- Maine Revenue Services released General Information Bulletin No. 114 regarding changes to sales and use tax rules for leases and rentals
- Current rules require lessors to pay sales tax upfront when purchasing property for lease
- Starting January 1, 2025, lessors can purchase property exempt from sales tax with a resale certificate
- Lessors will now be responsible for collecting sales tax on each lease or rental payment
- Sourcing rules will determine where taxes are applied based on location of property and lessee
- Lessors must keep detailed records and understand sourcing rules to comply with new regulations
- Limited refund period available for lessors who paid sales tax on property before new rules took effect
Source: thompsontax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
