Maine – Amended Sales and Use Tax Laws

SALT Report 2609 – Recently enacted legislation in Maine amends certain sales and use tax laws regarding resale certificates, the application of tax on certain casual sales, and requests for appeals conferences.

Issuance and Renewal of Resale Certificates

On November 1 of each year, the State Tax Assessor will review the returns filed by each registered retailer, unless the retailer holds a resale certificate that expires after December 31st of that year.

During the review, the assessor will verify that the registered retailer has reported $3,000 or more in gross sales during the 12 months preceding the review. If so, the assessor will issue a resale certificate to the retailer effective for five years.

If a registered retailer does not meet the $3,000 threshold, the retailer will not be entitled to renewal unless certain conditions are met. For example, the assessor will issue a five year resale certificate to the retailer if:

  • The retailer can demonstrate that its gross sales for the most current 12-month period totals $3,000 or more, or
  • The retailer explains to the satisfaction of the assessor why temporary circumstances have caused its gross sales for the period under review to be less than $3,000.
  • This provision is effective September 14, 2013.

Casual Sales

The tax on casual sales of certain property will not be imposed if the property is sold for resale or to a corporation, partnership, limited liability company or limited liability partnership and the seller owns 50% or more of the common stock or ownership interests in the entity purchasing the property. This provision is effective September 14, 2013.

Request for Appeals Conferences

Taxpayers now have 20 days after filing a statement of appeal to request that the appeals office hold an appeals conference to receive additional information or to hear arguments regarding an assessment or determination. Under current law, the request for an appeals conference must be included in the statement of appeal. This provision is effective September 14, 2013.

For Further Information

Maine State Legislature – SP 333, Laws 2013