ME – Remote sellers must collect Maine tax

Overriding Gov. Paul LePage’s veto, the Maine legislature enacted legislation requiring remote sellers to collect and remit sales tax on sales of tangible personal property, products transferred electronically or services that are delivered into Maine, and allowing the state to seek a judgment against remote sellers for uncollected tax, effective October 1, 2017. Remote sellers are excepted from this requirement, however, if:

  • the gross revenue from sales into Maine is $100,000 or less; or

  • the seller made less than 200 sales into Maine in a year.

A declaratory judgment action can be brought against remote sellers to establish the federal and state legal validity of the tax collection obligation, even if no audit or tax collection procedure was initiated against the remote seller. However, the court may impose an injunction against the state, preventing it from enforcing the obligation. Similarly, the state may move for such an injunction. An injunction will not be imposed on a remote seller that consents to paying the obligation or voluntarily collects Maine sales and use tax. If an injunction is lifted, the obligation to collect sales and use tax applies from that date forward for persons covered by the injunction. L.D. 1405 (S.P. 483), Laws 2017, effective as noted above