Rental of Vacation Property

 

Maine Sales and Use Tax applies to all so-called “casual rentals,” which includes “any kind of living quarters provided for human use.” [1]  Unless an exception applies, either the landlord or the property manager for all casual rentals must collect 7% use tax on the rental property.  There are two very limited exceptions to this rule. 

First, no use tax is due if the property is rented for no more than 14 days in any calendar year, and the owner does not employ a rental or management company.  Use of a professional rental manager negates the exception.

Second, rentals which are for MORE THAN 28 days, and are either a primary residence or rented in connection with education or employment are tax exempt. 

Call Attorney Wes Crowell with any questions

 
[1] Maine Revenue Service Bulletin No 32, Section 1.

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