Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 325 - SALES TO TRIBES, TRIBAL MEMBERS, AND TRIBAL ENTITIES
Section 125-325-08 - Reporting of taxable sales by retailers located on tribal land

Universal Citation: 18 ME Code Rules ยง 125-325-08

Current through 2024-38, September 18, 2024

A. Generally. 36 M.R.S. §1815(2) requires the Assessor to notify the State Controller and the Treasurer of State each month of the amount of revenue attributable to sales tax collected by retailers for sales occurring on tribal land in the previous month to be returned to the respective tribes.

B. Sales occurring on tribal land. A sale occurs on tribal land for purposes of 36 M.R.S. §1815(2) if:

1. The business location of the retailer from which the purchase is made is on Passamaquoddy Indian territory, Penobscot Indian territory, or Houlton Band Trust Land, respectively; and

2. The tangible personal property or taxable service is received by the purchaser also on Passamaquoddy Indian territory, Penobscot Indian territory, or Houlton Band Trust Land, respectively.

C. Taxable sales of property received outside of tribal land. A retailer located on tribal land may make taxable sales of property or services that are received by the purchaser in Maine but outside of tribal land. In such cases, the revenue attributable to the sales tax collected on those sales is not returned to the respective tribes.

D. Reporting. Retailers located on tribal land will be required, beginning with the sales tax return period that begins January 1, 2023, to report taxable sales occurring on tribal land separately from those taxable sales occurring off of tribal land. Only the sales tax revenue attributable to sales occurring on tribal land will be returned to the respective tribes.

E. Examples.

Example 1: A retailer whose business is located on tribal land makes sales of tangible personal property that are taxable to a person who receives the tangible personal property at the business location of the retailer. The sales tax revenue attributable to that sale will be returned to the respective tribe the following month pursuant to 36 M.R.S. § 1815(2).

Example 2: The same retailer whose business is located on tribal land also makes sales of tangible personal property that are taxable (as no other exemption or exclusion applies), but the property is delivered to the purchaser at a location in Maine that is not on tribal land. The sales tax must still be collected by the retailer, but the sales tax revenue attributable to that sale will not be returned to the respective tribe. This sale must be reported separately from the sale in Example 1 on the retailer's sales tax return.

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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