We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
Earlier this year, Maine adopted a new use tax amnesty program.
Last week, Maine Revenue Services sent out the
“Special Use Tax Return” to be used by
taxpayers who wish to participate in the program.
Maine use tax is a substitute for Maine sales tax for
transactions in which Maine’s 5% sales tax has not been
collected, e.g., purchases made over the internet, by
catalogue or out-of-state, or when a business withdraws goods from
inventory for its own use. Use tax applies to businesses
and individuals and is imposed at the same rate as sales
tax. In general, the same exemptions that apply to sales
tax also apply to use tax. Maine provides a credit
against use tax for sales taxes paid in another
state.
If a taxpayer fails to timely pay use tax, Maine Revenue may
impose civil penalties and interest, and the Attorney General may
criminally prosecute under certain circumstances.
Under the new amnesty program, a taxpayer will be absolved from
use tax liability, civil penalties, and criminal prosecution with
respect to use tax incurred before January 1, 2012, if the
taxpayer:
Files a proper and accurate Special Use Tax Return before
November 30, 2012;
Fully and accurately reports the taxpayer’s proper
use tax liability for the years 2006 through 2011; and
Pays the use tax liability for the three years between 2006 and
2011 in which the use tax liability is highest. The use
tax liability for the three years between 2006 and 2011 in which
use tax is lowest, as well as years before 2006, need not be
paid.
The tax liability for the three highest years must be paid
before November 30, 2012. However, the assessor is
authorized to enter into an installment arrangement as long as the
tax is fully paid by May 31, 2013.
The Special Use Tax Return can be found here,
and the legislation authorizing the program can be found
here.
The content of this article is intended to provide a general guide
to the subject matter. Specialist advice should be sought about your
specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
President Barack Obama released his proposed budget for the government's fiscal year 2014 on April 10, 2013, and, not surprisingly, the budget contains a number of revenue-raising tax provisions.
Whether your company is exposed to multistate taxation depends on many factors, including the nature of your business, the tax laws in each of the states in which you do business, and your activities in those states.
The staff of the Senate Finance Committee recently issued the seventh in a series of reports outlining alternatives for the members of the committee to consider as they begin work on tax reform legislation.
In light of the potential unintended consequences of the Multistate Tax Compact and the California Court of Appeal’s decision in Gillette, some states have begun to withdraw from the Compact.
What Do Mid-Market Organizations Need To Know About Tax Reform?
