Sec. 5. Bureau of Revenue Services duties and responsibilities. The Department of Administrative and Financial Services, Bureau of Revenue Services, referred to in this section as the "bureau," shall enforce the sales and use tax under the Maine Revised Statutes, Title 36, Part 3, referred to in this section as the "tax," on international sellers in the following ways.

1. Contact officials and organizations. The bureau shall contact:

A. The appropriate Canadian officials and trade organizations, focusing on retailers, modular home and engineered frame manufacturers and building materials and lumber trade organizations, to inform them of the requirements and penalties of the tax and the State's intention to vigorously enforce the tax against retailers entering the State from Canada and to request that this information be passed to Canadian companies who do business in the State. The bureau shall offer to collaborate with the officials and trade organizations in informing Canadian companies;

B. Canadian companies known to do business in the State, focusing on retailers, modular home and engineered frame manufacturers and building materials and lumber companies, to inform the businesses of the requirements of the tax and the State's intention to vigorously enforce the tax and to encourage registration and voluntary compliance with the requirements of the tax. This contact may be made by letter; and

C. Accounting firms in Canada and New England that audit Canadian companies, focusing on retailers, modular home and engineered frame manufacturers and building materials and lumber companies, to inform the firms of the requirements of the tax and the State's intention to vigorously enforce the tax and to request that the firms encourage their clients to register and voluntarily comply with the requirements of the tax. As much as possible, a contact made pursuant to this paragraph should be in person by an auditor who works for the bureau.

2. Audits. The bureau shall audit Canadian companies, focusing on retailers, modular home and engineered frame manufacturers and building materials and lumber companies known to do business in the State to gauge compliance with the tax, to encourage the companies to register for and comply with the tax and to gain names and addresses of customers who are state residents who may have purchased goods or materials from the companies without paying the tax. The bureau shall also audit any list of highway fuel tax registrants for Canadian companies who are not registered under Title 36, Part 3 and may be entering the State with retail goods.

3. Spot checks. The bureau shall monitor border crossings and stop motor vehicles suspected of belonging to Canadian companies, focusing on potential retailers, modular home and engineered frame manufacturers and building materials and lumber companies who may not be registered under Title 36, Part 3 and may be entering the State with retail goods. The bureau shall also obtain United States Customs Service quarterly reports to help identify Canadian companies, focusing on retailers, modular home and engineered frame manufacturers and building materials and lumber companies who may not be registered under Title 36, Part 3 and may be entering the State with retail goods.

SUMMARY

This bill strengthens enforcement of the sales and use tax against Canadian companies doing business in the State by directing:

1. Municipalities and the Maine Land Use Regulation Commission to require proof of payment of the sales and use tax before issuing a certificate of occupancy or compliance;

2. The Department of Transportation to post signs at Canadian border crossings informing travelers entering the State of the sales and use tax requirements;

3. The Secretary of State to forward a copy of every overland movement permit issued to the Department Administrative and Financial Services, Bureau of Revenue Services; and

4. The Bureau of Revenue Services to contact Canadian officials, trade organizations and accounting firms and companies informing them of the requirement of the sales and use tax and encouraging registration and voluntary compliance, to audit Canadian companies suspected of violating the sales and use tax requirements and to conduct spot checks at the border for

Canadian companies suspected of violating the sales and use tax requirements.