The Maine legislature recently enacted a bill that amends the definition of tangible personal property to include any product that is electronically transferred. The bill also modifies the current affiliate nexus provisions with the rebuttable presumption used in other states’ affiliate nexus legislation.

The expanded definition of tangible personal property, which includes electronically transferred products is a further expansion of the sales tax base coming less than a year after Maine extended the tax base to digital products transferred electronically.  On June 26, 2013, the legislature expanded the tax base to include “product[s] transferred electronically,” which was defined as “digital product[s] transferred to the purchaser electronically the sale of which in non-digital physical form would be subject to tax … as a sale of tangible personal property.”  The term “digital product” was not defined in the amended laws.

Now, Maine has gone a step further by expanding the definition of tangible personal property to include any product transferred electronically, not just “digital products.”