--- title: "Maine marketplace facilitator law and 1099-K rules" description: "Maine marketplaces collect sales tax for sellers since Oct 1, 2019, but a seller with a physical presence in Maine must register regardless of sales." canonical: https://resellerindex.com/tax/states/maine/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / Maine # Selling on eBay, Poshmark or Etsy from Maine: sales tax and 1099-K rules Since October 1, 2019, 36 M.R.S. § 1951-C has required marketplace facilitators to collect and remit Maine sales and use tax on all sales they facilitate, but Maine Revenue Services (MRS) says a marketplace seller with a physical presence in Maine must still register for Maine sales and use tax regardless of its volume of sales. Maine has no 1099-K threshold of its own: MRS requires payers who must e-file Forms 1099 with the IRS to file them directly with MRS for recipients of Maine-source income or payments, whether or not Maine tax was withheld. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## Maine in short - **General sales tax:** Yes - **Marketplace facilitator law:** Yes: 36 M.R.S. § 1951-C (P.L. 2019, c. 441), since Oct 1, 2019 - **When a marketplace must collect:** a substantial physical presence in Maine, or Maine gross sales of more than $100,000 in the previous or current calendar year, counting its direct sales and the sales it facilitates - **Form 1099-K:** Federal test; platforms file a copy with the state ## Who collects the tax on a marketplace sale Marketplace facilitators register with MRS and collect and remit Maine sales and use tax on all sales facilitated through their marketplace, including sales for sellers who aren't required to register. A facilitator is considered the retailer for each sale it facilitates for delivery into Maine, and must give each marketplace seller a written statement that it will collect and remit the tax on that seller's facilitated sales. ### If you sell only through marketplaces MRS says a marketplace seller with a physical presence in Maine is required to register for Maine sales and use tax regardless of its volume of sales. A seller with no physical presence in Maine who sells only through marketplaces doesn't have to register if the facilitator has given it the written statement. A registered seller includes facilitated sales in gross sales and reports them as exempt sales when it holds the statement; without one, MRS says it must collect the tax on its marketplace sales. Registration, resale certificates and what changes when you also sell direct have their own page: [Maine: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/maine/). The law: [36 M.R.S. § 1951-C (P.L. 2019, c. 441)](https://legislature.maine.gov/legis/bills/bills_129th/chapters/PUBLIC441.asp), effective Oct 1, 2019. > "A marketplace seller with a physical presence in the State of Maine is required to register for Maine sales and use tax regardless of their volume of sales." Maine Revenue Services, [Marketplace FAQ](https://www.maine.gov/revenue/faq/marketplace), marketplace sellers > "If a marketplace seller does not have such a written statement and is registered to collect the Maine sales tax, the marketplace seller is required to collect the tax on all sales facilitated through the marketplace." Maine Revenue Services, [Marketplace FAQ](https://www.maine.gov/revenue/faq/marketplace), reporting by registered marketplace sellers > "Marketplace facilitators are required to register with Maine Revenue Services (MRS) and to collect and remit Maine sales and use tax on all sales facilitated through their marketplace, effective October 1, 2019." Maine Revenue Services, [Marketplace FAQ](https://www.maine.gov/revenue/faq/marketplace) Sources: [Marketplace FAQ](https://www.maine.gov/revenue/faq/marketplace); [Public Law 2019, Chapter 441, An Act Regarding the Collection of the Sales and Use Tax by Marketplace Facilitators](https://legislature.maine.gov/legis/bills/bills_129th/chapters/PUBLIC441.asp). ## Maine's sales tax Maine has a statewide sales and use tax administered by Maine Revenue Services. Since October 25, 2023, marketplace facilitators also collect Maine's recycling assistance fee on facilitated sales of new tires and new lead-acid batteries. Sources: [Marketplace FAQ](https://www.maine.gov/revenue/faq/marketplace). ## Form 1099-K: Maine and the federal test MRS's withholding FAQ says anyone who made payments to a Maine resident, or payments sourced to Maine, and who is required to e-file Forms 1099 with the IRS must also file them electronically with MRS through the Maine Tax Portal, regardless of whether Maine tax was withheld, and not through the combined federal/state program. The FAQ covers Forms 1099 generally and doesn't name the 1099-K, and sets no lower threshold. > "you are also required to provide the forms electronically and directly to MRS for any recipients of Maine-source income or payments, regardless of whether Maine tax was withheld." Maine Revenue Services, [Income Tax Withholding FAQ](https://www.maine.gov/revenue/faq/income-tax-withholding), question 13 (revised April 15, 2026) Rule: MRS Rule 803 (Income Tax Withholding Reports and Payments). The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [Income Tax Withholding FAQ](https://www.maine.gov/revenue/faq/income-tax-withholding). ## Worked examples ### A Maine seller with $3,000 a year, all on marketplaces The marketplaces collect Maine tax on the seller's taxable sales. Because the seller has a physical presence in Maine, MRS says it registers for sales and use tax anyway, whatever its volume, and on its returns reports the facilitated sales in gross sales and as exempt sales, using each facilitator's written statement. ### An out-of-state seller with $40,000 of Maine sales If all $40,000 goes through marketplaces that gave written statements, a seller with no physical presence in Maine doesn't register. If $120,000 went directly to Maine buyers through its own site, its direct sales would pass $100,000 and MRS says it would register as a remote seller and collect on those direct sales. ## Edge cases and details - Only Maine sales made directly by a marketplace seller count toward that seller's own $100,000 remote seller threshold, MRS says. - P.L. 2019, c. 441 applies to sales occurring on or after October 1, 2019; its amendment to 36 M.R.S. § 1861-A (use tax on income tax returns) applies to tax years beginning on or after January 1, 2019. - A facilitator that also makes direct sales is advised to keep separate sales tax accounts for direct and facilitated sales, which can be reported on one consolidated return, according to MRS. - MRS doesn't accept magnetic media or paper copies of Forms W-2 and 1099; they go through the Maine Tax Portal. ## What to do 1. If you're based in Maine and sell through marketplaces, read the MRS Marketplace FAQ on registering regardless of sales volume. 2. Ask each marketplace for its written statement that it collects and remits Maine sales tax on your sales, and keep it with your records. 3. Keep each marketplace's sales report so your Maine returns show the facilitated sales and exemptions correctly. 4. Check with a tax professional, or with MRS, about your own registration and the federal 1099-K. ## Common questions ### Do I have to register in Maine if I only sell on eBay or Etsy? If you have a physical presence in Maine, yes, according to MRS: a marketplace seller with a physical presence in Maine is required to register for Maine sales and use tax regardless of its volume of sales. A seller with no Maine presence that sells only through marketplaces doesn't, if each facilitator has given it a written statement. ### What written statement does a Maine marketplace seller need? A statement from the marketplace facilitator saying it will collect and remit sales tax on all taxable sales it facilitates for you. MRS says a registered seller with that statement reports those sales as exempt; without it, the seller must collect on its marketplace sales. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [Maine: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/maine/) - [Louisiana: sales tax and 1099-K rules](https://resellerindex.com/tax/states/louisiana/) - [Maryland: sales tax and 1099-K rules](https://resellerindex.com/tax/states/maryland/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes Maine's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - Maine Revenue Services: [Marketplace FAQ](https://www.maine.gov/revenue/faq/marketplace); read Oct 19, 2026. October 1, 2019 start; facilitator thresholds; written statements; in-state sellers register regardless of volume; reporting; recycling assistance fee. - Maine Legislature: [Public Law 2019, Chapter 441, An Act Regarding the Collection of the Sales and Use Tax by Marketplace Facilitators](https://legislature.maine.gov/legis/bills/bills_129th/chapters/PUBLIC441.asp); read Oct 19, 2026. Enacts 36 M.R.S. § 1951-C; applies to sales on or after October 1, 2019. - Maine Revenue Services: [Income Tax Withholding FAQ](https://www.maine.gov/revenue/faq/income-tax-withholding), dated Apr 15, 2026; read Oct 19, 2026. Forms 1099 required to be e-filed with the IRS also go directly to MRS for Maine recipients; MRS Rule 803. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. Both parts of the federal test counted for the calendar year. Subscribe: https://resellerindex.com/subscribe/ --- The Reseller Index Researched and drafted with AI assistance from each platform's and carrier's own published pages. A full-time reseller runs The Reseller Index and will edit every newsletter issue once the newsletter starts. Every number links to its source and carries the date we checked it. Spot an error? [Tell us](https://resellerindex.com/corrections/) and we'll fix it in the public corrections log. General information, not tax, legal or financial advice. 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