Maine's Service Provider Tax
- Sales Tax News
- Sep 25, 2013 | Gail Cole
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.
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