Can I collect sales tax from customers in different states without violating tax laws in Maine? What are the requirements?

Can I collect sales tax from customers in different states without violating tax laws in Maine? What are the requirements?

If you are selling to customers in different states, you may be required to collect sales tax in those states as well. Each state has its own sales tax laws and requirements, and it is important to comply with them to avoid violating tax laws.

In Maine, a sales tax is imposed on the value of all tangible personal property, products transferred electronically, and taxable services sold at retail in the state ^[1.1]. Maine retailers are required to file monthly sales tax returns with the State Tax Assessor, reporting the total sale price of all sales made during the preceding calendar month and such other information as the assessor requires ^[2.1].

If you have paid a sales or use tax imposed by another taxing jurisdiction that is equal to or greater than the tax imposed by Maine, then the tax imposed by Maine does not apply to the use, storage or other consumption in Maine of tangible personal property or taxable services purchased outside the state ^[3.1].

It is illegal for any retailer to knowingly charge or collect as the sales tax due on the sale price of any property or service an amount in excess of that provided by Maine law ^[1.2].

To claim a credit for sales tax imposed by Maine, a retailer registered under section 1754‐B or 1756 may claim a credit for sales tax imposed by Maine if the retailer has paid the sales tax on tangible personal property purchased for resale at retail sale ^[1.4].

In conclusion, if you are selling to customers in different states, you may be required to collect sales tax in those states as well. Each state has its own sales tax laws and requirements, and it is important to comply with them to avoid violating tax laws. In Maine, retailers are required to file monthly sales tax returns with the State Tax Assessor, and it is illegal to knowingly charge or collect an amount in excess of that provided by Maine law. If you have paid a sales or use tax imposed by another taxing jurisdiction that is equal to or greater than the tax imposed by Maine, then the tax imposed by Maine does not apply to the use, storage or other consumption in Maine of tangible personal property or taxable services purchased outside the state.

Source(s):

• [1.1] Sales tax
• [2.1] Collection of tax; report to State Tax Assessor
• [3.1] Sales or use tax paid to another jurisdiction
• [1.2] Illegal collection of sales tax prohibited
• [1.4] Credit for tax paid on purchases for resale

Jurisdiction

Maine

• General