§ 36 §5142 — Adjusted gross income from sources in this State

Maine § 36 §5142

• Jurisdiction: Maine
• Title 36: TAXATION
• Part 8: INCOME TAXES
• Ch. 807: COMPUTATION OF TAXABLE INCOME OF NONRESIDENT INDIVIDUALS

Text

1.
General.
The Maine adjusted gross income of a nonresident individual derived from or connected with sources in this State is the sum of the following amounts:
2.
Attribution.
Items of income, gain, loss, and deduction derived from or connected with sources within this State are those items attributable to:
3.
Intangibles.
Income from intangible personal property including annuities, dividends, interest and gains from the disposition of intangible personal property, shall constitute income derived from sources within this State only to the extent that such income is from property employed in a business, trade, profession, or occupation carried on in this State.
3-A.
Gain or loss on sale of partnership interest.
Notwithstanding subsection 3, the gain or loss on the sale of a partnership interest is sourced to this State in an amount equal to the gain or loss multiplied by the ratio obtained by dividing the original cost of partnership tangible property located in Maine by the original cost of partnership tangible property everywhere, determined at the time of the sale. Tangible property includes property owned or rented and is valued in accordance with section 5211, subsection 10. If more than 50% of the value of the partnership's assets consists of intangible property, gain or loss from the sale of the partnership interest is sourced to this State in accordance with the sales factor of the partnership for its first full tax period immediately preceding the tax period of the partnership during which the partnership interest was sold. For purposes of this subsection, the sales factor of a partnership is determined in accordance with section 5211, subsection 14, subsection 15 and subsection 16‑A, paragraphs A to E. This subsection does not apply to the sale of a limited partner's interest in an investment partnership where more than 80% of the value of the partnership's total assets consists of intangible personal property held for investment, except that such property cannot include an interest in a partnership unless that partnership is itself an investment partnership.
4.
Deductions for losses.
Deductions with respect to capital losses, net long-term capital gains, and net operating losses shall be based solely on income, gains, losses and deductions derived from or connected with sources in this State, under regulations to be prescribed by the assessor but otherwise shall be determined in the same manner as the corresponding federal deductions.
5.
Small business corporation.
6.
Apportionment.
If a business, trade, profession or occupation is carried on partly within and partly without this State, the items of income and deduction derived from or connected with sources within this State shall be determined as apportioned to this State under chapter 821 or in the case of the rendering of purely personal services by an individual under regulations to be prescribed by the assessor.
7.
Service in Armed Forces.
Compensation paid by the United States for service in the Armed Forces of the United States performed by a nonresident shall not constitute income derived from sources within this State.
8.
Minimum taxability threshold.
8-A.
Minimum taxability threshold.
8-B.
Minimum taxability threshold; exemptions.
Minimum taxability thresholds for nonresidents are governed by this subsection.
9.
Compensation for work under interlocal agreement.
Compensation received as an employee of a political subdivision of an adjoining state performing service in this State pursuant to an interlocal agreement under Title 30‑A, chapter 115 is not considered income derived from sources within this State as long as the performance of the service under the interlocal agreement does not displace an employee currently performing the service who is a resident of this State.

Legislative History

P&SL 1969, c. 154, §F1 (NEW). PL 1981, c. 706, §§37,38 (AMD). PL 1987, c. 841, §3 (AMD). PL 1993, c. 478, §1 (AMD). PL 1999, c. 521, §B2 (AMD). PL 1999, c. 521, §B11 (AFF). PL 2003, c. 391, §6 (AMD). PL 2003, c. 673, §E1 (AMD). PL 2003, c. 673, §E3 (AFF). PL 2005, c. 12, §§LLLL1,2,MMMM1 (AMD). PL 2005, c. 12, §MMMM3 (AFF). PL 2005, c. 332, §§20-22 (AMD). PL 2005, c. 332, §30 (AFF). PL 2007, c. 240, Pt. V, §1 (AMD). PL 2007, c. 627, §83 (AMD). PL 2009, c. 434, §71 (AMD). PL 2009, c. 434, §85 (AFF). PL 2011, c. 130, §1 (AMD). PL 2011, c. 130, §2 (AFF). PL 2011, c. 240, §32 (AMD). PL 2011, c. 380, Pt. CCCC, §§1, 2 (AMD). PL 2011, c. 380, Pt. CCCC, §4 (AFF). PL 2011, c. 548, §25 (AMD). PL 2011, c. 548, §36 (AFF). PL 2011, c. 622, §5 (AMD). PL 2011, c. 622, §7 (AFF). PL 2019, c. 401, Pt. C, §6 (AMD). PL 2019, c. 401, Pt. C, §16 (AFF).