# Maine economic nexus threshold

Maine's economic nexus threshold is $100,000 in sales.

## Included transactions:
- Retail sales of tangible personal property delivered into Maine
- Both taxable and exempt sales count toward the $100,000 threshold
- Taxable services and digital products sourced to Maine

## Excluded transactions:
- Sales made through a registered marketplace facilitator collecting and remitting Maine tax on the business's behalf
- Wholesale sales with a valid exemption certificate

## Affiliate nexus

Maine's affiliate nexus provision was fully repealed effective January 1, 2022 by [PL 2021, c. 181](https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0891&item=3&snum=130). The prior rebuttable presumption of nexus based on affiliate or agent relationships no longer applies. As of January 1, 2022, Maine nexus is determined solely by physical presence or economic activity.

## Physical nexus

Physical nexus in Maine is established under [36 M.R.S.A. § 1754-B](https://legislature.maine.gov/legis/statutes/36/title36sec1754-B.html) and Maine Revenue Services [Instructional Bulletin No. 43](https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/IB43_FINAL_Registration_of_Sellers_2024_08_19.pdf). A business with any office, manufacturing facility, distribution facility, warehouse, storage facility, or sales or sample room in Maine has physical nexus. The presence of employees or salespeople soliciting orders within Maine also creates nexus, as does storing [inventory or tangible personal property physically in Maine](https://www.maine.gov/revenue/sites/maine.gov/revenue/files/inline-files/IB43_FINAL_Registration_of_Sellers_2024_08_19.pdf), including property leased or rented to Maine customers. Operating company-owned delivery vehicles  in Maine and using third-party carriers other than interstate common carriers for in-state deliveries are additional triggers. Safe harbors that do not create physical nexus include attending trade shows in Maine, maintaining a Maine bank account, and using Maine-based printing vendors.

## Trailing nexus

Maine achieves functionally equivalent trailing nexus through its [registration cancellation policy](https://legislature.maine.gov/legis/statutes/36/title36sec1754-B.html). A registered remote seller or marketplace facilitator may only cancel its sales tax registration once gross sales have not exceeded $100,000 for two consecutive calendar years following initial registration. A business that exceeded the threshold in Year 1 and drops below it in Years 2 and 3 is not eligible to deregister until the start of Year 4.

### Economic Nexus Threshold:
$100,000 in gross sales only

### Effective Date:
July 1, 2018

### Evaluation Period:
Current or prior calendar year

### Previous Threshold Rules:
$100,000 in sales OR 200 transactions from July 1, 2018 through December 31, 2021. The 200-transaction prong was eliminated effective January 1, 2022 by PL 2021, c. 181.

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