Get Me Business Equipment Tax Exemption Application 2018-2024

Homestead Exemption -This program provides a measure of property tax relief for certain individuals that have owned homestead property in Maine for at least 12 months and make the property they occupy on April 1 their permanent residence.

Maine Tax on Retirement Benefits: Maine does not tax Social Security or Railroad Retirement benefits. Military benefits are also tax-exempt. Retirees who receive MainePERS benefits may qualify for a pension exclusion of up to $30,000. The exclusion increases to $35,000 in 2024.

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.

Maine law specifies that all personal property associated with a business is subject to property taxation. Personal Property is defined as tangible property including, but not limited to, furniture and fixtures, machinery and equipment, and computer equipment.

The sales tax rate in Maine is currently 5.5% for tangible personal property and taxable services. However, a few transactions are subject to their own unique sales tax rates: 8% on the sale of prepared food and alcoholic drinks sold in certain establishments. 9% on specified living quarter rentals.

The tax is imposed on the providers of: Cable and satellite television or radio services. Fabrication services. Rental of video media and video equipment. Rental of furniture, audio media and audio equipment pursuant to a rental- purchase agreement. Telecommunications services.

Customer Exemptions Depending on the state, these may include government entities, non-profits, and schools, to name a few. It is the buyers' responsibility to provide their exemption certificates in order to not be charged sales tax, and sellers need to keep documentation of these exemptions on file.

Business Equipment Tax Reimbursement ("BETR") Program The BETR program reimburses taxpayers for local property taxes paid on most qualified business property. Qualified business property must have been placed in service between April 1, 1995 and April 1, 2007, or after April 1, 1995 for retail property.