Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 301 - SALES FOR RESALE AND SALES OF PACKAGING MATERIALS
Section 125-301-3 - Sales to Active Registered Retailers

Universal Citation: 18 ME Code Rules ยง 125-301-3

Current through 2024-13, March 27, 2024

1. Selling retailers that make sales of taxable tangible personal property for resale need not collect the tax imposed by 36 M.R.S. §1811 when the sale is excluded from sales tax under 36 M.R.S. §1752(11)(B) and this Rule. The selling retailer is liable for any applicable sales tax due on a sale for resale that is not excluded from sales tax under 36 M.R.S. §1752(11)(B) and this Rule, whether or not the selling retailer has collected the tax from the purchaser.

2. Selling retailers that make sales of taxable tangible personal property to an active registered retailer for resale need not collect sales tax under the following circumstances:

A. The purchaser specifically states in the order, whether written or oral, that the property is purchased for resale.

B. The property purchased is of the type or types ordinarily purchased for resale by that purchaser, identified as such on the resale certificate issued to the purchaser by the State Tax Assessor.

C. The selling retailer obtains, or has on file, a copy of the purchaser's resale certificate valid on the date of the sale.

D. The copy of the resale certificate is signed by the purchaser or the purchaser's authorized representative.

3. If the selling retailer fails to obtain a copy of a currently valid resale certificate from the purchaser prior to the sale, the selling retailer bears the burden of proving that the sale was in fact a nontaxable sale for resale. If the sale was made to a person who was an active registered retailer at the time of the sale and the property purchased was of the type or types ordinarily purchased for resale by that purchaser, the presumption that the sale was a taxable retail sale can be overcome during an audit or upon reconsideration.

4. Invoices of sales for resale must be appropriately marked or stamped to indicate that they are exempt from tax. The words "Maine sales tax exempt, for resale" will satisfy this requirement.

5. Resale certificates issued by purchasers based on the suggested format provided in Rule 301 as adopted June 1, 1951, and replaced December 31, 1979, are not valid for certification of tax-free sales for resale made after August 15, 2004.

6. An active registered retailer does not have the option of paying tax to its suppliers and claiming a credit on its sales and use tax return for the tax paid when purchasing items for resale that are of the type or types ordinarily purchased for resale by that purchaser.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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