03 Income not subject to Maine income tax

The following types of income earned or derived by nonresidents are not subject to Maine income tax: A. Certain intangible income. Except for the provisions of section .02, income from intangibles, such as annuities, interest, dividends, copyrights, patents, and gains from the sale or exchange of intangibles (other than the sale of partnership interests), when not related to a trade, business, profession or occupation carried on in Maine; B. Certain military pay. Compensation paid by the United States of America to its uniformed military personnel for services rendered on active duty, including members of the Army, Navy, Air Force, Coast Guard, and Marines who are assigned to a military air base, naval station, or any facility in Maine, public or private, to which they must report under service orders (see the federal Servicemembers Civil Relief Act); C. Military spouses. Income earned from services performed in Maine by a nonresident spouse of a servicemember if the spouse is a nonresident in Maine 18-125 Chapter 806 page 7 solely to be with a servicemember who is in Maine in compliance with that servicemember’s orders; D. Certain transportation employees. Earnings paid to nonresident transportation workers whose wages are exempt from Maine taxation by federal law, including interstate railroad and motor carrier employees who perform services for their employer in more than one state (49 U.S.C.S. §§ 11502 and 14503); and E. Exempt retirement income. Retirement income, including pensions and deferred compensation received after termination of employment, that is exempt from state income taxes pursuant to United States law (4 U.S.C.S. § 114). F. Certain nonresidents working in Maine under interlocal agreements. Beginning in tax year 2011, income earned by a nonresident employee of a political subdivision of an adjoining state performing services in Maine in accordance with an interlocal agreement under 30-A M.R.S., Chapter 115 is not considered Maine-source income, so long as the work performed does not displace a Maine resident employee. G. Income directly related to a declared state disaster or emergency. For tax years beginning on or after January 1, 2013, employee compensation or income from a trade or business in Maine that is directly related to a declared State disaster or emergency, but only if: 1. The nonresident is present in the State during the taxable year solely for the performance of services or the conducting of business during a declared state disaster or emergency period; and 2. The services were requested by the State, a county, city, town or political subdivision of the State or a registered business as defined in 10 M.R.S., Chapter 1201. H. Other income. Any other income earned by a nonresident that is protected from Maine taxation by federal law.