Maine – Taxability of Truck Service Contract and Parts

SALT Report 2574 – Maine recently enacted legislation that provides that the sale of an extended service contract on a truck is a taxable service if it entitles the purchaser to specific benefits regarding the service of the truck for a specific amount of time. However, the legislation also creates a sales and use tax exemption for the sale of repair parts for use in truck repairs when purchased under an extended service contract.

The bill defines a “truck” as a self-propelled motor vehicle with at least four wheels designed and used primarily to carry property, not designed to run on tracks, and having a gross vehicle weight rating greater than 10,000 pounds. A truck may be used to tow trailers or semitrailers.

The provisions in this bill are effective September 18, 2013.

For Further Information

Maine State Legislature – SP 266, Laws 2013