18-125 C.M.R. ch. 301, § 4 - Sales to Retailers Without Active Resale Certificates

1. Registered retailers reporting annual gross sales less than $3,000 will not be issued a resale certificate and will therefore be required to pay Maine sales tax when they purchase items for resale. These retailers may claim a credit on their sales and use tax return for the tax they paid on items that are placed in inventory for resale, subject to the limitations provided in 36 M.R.S. §1811-B.

2. An active registered retailer does not have the option of paying tax to its suppliers and claiming a credit on its sales and use tax return for the tax paid when purchasing items for resale that are of the type or types ordinarily purchased for resale by that purchaser.

3. If a retailer does not qualify to receive a resale certificate at the time of registration, or reissuance of a resale certificate, but subsequently has annual gross sales of $3,000 or more, the retailer may request that the State Tax Assessor review its eligibility for a resale certificate.

Notes

18-125 C.M.R. ch. 301, § 4