Income / Franchise Tax - Maine: New law adopts "Finnigan" type rule for sales factor / "throwout" rule purposes

L.D. 1671, signed by gov. 3/31/10. Effective immediately and applicable to income tax years beginning on or after January 1, 2010, new law states that for purposes of calculating the sales factor for state corporate income tax apportionment purposes, "total sales of the taxpayer" includes sales of the taxpayer and of any member of an affiliated group with which the taxpayer conducts a unitary business.

For purposes of the sales factor "throwout" rule, the new law also states that the sales factor must exclude from both the numerator and the denominator sales of tangible personal property delivered or shipped by the taxpayer (regardless of F.O.B. point or other conditions of the sale) to a purchaser within a state in which the taxpayer is not taxable, unless any member of an affiliated group with which the taxpayer conducts a unitary business is taxable in that state.