Section 125-801-01 - DefinitionsA.Affiliated group. "Affiliated group" means a group of 2 or more corporations in which more than 50 percent of the voting stock of each member corporation is directly or indirectly owned by a common owner or owners, either corporate or non-corporate, or by one or more of the member corporations. 36 M.R.S. §5102(1-B).B.Costs of performance. "Costs of performance" means direct costs determined in a manner consistent with generally accepted accounting principles and in accordance with accepted conditions or practices in the trade or business of the taxpayer. In cases when it is impossible or impracticable to determine the costs of performance attributable to different states, the gross receipts from the performance of services attributable to this state are measured by the ratio that the time spent in performing the services in this state bears to the total time spent in performing the services everywhere. Time spent in performing services includes the amount of time expended in the performance of a contract or other obligation which gives rise to such gross receipts. Personal service not directly connected with the performance of the contract or other obligation, such as time expended in negotiating the contract, is excluded from the computations.C.Domicile. "Domicile" means the principal place from which the business activities of a taxpayer are directed or managed. If it is not possible to determine the principal place from which the business activities of a taxpayer are directed or managed, the state of the taxpayer's incorporation is considered its state of domicile.D.Income-producing activity. "Income-producing activity" means, for each separate item of income, the transactions and activity directly engaged in by the taxpayer for the ultimate purpose of obtaining gain or profit. For apportionment purposes, such activity does not include transactions and activities performed on behalf of a taxpayer, such as those conducted on the taxpayer's behalf by an independent contractor. Income- producing activity includes, but is not limited to: (1) The rendering of personal services by employees or the utilization of tangible and intangible property by the taxpayer in performing a service;(2) The sale, rental, leasing, licensing the use of, or other use of real property; and(3) The rental, leasing, licensing the use of, or other use of tangible or intangible personal property.E.Located in the State. "Located in the State" has the same meaning as in 36 M.R.S. §5206-D(11)(A)-(D).F.Office. "Office" means a permanent or temporary location where a business entity makes sales or holds itself out to the public as conducting business. The home of a business's sales representative is generally not an "office" of the business for purposes of this rule unless the representative is publicly held out as doing business on behalf of the business at that location, either by publishing the home address as the business's own address or through other actions.G.State. "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. 36 M.R.S. §5210(6).H.Taxpayer. "Taxpayer" for purposes of this rule means a corporation required to file a federal income return, a tax pass-through entity required to file a federal information return, a sole proprietorship required to file federal Form 1040, Schedule C, or any other business entity required to file a federal return. "Taxpayer" for purposes of this rule does not mean a partner or other owner of a pass-through entity, except where specifically stated.I.Total time. "Total time" means the total number of days. Any portion of a day is counted as an entire day.J.Unitary business. "Unitary business" means a business activity that is characterized by unity of ownership, functional integration, centralization of management and economies of scale.18-125 C.M.R. ch. 801, § 01