SALT Report 3046 – Maine Revenue Services issued a supplemental notice to provide additional guidance regarding the application of sales and use tax to sales of publications by printers. Specifically, the notice provides that if you print publications for a publisher, your sales to the publisher are no longer exempt, effective October 1, 2013.
However, some sales may be exempt as a sale for resale if the publisher is registered for sales and use tax and provides a resale certificate and sales to tax exempt organizations will remain exempt. If the printer’s customer is a publisher who does not provide a resale certificate or an exemption certificate, the printer’s sale to the publisher are taxable effective October 1, 2013. Additionally, publishers who purchase materials without paying sales tax will be liable for use tax.
Lastly, it is MRS’ understanding that legislation will be introduced in January that will create a limited exemption specific to a printer’s sales of “free publications” and components to the publications. Therefore, MRS recommends that printers and publishers of these materials keep track of their taxable sales and purchases to facilitate the filing of claims for refund in the event that any legislation becomes law.
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