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 125-302-5 - Responsibilities of retailers and service providers - Government sales

Current through 2024-29, July 17, 2024
Sales made directly to the federal government or the State of
				  Maine or any of its political subdivisions are exempt from sales tax and
				  service provider tax. Sales made directly to any unincorporated agency or
				  instrumentality of either the federal government or the State of Maine, or to
				  any of their wholly-owned incorporated agencies or instrumentalities, are also
				  exempt. This category includes school districts; water, power, parking, sewer
				  and other districts in Maine established by legislative act as quasi-municipal
				  corporations; village corporations; the University of Maine and Maine Community
				  College Systems; and the Maine Turnpike Authority. Governmental subdivisions,
				  units, agencies and instrumentalities covered by
				  36 M.R.S.
				  §§1760(2) and
				  2557(2) are
				  referred to in this rule as "governmental agencies."
Governmental agencies are not required to obtain a tax
				  exemption certificate. A retailer or service provider must document all
				  tax-free sales to governmental agencies by listing the name of the governmental
				  agency on the invoice or sales slip.
Regardless of the specific method of payment, a retailer or
				  service provider is not relieved of its burden of proving that a sale to a
				  governmental agency is exempt if it has, at the time of the sale, knowledge of
				  facts that give rise to a reasonable inference that the card is being used to
				  make a personal purchase that is not tax-exempt or for any other purpose other
				  than an official governmental purpose.
1.
Direct billing.
Sales that
				are billed directly to a governmental agency 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 individual making the purchase presents a purchase order issued by the
				governmental agency that identifies the specific item or items, or the specific
				service, to be purchased. The retailer or service provider must retain the
				purchase order (or a copy) in its records and must identify the sale
				transaction on that document.
Notwithstanding the previous paragraph, sales made to
				  authorized employees or representatives on behalf of governmental agencies 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 retaileror
				  service provider to the governmental agency is presented at the time of the
				  sale by the authorized individual making the purchase and is recorded
				  electronically by the retaileror service provider. The retaileror 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 governmental agency 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
				GOVERNMENTAL AGENCY]. 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."