Maine Sales Tax 2023 - 2024
Maine Fuel Tax provides two-thirds of the state highway fund's revenue. Local towns depend on the money to help pay for their road maintenance.
As a business owner, you are responsible for collecting Maine sales tax on the products and services you sell. These collected taxes are then remitted to the state by the business. Failure to do so may result in penalties and interest charges. Before you can begin collecting sales tax, it is important to register with the Maine Revenue Services. Once registered, you will be assigned a filing frequency by the state. These frequencies can be monthly, quarterly, or annually.
Once you have registered and been assigned a filing frequency, you can begin collecting sales tax on your taxable products or services in the state of Maine. You can find a list of product/service specific sales tax rates in the state of Maine on the Revenue Services website.
Businesses should also consider whether they’re collecting taxes on shipping and handling fees. Generally, these charges are taxable on taxable sales and exempt on tax-exempt sales. However, there are exceptions to this rule. If you’re unsure how to handle these charges, consult a tax professional familiar with Maine sales tax laws. This can save you a lot of headaches in the long run.
Maine Sales Tax Exemption
While most goods and services are taxable in the state of Maine, there are some that are exempt from sales tax. Some examples include prepared food, prescription drugs, and lodging (long and short-term). You should also know that shipping and handling is typically taxable in the state of Maine.
A few sales are not subject to the state sales tax. These include the rental by a hotel of a dining room or other area not intended for use as living quarters and medicines prescribed by a doctor (including refills). More specific information is available on page 5 of Maine’s Reference Guide to Sales and Use Tax Law.
A business that is exempt from sales tax must register with the state to receive a registration certificate. It must also collect and remit the tax at least annually. It is important to file returns and remit the tax on time because failing to do so may result in interest charges.
Maine Sales Tax Due Dates
As a seller, you must be aware of the state’s sales tax filing deadlines and payment obligations. You can check the date your returns and payments are due on the Maine Revenue Services website. Sales tax return and payment dates vary by filing frequency, so be sure to consult the schedule for your specific business.
