State Sales Tax Rates

State Sales Tax Rates Maine State Sales Tax 2014

Maine Sales Tax 2014
Maine State Sales Tax for 2014 Maximum Municipal Sales Tax

5.00%

0.00%

What is the Maine Sales Tax?

The Maine state sales tax is 5%, with a maximum possible sales tax (including local and municipal sales taxes) of 5%.

Unlike some other states, Maine does not allow local and municipal governments to impose their own sales taxes. The maximum sales tax that can be collected anywhere in Maine is 5% of the qualifying purchase price.

Maine's sales tax is technically a combination of service provider and use taxes, which serve the same purpose. Special tax rates include 7% on restaraunts and prepared food as well as lodging costs, and 10% on any short term auto rental fees.

What sales are exempt from the Maine Sales Tax?

Maine Sales and Use Tax Rates

Many states set special sales tax rates for certain types of goods like groceries or clothes, and may completely exempt certain transactions from state and local sales taxes. Maine completely exempts unprepared food and groceries, and prescription drugs from the Maine state sales tax.

Maine does not have special sales tax rates for certain types of purchase, a common practice in many states for goods such as food and clothing.Like many other states, Maine levies a special sales tax on prepared food from restaraunts or other locations. The Maine restaraunt sales tax is 7%.

Generally, the Maine sales tax is collected only from the end consumer, or the end user of the product. Customers buying products in bulk, as a business-to-business transaction, or buying with the intent to resell do not have to pay the Maine sales tax if they provide the seller with a Maine Sales Tax Exemption Certificate at the time of purchase. Most states will accept the Uniform Sales and Use Tax Certificate for this purpose, which is available from the Multistate Tax Commission here.

Internet Sales Tax, or tax on purchases made over the internet, is currently a gray area in many states' tax codes. While most states can collect sales tax on internet purchases made within the state (the vendor and consumer are both located in Maine), taxation of interstate internet transactions is much more complicated.

Currently New York, Rhode Island, North Carolina, Colorado, and Illinois have some form of online sales tax that also handles interstate transactions. For details on how Maine handles taxation of online sales, read more about online sales taxes in the United States.

Resources:

[1] Table of state sales taxes on Wikipedia
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction

[2] Maine sales tax information on Tax-Rates.org
http://www.tax-rates.org/Maine/sales-tax

[3] Table of state sales, use, and excise taxes by The Tax Foundation
http://www.taxfoundation.org/taxdata/show/245.html

[4] State level taxation resources on IRS.gov
http://www.irs.gov/businesses/small/article/0,,id=99021,00.html