Sec. 1. 36 MRSA §5142, sub-§8, śC is enacted to read:

C.__For purposes of this subsection, "personal services" does not include the following:

(1)__Personal services performed in connection with presenting or receiving training or education; and

(2)__Personal services performed in connection with a site inspection, review, analysis of management or any other supervision of a Maine-based affiliate or subsidiary by a representative from a parent company not headquartered in this State.

The performance of the personal services described in subparagraphs (1) and (2) may not be counted towards the 10- day threshold.

Sec. 2. 36 MRSA §5220, sub-§2, as amended by PL 2003, c. 673, Pt. E, §2 and affected by §3, is further amended to read:

2. Nonresident individuals. Every nonresident individual who, pursuant to this Part, has a Maine individual income tax liability for the taxable year. An individual whose only Maine- source income is compensation for personal services performed in Maine that is excluded from Maine adjusted gross income by the threshold contained in section 5142, subsection 8 is not subject to taxation under this Part and need not file a return;

SUMMARY

Current law requires a nonresident who performs personal services in Maine for more than 10 days per year to pay tax on income from the performance of those services.

This bill exempts from Maine income tax the personal services performed by a nonresident in connection with training or education or in connection with a site inspection, review, analysis of management or any other supervision of a Maine-based affiliate or subsidiary by a representative from a parent company not headquartered in Maine.