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Maine's Service Provider Tax

  • Sep 25, 2013 | Gail Cole

 Haircuts are exempt from sales tax in Maine.

Most services in Maine are not subject to state and local sales tax. Personal services such as haircuts and dry cleaning are exempt, as are personal property services and real property services, which include everything from landscaping and house cleaning to carpentry and pet grooming. However, individuals offering numerous services are subject to Maine's service provider tax.

The service provider tax applies to the many services, including but not limited to:

  • Services related to telecommunication, cable and satellite services;
  • Services related to video games, video equipment or video media rental;
  • Fabrication services;
  • Rental of furniture, home electronic devices, and audio media or equipment; and
  • Providers or nonmedical institution or personal home care services, community support services for persons with metal health diagnoses, intellectual disabilities or autism, home support services, and group residential services for persons with brain injuries (when the above are pursuant to a contract with the Department of Health and Human Services).

The service provider tax is imposed on the provider of the service, not on the actual sale of the service (like a sales tax) or the purchaser of the service. However, "the provider may pass this tax through to the consumer in which case it must be identified as a 'service provider tax.'" When it is passed on, it feels like a sales tax to the consumer.

Interested in learning more about sales, use and service provider taxes in Maine? Read Maine Revenue Services' updated business guide.

Interested in an automated sales tax solution? Find out more here.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.