SALT Report 3118 – Maine Revenue Services revised an informational bulletin regarding the application of sales and use tax to the original registration of a motor vehicle to include recent legislative changes. Updates are as follows:
The sections that discuss “bills of sale” and “sales by out-of-state dealers” now include provisions regarding taxes shown on a bill of sale. For example, the registration agent is required to review the bill of sale to determine if sales tax has been charged or that the sale or lease was exempted from sales tax.
The agent can only proceed with the registration if the sales tax is listed on the bill of sale, or the sales tax line on the bill of sale indicates that it is “exempt.” If the bill of sale does not list the sales tax and does not contain the word “exempt,” the person registering the vehicle has two options. The person can return to the dealer to obtain a new bill of sale, or complete a Use Tax Certificate -Form S.T.M.V. 6U, and pay the appropriate tax or claim an exemption.
The section that discusses “sale price” for retail sales tax purposes now includes extended warranties on automobiles and extended warranties on trucks sold on or after October 9, 2013.
The section that discusses “casual sales exceptions” provides additional clarification regarding transfers from a corporation to another party. The bulletin provides that this type of transfer is generally taxable as a casual sale if the shareholder, owner or employee provides payment or other consideration for the transfer.
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