Sales, Use and International Tax Activity Update - September 2009

Maine Expands Services Tax Base 

Recently enacted tax reform legislation broaden the application of sale and use tax fees charged to a host of  amusement, entertainment and recreation venues. In addition this legislation touches installation, repair and maintenance services to a variety of tangible personal items, certain personal services and transportation and courier services.

The effective date is January 1, 2010. Please note this legislation also contains nonstandard rate increases some of which are effective as soon as 10/1/2009.  Below is a partial list of taxable and nontaxable fees and services.

Amusement, Entertainment and Recreation Fees  

Taxable: Fees charged for theaters, movies, lectures, concerts, festivals, amusement parks, water parks, fairgrounds, race tracks, carnivals, circuses, sports activities, stadiums, amphitheaters, museums, planetariums, animal parks, petting zoos, aquariums, historical sites and convention centers.

Nontaxable: Fees charged for licensed agricultural fairs, fairs organized by a school or incorporated nonprofit organization if all the proceeds from the event or activity are used for the charitable purposes of the school or organization, fees charged by health clubs and fitness centers, and fees charged by museums and aquariums operated by a governmental entities or incorporated nonprofit organizations.

Installation, Repair and Maintenance Services

Taxable: Service charges for jewelry, cameras, guns, musical instruments, electronic and mechanical equipment, lawn and garden equipment, computer hardware, office equipment, vehicles, appliances and maintenance contracts on these items.

Nontaxable: Services charges for computer software, special mobile equipment, aircraft, and watercraft.

Personal Property Services

Taxable: Service charges for dry cleaning, laundry and diaper services not including self-service laundry services,  embroidery and monogramming, car washing, pressure cleaning and washing, and pet services such as exercising, sitting, training, grooming and boarding for nonmedical purposes.

Transportation and Courier Services

Taxable: Transportation and courier services mean transportation of persons or property by limousine and courier services.

To read more about this new law please visit Maine Revenue Services Website.

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