SALT Report 3063 – Maine Revenue Services updated its sales and use tax bulletin for vehicle dealers to reflect recent changes in the sales and use tax laws. The information in the guide applies to sales and leases of motor vehicles, snowmobiles, all-terrain vehicles, tractors, semi-tractors, trailers, truck campers, aircraft, and watercraft.
Under the motor vehicles section that discusses sales and leases of certain vehicles, all-terrain vehicles and snowmobiles have been added; and the bulletin notes that at the time of a sale or lease of a motor vehicle Form ST-A-106 must now be used.
A new section regarding sales of camper trailers and motor homes for rental has been added and notes that sales of these items to a person engaged in the business of renting or leasing motor homes or camper trailers are excluded from the definition of “retail sale” and are non-taxable.
The section that discusses extended warranties was updated to reflect that effective October 9, 2013, the sale of an extended service contract on a truck that entitles the purchaser to specific service benefits is a taxable service.
The section that discusses tools and supplies was updated to reflect that masking tape has been removed from the list of items that are used or consumed by a dealership. However, touch-up paint was added to the list of billable shop supplies.
Finally, the bulletin updated the list of forms that must accompany a dealer’s and lessor’s supplemental report:
Form ST-A-106 for motor vehicles, including snowmobiles and ATVs, semitrailers, aircraft, camper trailers, and truck campers sold for immediate removal from Maine
Form ST-A-113 for watercraft and repairs to watercraft owned by a resident of another state
Form ST-A-111 for vehicles used by the purchaser in interstate or foreign commerce, and
Form ST-A-115 for qualified snowmobiles and trail grooming equipment sold to incorporated nonprofit snowmobile clubs used directly and exclusively for grooming snowmobile trails
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