Maine Sales Tax Applies to Products Transferred Electronically

Maine’s budget bill has been enacted, creating provisions for taxing products transferred electronically. Effective June 26, 2013, Maine sales tax applies to “products transferred electronically.” A “product transferred electronically” is a digital product transferred to a purchaser electronically, the sale of which in non-digital physical form would be subject to tax as a sale of tangible personal property. A “product transferred electronically” is sold in Maine if the product is delivered electronically to a purchaser located in Maine; the product is received by the purchaser at the seller’s location in Maine; a Maine billing address is provided by the purchaser in connection with the transaction; or a Maine billing address is indicated in the seller’s business records. (L.D. 1509 (H.P. 1079), Laws 2013)