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News >> Casual Rentals of Living Quarters Subject to 7% Maine State Sales Tax

December 2005


Casual Rentals of Living Quarters Subject to 7% Maine State Sales Tax
 

Tax Practice Group

The Tax Practice Group is chaired by Dorrance Sexton, Jr., working with Clarissa B. Edelston, Nathaniel S. Putnam, and Christine Burke Worthen.

This Group advises business and individual clients in federal, state, and local tax planning, ERISA issues, estate and gift tax planning and nonprofit organization tax issues. The Group also provides guidance regarding tax planning for settlements and judgments, assistance with federal and state tax audits, like kind exchanges and cross border transactions.

For more information...

  • Casual Rentals of Living Quarters Subject to 7% Maine State Sales Tax
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    Persons who enter into certain short-term rental arrangements need to be aware of the following change to Maine’s sales tax treatment of such transactions:

    Effective July 1, 2005, a person who owns a house, cottage, camp, vacation home, condominium unit or other place that is kept, used, maintained, advertised or held out to the public as a place available for rent is required to register with Maine Revenue Services and collect and remit to the State of Maine sales tax at a rate of 7%.

    There are a few exceptions to this general rule as follows:

  • Rentals that total fewer than 15 days in a calendar year are not subject to sales tax.

  • Continuous rental to a person for more than 28 days when the place is the person’s primary residence is not subject to sales tax.

  • Continuous rental to a person for more than 28 days when the person is residing away from his/her principal residence for purposes of education or employment is not subject to sales tax.

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    Should you have questions with regard to the foregoing, please contact either Christine Worthen or Rannie Sexton of the Tax Practice Group at Eaton Peabody.

    207-947-0111



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