- Businesses must collect sales tax in Maine if they have a physical presence or reach 100,000 dollars in gross revenue in Maine.
- Most tangible products are taxable, including cosmetics, electronics, clothing, furniture, and jewelry.
- Exempt items include grocery staples, diapers, feminine hygiene products, prescription medications, medical devices, and agricultural supplies.
- Most services are not taxable, but some exceptions include rentals leases of automobiles, prepaid calling services, telecommunications equipment installation maintenance repair, fabrication services, and video media equipment rentals.
- SaaS is not taxable, but digital products are taxable in Maine.
- Shipping and handling charges are not taxable if listed separately and the product is shipped directly to the customer.
- A sellers permit is required to collect sales tax. There is no fee to register.
- Businesses can use a resale certificate to buy goods tax free if they intend to resell them.
- Maine is not a participant in the Streamlined Sales Tax program.
- Maine has a single statewide sales tax rate. There are no local taxes.
- Maine is a destination based state, meaning sales tax is based on the buyers location.
- Filing frequency depends on the business’s average tax liability.
- Sales tax is generally due on the 15th of the month following the collection period.
- Sales tax returns can be filed online, by mail, or through a service like TaxHero.
- Maine does not offer a discount for timely filing.
- Maine currently has no planned sales tax holidays for 2024 2025.
- Penalties for non compliance include fines and potential criminal charges, depending on the severity and frequency of the offense.
Source: taxhero.net
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.
