Understanding Sales Tax on Services in Maine: Exceptions and Service Provider Tax

• Maine generally does not charge sales tax on services, but there are exceptions.
• Maine has a service provider tax imposed at a rate of 6%.
• Taxable services in Maine include lodging rentals, car rentals or leases, prepaid calling services, electricity transmission and distribution, and extended service contracts on vehicles.
• Services subject to the service provider tax include cable and satellite television or radio services, fabrication services, rental of video media and equipment, rental of furniture and audio equipment, telecommunications services, installation, maintenance or repair of telecommunications equipment, and various community support and residential services.
• Some services are exempt from the service provider tax after 2024, such as private nonmedical institution services, community support services for persons with mental health diagnoses, community support services for persons with intellectual disabilities or autism, home support services, and group residential services for persons with brain injuries.

Source: taxjar.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---