Effective July 1, 2018, Maine joined several states in response to the Supreme Court’s Wayfair case by requiring remote sellers to collect sales tax when certain economic thresholds are met. In Wayfair, the Supreme Court of the United States reversed the longstanding “physical presence” rule that it had established in the 1992 case of Quill v. North Dakota.
Sellers who have a gross revenue of more than $100,000 from sales in the state or at least 200 transactions in the state must collect and remit sales tax as of the effective date of July 1, 2018. Maine requires a person selling tangible personal property, products transferred electronically, or taxable services for delivery into the state to collect and remit sales tax in the same manner as a retailer with a physical presence in the state.
To register to remit sales tax in Maine you will need to be a registered business within the state. The Maine Revenue Services website offers detailed instructions on how to register online. Alternatively, you may file via mail by submitting the provided application. Once registered, taxpayers can file and pay their taxes online or complete the Long Sales Tax Return form. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.
Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. For more information please call us at 888-966-8216.