18-125 C.M.R. ch. 318, § 5 - Purchases subject to exemption
A.
Generally.The purchaser of a vehicle, railroad rolling stock, aircraft,
or watercraft may claim the
36 M.R.S.
§1760(41-A) exemption
at the time of purchase or use or pay the sales or use tax due and later
request a refund.
B.
Purchases from a dealer registered to collect Maine sales tax.When
the sale of a vehicle, railroad rolling stock, aircraft, or watercraft is
claimed to be exempt as an instrumentality of interstate or foreign commerce,
the seller must submit, with the sales tax report on which the sale is claimed
to be exempt, an affidavit of exemption that has been properly completed and
signed by both the seller and the purchaser, on a form prescribed by Maine
Revenue Services.
C.
Purchases at casual sale or outside the State.When a vehicle is
purchased at casual sale or from a dealer outside the state, the purchaser must
indicate on the vehicle use tax certificate that the property qualifies for
exemption as an instrumentality of interstate or foreign commerce. Maine
Revenue Services may subsequently require the purchaser to complete and submit
an affidavit of exemption. Failure to return a properly completed affidavit of
exemption when requested may subject the purchaser to assessment of use
tax.
D.
Affidavit of
Exemption.The affidavit of exemption must either indicate a currently
valid Interstate Operating Authority number issued by the Federal Motor Carrier
Safety Administration to the person shown as the purchaser of the vehicle, or
be accompanied by a complete explanation of how the vehicle is used as an
instrumentality of interstate or foreign commerce without such
authority.
E.
Payment of
tax.If the purchaser who has claimed the exemption finds that the
vehicle does not qualify for the exemption because it was not placed in use as
an instrumentality of interstate or foreign commerce within 30 days (90 days
with good cause) from the date of purchase, or because it was not or will not
be used 80% of the days in use as an instrumentality of interstate or foreign
commerce during the first two years from the date the property is placed in
service, the purchaser is liable for use tax plus all accrued interest. In the
case of a vehicle purchased from a dealer registered to collect Maine sales
tax, interest accrues from the 15th day of the month that follows the month the
vehicle was purchased. In the case of a vehicle purchased outside Maine or at
casual sale, interest accrues from the 15th day of the month that follows the
month of first use of the vehicle in Maine. The purchaser must report and pay
use tax directly to Maine Revenue Services. Payment of the use tax should be
accompanied by a letter of explanation.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.