Maine: The Pine Tree State

Maine is located on the Atlantic coast in the northeastern United States. The state borders several Canadian provinces, but only one US state. This is a Maine unique selling point. A good 1.3 million people live on an area of ​​90,000 km². According to ehuacom, the capital of the Pine Tree State is Augusta.

Financial website Wallet Hub ranks Maine 13th nationally in the “place to start a business” category. According to US News, Portland is one of the ten most liveable metropolitan areas. A total of 150 were examined.

Maine Location Map

THERE’S A LOT TO BE SAID FOR MAINE

The relatively low cost of industrial and commercial real estate, proximity to nearly 20 percent of the US population in the Boston-Washington DC corridor, logistical convenience, and rich natural resources are strong arguments in favor of Maine.

The state is very open to new companies. Maine actively supports innovation, research and development, and workforce training. A close connection between companies and first-class educational and research institutions helps to turn ideas into reality. This path is accompanied by incubators, prototype tests and development facilities.

INTERNATIONAL COMPANIES AS ECONOMIC DRIVERS

Almost 370 international companies ensure a growing economy in the Pine Tree State. The state benefits from global investments and over 30 projects carried out by foreign companies. Approximately 37,000 local workers owe their jobs to the international companies based there. More than a quarter of this can be assigned to the processing industry. The increase in jobs created attributable to FDI is over 15 percent between 2013 and 2018. This number illustrates the increased global interest in Maine as a business location.

INTERMODAL TRANSPORT GUARANTEES HIGH EFFICIENCY

In intermodal transport, goods are transported between origin and destination using two or more modes of transport. For example, first by ship and then by truck. Maine boasts three active intermodal truck and rail facilities in Portland, Searsport and Auburn. There are also a number of locations where bulk material is transferred from railcars to trucks.

With Iceland’s largest shipping company, Eimskip, relocating to Portland in 2013 and the Port of Maine receiving a federal grant to fund improvements, the Pine Tree State is emerging as an international shipping hub.

GOOD REASONS FOR INVESTING IN KEY INDUSTRIES

The key industries to invest in have unique competitive niches and therefore a strong competitive advantage. The advanced materials and composites, food and beverage, forestry products and life sciences industries have been identified as key industries. Representatively, the conditions for advanced materials and composites are briefly presented.

Maine is home to leading advanced materials manufacturers and their aftermarkets, as well as smaller, specialty companies that excel in extreme applications, infrastructure, marine technologies and transportation.

The state’s textile heritage has led to the development of the next generation of advanced materials, ranging from flame retardant materials to fabrics with fiberglass and wood derivatives. Research institutes, training programs and educational institutions work together with industry and promote innovation.

MAINE INCOME TAX

Maine charges an income tax of 5.8 – 7.15% depending on income. In addition, federal income taxes are payable.

MAINE CORPORATE INCOME TAX

Maine has a corporate income tax rate of 8.93%. In addition, federal corporation tax is payable.

SALES TAX IN MAINE

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Maine

The sales tax in Maine is 5.5% at the state level. Municipalities or counties do not levy a sales tax.

Maine Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

July 1, 2018

Transactions included:

Gross sales of tangible personal effects* and taxable services supplied to US states

Treatment of tax-exempt transactions:

Exempted sales are included in the threshold; exempt services, on the other hand, are not included in the threshold value

Reason:

turnover or transaction volume

Sales/Transactions Threshold:

$100,000 or 200 transactions

Evaluation period:

Threshold applies to sales in the current or previous calendar year

Extra information:

  • Registration Requirements: Maine may require a remote business to register to collect, remit, and use sales tax once it crosses the Economic Nexus Threshold.
  • Maine Guide for Remote Sellers
  • LD1405 SP483
  • * Tangible personal property includes electronically transmitted property

Maine Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

October 1, 2019

Economic Nexus Threshold:

More than $100,000 in gross Maine sales or 200 or more separate transactions of tangible personal property, electronically delivered products, or taxable sales in the current or previous calendar year. When calculating the threshold:

  • Remote sellers should exclude sales through a bulk marketplace starting October 1, 2019
  • Marketplace moderators include all sales made through the marketplace

Registration requirements:

  • Remote Multichannel Sellers: You must register with Maine Revenue Services (MRS) and collect your Maine sales tax on sales not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Sellers: You do not need to register with MRS if you cross the Economic Nexus threshold and only sell through one or two bulk marketplaces; Contact MRS for more information.
  • In-State Multichannel Sellers: You must register MRS and collect tax on sales that are not taxed by a marketplace intermediary.
  • State Marketplace Sellers: You must register. Contact MRS for more information.