18- 125 C.M.R. ch. 808, § .04 - CORPORATE INCOME TAX NEXUS; TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 2022

For tax years beginning on or after January 1, 2022, a corporation has income tax nexus with Maine if it:

A. Is organized or commercially domiciled in Maine; or

B. Is organized or commercially domiciled outside Maine, and the corporation's Maine property, payroll or sales exceed any of the following thresholds for the taxable year:

1. Property of $250,000;

2. Payroll of $250,000;

3. Sales of $500,000; or

4. Twenty-five percent of the corporation's total property, payroll, or sales.

Maine property, payroll, and sales are calculated in the same manner used to determine income apportionment under 36 M.R.S., chapter 821 and rules adopted by the Assessor, except that the sales calculation does not exclude sales of tangible personal property under 36 M.R.S. § 5211(14)(B). For a taxpayer permitted or required to use a special apportionment method under 36 M.R.S. § 5211(17), the property, payroll, and sales used to determine nexus under this rule must be consistent with the property, payroll, and sales used for the special apportionment method.

A corporation that holds an interest directly or indirectly in a partnership has nexus with Maine if the partnership is organized or commercially domiciled in Maine or if the partnership is organized or commercially domiciled outside Maine and the partnership's property, payroll, or sales exceed the thresholds established in subsection B of this section.

Notes

18- 125 C.M.R. ch. 808, § .04