SALT Report 1791 – Maine Revenue Services updated its sales and use tax bulletin regarding lease and rental transactions to include a section on the taxability of rentals or leases of motor homes and camper trailers.
As of October 1, 2012 the rental or lease of a motor home or camper trailer is a taxable service. However, the statutory definition of “retail sale” excludes the sale of a camper trailer or motor home to a person engaged in the business of renting these items. Therefore, these businesses do not need to pay sales tax when they purchase motor homes and camper trailers for rental purposes. Additionally, these businesses are not required to accrue use tax if they withdraw a unit out of resale inventory. But, if they are eventually sold after having been rented those sales are subject to sales tax.
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