Looking for a Maine Tax Forms And Templates? Download it for free!

MAINE TAX ALERT

A Publication of Maine Revenue Services for Tax Professionals

Volume 10, No. 1

January/February 2000

Public Communications Tel: (207) 287-6838

Problem Solving Day

Maine Revenue Services (MRS) and the Internal Revenue Service (IRS) will be holding a Problem

Solving Day on Thursday, March 23, 2000 at the IRS office at 324 Harlow Street, Bangor, Maine from

12:00 pm to 6:00 pm. The day is designed to assist taxpayers that have any type of problem with either

agency. Advance appointments are preferred but walk-ins will be welcome. To make an appointment

with the IRS contact Sue Horsford at 207-622-8402. To make an appointment with MRS contact Bruce

Livingston at 207-287-4562.

Internet Purchases Still Subject to Sales and Use Tax

Businesses purchasing taxable goods via the Internet should be aware that Maine sales and use

taxes still apply to these transactions. This is not a new tax policy, but is covered under existing

Maine laws that include all remote sales transactions like mail order, TV shopping channels,

phone shopping, etc.

Anyone who purchases taxable goods or services for use in Maine and does not pay Maine sales

tax must pay the use tax. When a purchase is made and Maine sales or use tax is not paid to the

retailer, the use tax must be paid by the purchaser directly to MRS. The use tax, like the sales

tax, applies to any purchase of taxable goods or services for use in this state, except purchases

made for the purpose of resale.

Use tax applies to the purchase of assets. It also applies to the purchase of goods such as office

supplies, paper, stationery items, packaged software, and books that are used by the business.

Taxable goods and services that are used in carrying on a business are being consumed by the

business, and the tax must be reported and paid on them.

MRS Proposes Amendment to Rule 808

Rule 808 describes the circumstances under which an out-of-state corporation is subject to the income tax

jurisdiction of Maine under Title 36 M.R.S.A., Section 5200. The rule currently states that the activities

of an independent contractor will not be imputed to the foreign corporation. This statement is

inconsistent with general rule stated in section .02 of the rule: "The State Tax Assessor construes Maine

law to assert the tax jurisdiction of Maine to the full extent permitted by the Constitution and laws of the

United States." The proposed change would provide that the activities in Maine of an independent

contractor on behalf of a foreign corporation will be imputed to the corporation if they are significantly

associated with that corporation's ability to establish and maintain a market in Maine, to the extent

Form 2333c-Me - 2000 Withholding Tax And Unemployment Contribution Form - Order Form - Maine Revenue Services