Happy Hippos (HH) is a manufacturer and retailer of New England crafts headquartered in Camden, Maine. HH provides services and has sales, employees, property, and commercial domicile as follows:

Happy Hippos In-State Activities
State	Sales	Employees	Property	Services	Commercial Domicile
Connecticut
Maine
Massachusetts
New York
Rhode Island
Vermont

HHs sales of goods and services by state are as follows:

Happy Hippos Sales
State	Goods	Services	Total
Connecticut	$ 86,016	$ 53,821	$ 139,837
Maine	304,918	86,578	391,496
Massachusetts	94,243		94,243
New York	138,637		138,637
Rhode Island	105,603		105,603
Vermont	132,164	27,902	160,066
Totals	$ 861,581	$ 168,301	$ 1,029,882

HH has federal taxable income of $310,942 for the current year. Included in federal taxable income are the following income and deductions:

• $13,500 of Vermont rental income.
• City of Orono, Maine, bond interest of $10,000.
• $10,000 of dividends.
• $2,678 of state tax refund included in income.
• $34,124 of state net income tax expense.
• $64,124 of federal depreciation.

Other relevant facts include:

• Assume that the New York sales are to a single customer who is a retailer and can provide a valid New York reseller's certificate.
• Maine state depreciation for the year was $49,528, and Maine doesnt allow deductions for state income taxes.
• The employees present in Connecticut, Massachusetts, and Rhode Island are salespeople who perform only activities protected by Public Law 86-272.
• Assume that each of the states is a separate-return state.

HHs payroll is as follows:

Payroll
State	Wages
Connecticut	$ 99,516
Maine	396,920
Massachusetts	170,190
Rhode Island	94,476
Vermont	197,328
Total	$ 958,430

HHs property is as follows:

Property
State	Beginning	Ending	Rented
Maine	$ 944,774	$ 946,922
Vermont	333,274	435,132	$ 13,500
Total	$ 1,278,048	$ 1,382,054	$ 13,500

c. Determine the states in which HH has income tax nexus.