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A lease is a legal, binding contract outlining the terms under which one party agrees to rent property owned by another party. It guarantees the tenant or lessee use of the property and guarantees the property owner or landlord regular payments for a specified period in exchange.
Yes. Numerous short-term rental hosts in Maine file several state and local lodging tax returns every year. For many, filing solutions such as MyLodgeTax can relieve this burden.
In Maine, you will normally be allowed a credit for sales or use tax paid in another state for tangible personal property used in Maine. The amount of the credit may not exceed the amount of the Maine tax. Lease and rent payments are not subject to sales and use tax when they are not considered to be purchases.
All short term rental owners or operators must register with the Maine Revenue Service and collect and remit Maine State Sales Tax. This amounts to 9% of the listing pricing including cleaning and guest fees and applies to casual rentals (fewer than 15 nights a year) as well as long term rentals (28 days or longer).
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.
Many of our wedding couples ask about Maine taxes: there are just two taxes that apply to event venues: (1) prepared food & beverage sales tax (catering, bartending) and (2) lodging tax.