried on by 2 or more members of an affiliated group:
| If the income is: | The tax is: |
| Not over $25,000 | 3.5% of the income |
| $25,000 but not over $75,000 | $875 plus 7.93% of the excess over $25,000 |
| $75,000 but not over $250,000 | $4,840 plus 8.33% of the excess over $75,000 |
| $250,000 or more | $19,418 plus 8.93% of the excess over $250,000 |
In the case of an affiliated group of corporations engaged in a unitary business with activity taxable only by Maine, the rates provided in this subsection are applied only to the first $250,000 of the Maine net income of the entire group and must be apportioned equally among the taxable corporations unless those taxable corporations jointly elect a different apportionment. The balance of the Maine net income of the entire group is taxed at 8.93%.
In the case of an affiliated group of corporations engaged in a unitary business with activity taxable both within and without this State, the rates provided in this subsection are applied only to the first $250,000 of the net income of the entire group and must be apportioned equally among the taxable corporations unless those taxable corporations jointly elect a different apportionment. The balance of the net income of the entire group is taxed at 8.93%.
[PL 2017, c. 474, Pt. E, §1 (AMD).]
Terms Used In Maine Revised Statutes Title 36 Sec. 5200
- Affiliated group: means a group of 2 or more corporations in which more than 50% of the voting stock of each member corporation is directly or indirectly owned by a common owner or owners, either corporate or noncorporate, or by one or more of the member corporations. See Maine Revised Statutes Title 36 Sec. 5102
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means any business entity subject to income taxation as a corporation under the laws of the United States, except the following:
A. See Maine Revised Statutes Title 36 Sec. 5102Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Maine net income: means , for any taxable year for any corporate taxpayer, the taxable income of that taxpayer for that taxable year under the laws of the United States as modified by section 5200?A and apportionable to this State under chapter 821. See Maine Revised Statutes Title 36 Sec. 5102 Tax: means the total amount required to be paid, withheld and paid over or collected and paid over with respect to estimated or actual tax liability under this Title, any credit or reimbursement allowed or paid pursuant to this Title that is recoverable by the assessor and any amount assessed by the assessor pursuant to this Title, including any interest or penalties provided by law. See Maine Revised Statutes Title 36 Sec. 111 Taxable corporation: means , for any taxable year, a corporation that has nexus with this State pursuant to section 5200?B, including any corporation with income subject to federal tax under the Code, Section 1374 or 1375, and that has, at any time during that taxable year, realized Maine net income. See Maine Revised Statutes Title 36 Sec. 5102 Taxpayer: means any person required to file a return under this Title or to pay, withhold and pay over or collect and pay over any tax imposed by this Title. See Maine Revised Statutes Title 36 Sec. 111 Unitary business: means a business activity which is characterized by unity of ownership, functional integration, centralization of management and economies of scale. See Maine Revised Statutes Title 36 Sec. 5102 United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72 Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
1-A. Imposition and rate of tax beginning 2018. For tax years beginning on or after January 1, 2018, a tax is imposed for each taxable year at the following rates on each taxable corporation and on each group of corporations that derives income from a unitary business carried on by 2 or more members of an affiliated group:
| If the income is: | The tax is: |
| Not over $350,000 | 3.5% of the income |
| $350,000 but not over $1,050,000 | $12,250 plus 7.93% of the excess over $350,000 |
| $1,050,000 but not over $3,500,000 | $67,760 plus 8.33% of the excess over $1,050,000 |
| $3,500,000 or more | $271,845 plus 8.93% of the excess over $3,500,000 |
In the case of an affiliated group of corporations engaged in a unitary business with activity taxable only by Maine, the rates provided in this subsection are applied only to the first $3,500,000 of the Maine net income of the entire group and must be apportioned equally among the taxable corporations unless those taxable corporations jointly elect a different apportionment. The balance of the Maine net income of the entire group is taxed at 8.93%.
In the case of an affiliated group of corporations engaged in a unitary business with activity taxable both within and without this State, the rates provided in this subsection are applied only to the first $3,500,000 of the net income of the entire group and must be apportioned equally among the taxable corporations unless those taxable corporations jointly elect a different apportionment. The balance of the net income of the entire group is taxed at 8.93%.
[PL 2017, c. 474, Pt. E, §2 (NEW).]
2. Business activity only within Maine. For purposes of subsections 1 and 1?A, with respect to a taxable corporation or group of corporations that derive income from a unitary business carried on by 2 or more members of an affiliated group with income from business activity that is taxable only by Maine, “income” means Maine net income.
[PL 2017, c. 474, Pt. E, §3 (AMD).]
3. Business activity within and outside Maine. For purposes of subsections 1 and 1?A, with respect to a taxable corporation with income from business activity that is taxable both within and without this State, “income” means the corporation’s net income. The tax amount computed under subsections 1 and 1?A must then be apportioned under the provisions of chapter 821 to determine the amount of tax imposed on that corporation.
[PL 2017, c. 474, Pt. E, §3 (AMD).]
4. Business activity within and outside Maine; unitary business. For purposes of subsections 1 and 1?A, with respect to taxable corporations that derive income from a unitary business carried on by 2 or more members of an affiliated group with business activity that is taxable both within and without this State, “income” means the net income of the entire group. The tax amount computed under subsections 1 and 1?A must then be apportioned under the provisions of chapter 821 for the entire group to determine the amount of tax imposed on the taxable corporations.
[PL 2017, c. 474, Pt. E, §3 (AMD).]
5. Net income. For purposes of this section, “net income” means, for any taxable year, the taxable income of the taxpayer for that taxable year under the laws of the United States as modified by section 5200?A.
[PL 2005, c. 457, Pt. FFF, §1 (NEW); PL 2005, c. 457, Pt. FFF, §2 (AFF).]
6. Taxable in another state. For purposes of this section, a taxpayer is taxable in another state if in that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
[PL 2005, c. 457, Pt. FFF, §1 (NEW); PL 2005, c. 457, Pt. FFF, §2 (AFF).]
SECTION HISTORY
P&SL 1969, c. 154, §F1 (NEW). PL 1973, c. 580, §2 (AMD). PL 1973, c. 592, §21 (RPR). PL 1973, c. 788, §193 (RPR). PL 1977, c. 686, §12 (RPR). PL 1981, c. 706, §39 (RPR). PL 1983, c. 477, Pt. F, Subpt. 3, §1 (RPR). PL 1985, c. 675, §§1,5 (AMD). PL 2001, c. 396, §35 (AMD). PL 2005, c. 457, §FFF1 (RPR). PL 2005, c. 457, §FFF2 (AFF). PL 2005, c. 618, §6 (AMD). PL 2005, c. 618, §22 (AFF). PL 2017, c. 474, Pt. E, §§1-3 (AMD).