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Non-Maine residents who sell real estate located in Maine are subject to a withholding amount equal to 2.5% of the sale price. This withholding is used as an estimated tax payment towards any Maine tax liability on the gain realized from the state.
Tax Exempt Items Food for human consumption. Manufacturing machinery. Raw materials for manufacturing. Utilities and fuel used in manufacturing. Medical devices and services.
A sales tax is imposed at the rate of 5.5% of the sale price on retail sales of tangible personal property; products transferred electronically; prepaid calling arrangements (not to be confused with prepaid wireless, which is addressed under ?Service Provider Tax? in this document); transmission and distribution of ...
Tax-exempt customers Some customers are exempt from paying sales tax under Maine law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
In some limited circumstances, a consumer may not have to pay retail sales tax in Maine. For instance, there isn't a tax on groceries and prescription drugs.
1. What is Maine real estate withholding? Maine law requires, at the time of closing on total considerations of $100,000 or more, that every buyer of real property must withhold 2.5% of the consideration from any nonresident individual, estate, or business seller.
Maine taxes both long- and short-term capital gains at the full income tax rates described in the income tax section above. This means that income from capital gains can face a state rate of up to 7.15% in Maine.
The Sales and Use Tax Law provides specific exemptions for a number of different kinds of organizations and institutions, such as hospitals, schools, churches and libraries, etc.