Maine Revised Statutes Title 36 Sec. 5200-B – Corporate income tax nexus
Current as of: 2023 | Check for updates
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1. Nexus established. A corporation has nexus with this State, for the purposes of the tax imposed under section 5200, if that corporation:
A. Is organized or commercially domiciled in this State; or [PL 2021, c. 181, Pt. E, §2 (NEW).]
B. Is organized or commercially domiciled outside this State, if the corporation’s property, payroll or sales, as calculated pursuant to subsection 2, in this State exceed any of the following thresholds for the taxable year:
(1) For property, $250,000;
(2) For payroll, $250,000;
(3) For sales, $500,000; or
(4) Twenty-five percent of the corporation’s property, payroll or sales. [PL 2021, c. 181, Pt. E, §2 (NEW).]
[PL 2021, c. 181, Pt. E, §2 (NEW).]
Terms Used In Maine Revised Statutes Title 36 Sec. 5200-B
- Code: means the United States Internal Revenue Code of 1986 and amendments to that Code as of December 31, 2022. See Maine Revised Statutes Title 36 Sec. 111
- 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. Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses. Personal property: All property that is not real property. 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 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 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
2. Property, payroll and sales defined; calculation. For purposes of this section, property, payroll and sales are calculated as provided under chapter 821 and associated rules adopted by the assessor, except that the sales calculation does not exclude sales of tangible personal property under section 5211, subsection 14, paragraph B. For a taxpayer permitted or required to use a special apportionment method under section 5211, subsection 17, the property, payroll and sales used to determine nexus under this section must be consistent with the property, payroll and sales used for the special apportionment method.
[PL 2021, c. 181, Pt. E, §2 (NEW).]
3. Corporate partners. A corporation that holds an interest directly or indirectly in a partnership has nexus with this State if the partnership is organized or commercially domiciled in this State or if the partnership’s property, payroll or sales, as calculated pursuant to subsection 2, in this State exceed any of the thresholds in subsection 1, paragraph B.
[PL 2021, c. 181, Pt. E, §2 (NEW).]
4. Federal protection. A state that is without jurisdiction to impose a tax on the net income of a taxpayer because that taxpayer comes under the protection of 15 United States Code §§ 381 to 384, does not gain jurisdiction to impose such a tax because the taxpayer’s property, payroll or sales in the State exceed a threshold established in subsection 1.
[PL 2021, c. 181, Pt. E, §2 (NEW).]
SECTION HISTORY
PL 2021, c. 181, Pt. E, §2 (NEW).