Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 308 - DIRECT PAY PERMITS
Section 125-308-4 - Exceptions and Restrictions

A. Purchases of prepared food;

B. Purchases of taxable services other than the transmission and distribution of electricity;

C. Purchases of services taxable under Title 36 Chapter 358 (Service Provider Tax); and

D. Interim rentals under Section 1758.

A. Purchases of Real Estate. Contracts for the construction of real estate, the provisions of which require the incorporation of tangible personal property into the real estate of a permit holder prior to passage of title, shall not use a direct payment permit or permit number in any way that infers that such tangible personal property purchased by the contractor may be purchased tax free under a direct payment permit. It will be deemed that passage of title to the permit holder does not occur prior to incorporation into real estate unless specifically stated in the contract.

B. Leases. Leases (other than leases in lieu of purchase) covering the lease of tangible personal property to a holder of a direct payment permit shall not include a direct payment permit number, nor shall the use of direct payment permit numbers in any way infer that tangible personal property to be purchased by the lessor for lease to the holder of a direct payment permit may be purchased tax free under a direct payment permit.

The direct payment permit holder (lessor) is responsible for payment of the sales and use tax liability, regardless of whether the lease requires the lessee to reimburse the lessor for any taxes incurred by the lessor on leased property.