Maine – Rapid Disaster Response Exemptions

SALT Report 1483 – The Maine State Legislature recently enacted legislation that provides an exemption from sales and use taxes and income taxes for businesses that are located outside the state and assist Maine during a major disaster or state of emergency.
Beginning with the 2012 tax year, the following exemptions will apply when the services are requested by Maine, a county, city, town or political subdivision of Maine or a registered business:
  • Sales and use tax will not be due on property brought into Maine during the disaster period if used to perform activities related to the disaster;
  • Personal or business income for a nonresident is exempt from income tax if the nonresident is in Maine only to provide services or conduct business during a disaster period and the income is related to the disaster, and
  • The numerator of the sales factor for income apportionment does not include the sales receipts of a person who is only performing services during a disaster period that are solely and directly related to the disaster

Following the disaster period, which ends 60 days after the disaster or emergency is over, all exemptions end.  Businesses entering Maine during a disaster period are required to notify the secretary of state of any intent to do business in Maine after the disaster period has ended. The legislation also requires businesses remaining in Maine to meet all registration, licensing and filing requirements for doing business in Maine.

For Further Information:

Maine State Legislature – HP 1357