An Act Regarding the Collection of the Sales and Use Tax by Marketplace Facilitators
Sec. 1. 36 MRSA §1752, sub-§6-E, 6-F and 6-G are enacted to read:
(1) Fulfillment or storage services;
(2) Customer service; or
(3) Accepting or assisting with returns or exchanges.
For the purposes of this subsection, "affiliated person" means a person that, with respect to another person, has a direct or indirect ownership interest of more than 5% in the other person or is related to the other person because a 3rd person, or group of 3rd persons who are affiliated persons, holds a direct or indirect ownership interest of more than 5% in the related person.
A marketplace facilitator does not include a public utility as defined in Title 35-A, section 102.
Sec. 2. 36 MRSA §1754-B, sub-§1, as amended by PL 2017, c. 375, Pt. A, §§4 and 5, is repealed.
Sec. 3. 36 MRSA §1754-B, sub-§1-A, as amended by PL 2013, c. 546, §10, is further amended to read:
(1) "Affiliated person" means a person that is a member of the same controlled group of corporations as the seller or any other entity that, notwithstanding its form of organization, bears the same ownership relationship to the seller as a corporation that is a member of the same controlled group of corporations. For purposes of this subparagraph, “controlled group of corporations” has the same meaning as in the Code, Section 1563(a).
(2) "Person" means an individual or entity that qualifies as a person under the Code, Section 7701(a)(1).
(3) "Seller" means a person that sells, other than in a casual sale, tangible personal property or taxable services.
(1) Sells a similar line of products as the seller and does so under a business name that is the same as or similar to that of the seller;
(2) Maintains an office, distribution facility, warehouse or storage place or similar place of business in the State to facilitate the delivery of property or services sold by the seller to the seller's customers;
(3) Uses trademarks, service marks or trade names in the State that are the same as or substantially similar to those used by the seller;
(4) Delivers, installs, assembles or performs maintenance services for the seller's customers within the State;
(5) Facilitates the seller's delivery of property to customers in the State by allowing the seller's customers to pick up property sold by the seller at an office, distribution facility, warehouse, storage place or similar place of business maintained by the person in the State; or
(6) Conducts any activities in the State that are significantly associated with the seller's ability to establish and maintain a market in the State for the seller's sales.
A seller who meets the requirements of this paragraph shall register with the assessor and collect and remit taxes in accordance with the provisions of this Part. A seller may rebut the presumption created in this paragraph by demonstrating that the person's activities in the State are not significantly associated with the seller's ability to establish or maintain a market in this State for the seller's sales.
(1) 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
(2) 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.
A seller who meets the requirements of this paragraph shall register with the assessor and collect and remit taxes in accordance with the provisions of this Part.
A seller may rebut the presumption created in this paragraph by submitting proof that the person with whom the seller has an agreement did not engage in any activity within the State that was significantly associated with the seller's ability to establish or maintain the seller's market in the State during the preceding 12 months. Such proof may consist of sworn, written statements from all of the persons within this State with whom the seller has an agreement stating that they did not engage in any solicitation in the State on behalf of the seller during the preceding 12 months; these statements must be provided and obtained in good faith.
A person who enters into an agreement with a seller under this paragraph to refer customers by a link on an Internet website is not required to register or collect taxes under this Part solely because of the existence of the agreement.
Sec. 4. 36 MRSA §1754-B, sub-§§1-B and 1-C are enacted to read:
(1) Every person that makes sales of tangible personal property or taxable services, whether or not at retail, that maintains in this State any office, manufacturing facility, distribution facility, warehouse or storage facility, sales or sample room or other place of business;
(2) Every person that makes sales of tangible personal property or taxable services that does not maintain a place of business in this State but makes retail sales in this State or solicits orders, by means of one or more salespeople within this State, for retail sales within this State; and
(3) Every lessor engaged in the leasing of tangible personal property located in this State that does not maintain a place of business in this State but makes retail sales to purchasers from this State;
(1) The person's gross sales from delivery of tangible personal property or taxable services into this State in the previous calendar year or current calendar year exceeds $100,000; or
(2) The person sold tangible personal property or taxable services for delivery into this State in at least 200 separate transactions in the previous calendar year or the current calendar year;
(1) The marketplace facilitator's gross sales from delivery of tangible personal property or taxable services into this State in the previous calendar year or current calendar year exceeds $100,000; or
(2) The marketplace facilitator sold or facilitated sales of tangible personal property or taxable services for delivery into this State in at least 200 separate transactions in the previous calendar year or the current calendar year.
For the purposes of this paragraph, the marketplace facilitator's gross sales and total number of transactions include sales facilitated on behalf of marketplace sellers and any sales of tangible personal property or taxable services made directly by the marketplace facilitator.
Sec. 5. 36 MRSA §1759, as amended by PL 2017, c. 375, Pt. H, §1, is further amended to read:
§ 1759. Bonds
Either as a condition for issuance or subsequent to the issuance of a registration certificate under section 1754-B , or 1756 or 1951-B, the State Tax Assessor may require from a taxpayer a bond written by a surety company qualified to do business in this State, in an amount and upon conditions to be determined by the assessor. In lieu of a bond the assessor may accept a deposit of money or securities in an amount and of a kind acceptable to the assessor. The deposit must be delivered to the Treasurer of State, who shall safely keep it subject to the instructions of the assessor.
Sec. 6. 36 MRSA §1861-A, as amended by PL 2007, c. 240, Pt. W, §1 and affected by §2, is further amended to read:
§ 1861-A. Reporting use tax on individual income tax returns
The assessor shall provide that individuals report use tax on items with a sale price of $5,000 or less on their Maine individual income tax returns. Taxpayers are required to attest to the amount of their use tax liability for the period of the tax return. Alternatively, they may elect to report an amount that is .08% .04% of their Maine adjusted gross income. A taxpayer electing to satisfy a use tax liability by estimating it shall calculate the liability in accordance with the use tax table. The estimated liability is applicable only to purchases of any individual items each having a sale price no greater than $1,000. For each taxable item with a sale price greater than $1,000 but no more than $5,000, the actual use tax liability for each purchase must be added to the amount of the estimated liability derived from the use tax table. Upon subsequent review, if use tax liability for the period of the return exceeds the amount of use tax paid with the return, a credit of that amount paid relative to the item or items being supplementarily assessed is allowed. Use tax on any item with a sale price of more than $5,000 must be reported in accordance with section 1951-A.
Sec. 7. 36 MRSA §1951-B, as enacted by PL 2017, c. 245, §1 and affected by §2, is repealed.
Sec. 8. 36 MRSA §1951-C is enacted to read:
§ 1951-C. Collection of tax by marketplace facilitators and marketplace sellers
This section governs the collection, reporting and remittance of sales and use tax by marketplace facilitators and marketplace sellers.
Sec. 9. Application date. This Act applies to sales occurring on or after October 1, 2019, except that the section of this Act that amends the Maine Revised Statutes, Title 36, section 1861-A applies to tax years beginning on or after January 1, 2019.