Maine removing transaction nexus threshold

by Sarah Craig October 11, 2021

Back in June 2021, Maine Governor Janet Mills signed a bill that will remove the transaction threshold from the state’s economic nexus law pertaining to remote sellers. Prior to this change, remote sellers who conducted 200 transactions in the state were required to collect and remit sales tax in Maine, regardless of the amount of revenue generated from those transactions.

Once this amendment to the law goes into effect, the following are sellers required to collect and remit sales tax in the state of Maine: 

  • Sellers with a physical presence in Maine who sell property or provide taxable services in the state
  • Sellers with no physical presence in Maine but have gross sales tax exceed $100,000 in the state in the current or previous calendar year. 
  • Marketplace facilitators or sellers with gross sales that exceed $100,000 

This change will become effective on January 1, 2022, so for the remainder of 2021, the transaction count of 200 will remain in place. For more information on this, you can view the House Paper 891, part of an Act to Amend the State Tax Laws. The information on the Maine Revenue website continues to list the 200 transaction threshold, likely because it is still in effect until January 1, 2022. 

The basics of US sales tax

Learn the fundamentals of sales tax.

Watch the video