Taxbyte: Maine’s Economic Nexus Transaction Count Threshold To Be Removed January 1st, 2022

by | Jun 24, 2021 | Tax Bytes

Effective January 1st, 2022, Maine will be removing its transaction count threshold from its economic nexus law. Remote businesses without any other presence in the state will only need to begin collecting if they cross the $100,000 sales threshold. This is good news for businesses because it will protect small businesses from needing to collect and remit sales tax in Maine.

Governor Janet Mills signed House Paper 891, An Act To Amend the State Tax Laws, into law on June 11, 2021, resulting in this change. The transaction threshold isn’t mentioned in the bill; it was merely removed from the section titled “Persons needed to register.”

Entities required to register, collect, and remit sales tax in Maine as of January 1, 2021 include, but are not limited to:

  • Every person with a substantial physical presence in Maine who sells tangible personal property or taxable services in the state (including marketplace sellers and marketplace facilitators)

  • Every person with no physical presence in Maine whose sales of tangible personal property or taxable services into the state in the current or calendar year exceed $100,000 (including marketplace sellers whose direct sales exceed the threshold)

  • A marketplace facilitator with no physical presence in Maine whose gross sales of tangible personal property or taxable services into the state in the previous calendar year or current calendar year exceed $100,000 (a marketplace facilitator’s gross sales include their direct sales and sales facilitated on behalf of marketplace sellers)

 The Maine Department of Revenue has not yet updated its FAQ page yet, but we expect their FAQ will be updated before the end of 2021.

As always, feel free to contact TaxValet if you are looking for help eliminating the hassle and stress of sales tax.

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Disclaimer: Our attorney wanted you to know that no financial, tax, legal advice or opinion is given through this post. All information provided is general in nature and may not apply to your specific situation and is intended for informational and educational purposes only. Information is provided “as is” and without warranty.

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