After months of deliberations, ICSC-supported e-fairness legislation will become law in Maine. ICSC worked closely with the Retail Association of Maine on LD 1405, an act to “Require Remote Sellers to Collect and Remit Sales and Use Tax on Sales into Maine and To Provide Retailers a Collection Allowance.”
At a May hearing before the Maine Legislative Taxation Committee, ICSC Maine Government Relations Committee Chairman Mitch Feeney submitted written testimony in support of the bill. Modeled after legislation in South Dakota, the Maine e-fairness law requires online retailers with at least $100,000 or more in sales or at least 200 transactions annually to collect and remit sales tax on eligible purchases made by Maine consumers.
In June the legislature approved LD 1405 and sent the bill to Governor Paul LePage, who vetoed the measure, writing that he didn’t want Maine to become “a national outlier and needlessly expose the state to litigation.” The Maine legislature, however, overwhelmingly voted (31-2 in the Senate and 119-25 in the House) to override Governor LePage’s veto.
The shopping center industry is critical to the Maine economy. In 2016, the shopping centers employed nearly 67,000 people in Maine (more than 10% of the total workforce). Additionally, shopping center retail sales totaled $8.1 billion and generated $444 million in sales tax revenue.
For more information on this law or other legislative or regulatory matters, please contact ICSC Eastern Division Government Relations Manager Stephen Burm at email@example.com.