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02. When Does Maine Have Jurisdiction to Impose a Tax on a Corporation?

When a corporation’s presence or connection with a state reaches a certain level, the corporation is said to have “nexus” with the state, subjecting the corporation to the state’s income tax laws. Nexus with Maine is generally created by physical presence, or by conducting business in Maine, or by owning or using property in Maine. Maine Revenue Services Rule 808 provides detailed criteria about activities that create Maine nexus. A determination about whether or not a corporation has nexus with Maine must be made in light of all of the relevant facts. If you need assistance determining whether or not a corporation has nexus with Maine, you may complete a nexus questionnaire and send it to Maine Revenue Services with a cover letter that identifies who Maine Revenue Services should contact for more information. You must enter a response to every question. The questionnaire is available on Maine Revenue Services website at http://www.maine.gov/revenue/incomeestate/nexus.pdf

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