Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 302 - SALES TO GOVERNMENTAL AGENCIES AND EXEMPT ORGANIZATIONS › Section 125-302-4 - Responsibilities of retailers and service providers - Sales to exempt organizations

Current through 2024-29, July 17, 2024
Sales tax must be collected by the retailer, or paid by the
				  service provider, on sales to entities that have not provided an exemption
				  certificate to the retailer or service provider, and on sales of tangible
				  personal property or services that are not related to the activity identified
				  on the certificate issued to the entity. Retailers and service providers must
				  maintain in their files a copy of the exemption certificate issued to any
				  exempt organization to which they make a tax-exempt sale. Separate invoices of
				  all tax-exempt sales must be retained by the retailer or service provider and
				  appropriately marked. The words "Maine Sales Tax Exempt" or "Maine Service
				  Provider Tax Exempt," together with a notation of the applicable exemption
				  number, will satisfy this requirement.
Regardless of the specific method of payment, are tailer or
				  service provider is not relieved of its burden of proving that a sale is exempt
				  if it has, at the time of the sale, knowledge of facts that give rise to a
				  reasonable inference that the purchaser is not the holder of the exemption
				  certificate, that the exemption certificate has been revoked or is otherwise
				  invalid as of the time of the sale, or that the tangible personal property or
				  service is not to be used exclusively by the exempt organization primarily in
				  the activity identified on the exemption certificate.
1.
Direct billing.
Sales that
				are billed directly to an exempt organization may be made tax-free without a
				purchase order or other documentation beyond that required by this
				rule.
2.
Cash, personal check
				or personal bank card.
Purchases paid for with cash, personal check,
				personal credit card, or personal debit card may not be made tax-free unless
				the purchaser presents a purchase order issued by the exempt organization that
				identifies the specific item or items, or the specific services, to be
				purchased. The retailer or service provider must retain the purchase order (or
				a copy) in its records.
Notwithstanding the previous paragraph, sales made to
				  authorized employees or representatives on behalf of exempt organizations that
				  are paid for with cash, personal check, personal credit card, or personal debit
				  card may be made tax-free if a magnetic customer card issued by the retailer or
				  service provider to the exempt organization and identifying the organization as
				  tax-exempt is presented at the time of the sale by the authorized individual
				  making the purchase and is recorded electronically by the retailer or service
				  provider. The retailer or service provider must retain the digital information
				  identifying the transaction and the purchaser. The customer card must:
A. Bear the name and signature of the
				specific individual authorized by the exempt organization to use it to make
				purchases; and
B. Contain a
				statement substantially similar to the following: "This card is to be used only
				by the individual named hereon for purchases authorized by [NAME OF EXEMPT
				ORGANIZATION]. If this card is used by the individual named hereon for any
				other purpose, the individual may be held liable for any applicable taxes,
				together with associated interest and penalties, and, if used to intentionally
				evade Maine tax due, may also be subject to criminal prosecution."