Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Maine.
November 5, 2025
Maine Repeals Service Provider Tax: Digital Streaming and Certain Services Shift to Sales Tax
Authored by: Bonnie Susmano, JD, MBA and Joe Petrucci
Maine enacted legislative changes (GIB 115, October 17, 2025) effective January 1, 2026, repealing the Service Provider Tax and moving previously taxable services (e.g., cable/satellite services, telecommunications services, fabrication services, and rentals under rental-purchase agreements) into the standard 5.5% sales and use tax base. Additionally, digital audiovisual and digital audio services—including subscription streaming—will now be taxed at 5.5%. The sales tax rate on adult-use cannabis products increases to 14% on or after January 1, 2026. New exemptions will also apply to durable medical equipment, breast pumps, and mobility-enhancing equipment for home or vehicle use. Providers currently registered only for the Service Provider Tax will need to transition to Sales and Use Tax registration for periods beginning January 1, 2026.
If you have questions about state sales and use taxes, please reach out to a member of the Withum SALT Team.
February 18, 2025
Maine – Credit Claim for Registered Retailer
Authored by: Courtney Easterday, MSA and Ryan Schupp
Maine Revenue Services recently announced registered retailers may no longer claim a credit for sales tax paid on items that are later sold at retail. Prior to this announcement, the law allowed a retailer to take credit for sales tax paid by the retailer on items when they are later sold at retail. This credit was originally designed to be used by retailers that report less than $3,000 in gross sales annually and may not have a resale certificate in the state.
Effective February 2025, registered retailers and businesses that have a resale certificate from Maine Revenue Services will no longer be able to claim credit for sales tax paid on goods purchased for resale on their returns. If a retailer is unable to issue a resale certificate, then a refund can be requested for the sales tax paid on a Sales Tax Refund Application.
If you have questions about how sales for resale exemptions affect your business, please contact a member of the Withum SALT Team.
February 7, 2025
Maine Shifting to “Lease Stream” Sales Taxation Starting January 1, 2025
Authored by: Emilia Jarrin and Katie Nguyen, CPA
Starting January 1, 2025, Maine will shift its sales tax imposition on tangible personal property, including electronically transferred products, leased or rented within the state, to apply to each periodic lease or rental payment made by the lessee. For leases initiated, renewed, or in effect on or after this date, lessors will be required to charge and collect Maine sales tax on each payment made by the lessee. Each lease or rental period for which a payment is charged will be treated as a separate sale. The sale price of a lease or rental of tangible personal property, including electronically transferred products, will generally include the total amount paid. It will also cover various charges such as maintenance, setup, transportation, administrative fees, late return charges, and others, regardless of whether they are separately stated.
Additionally, beginning January 1, 2025, the sale, lease, rental, or license of canned computer software or electronically transferred products will be considered taxable sales of tangible personal property. For additional information on Maine’s change to “lease stream” taxation, please refer to the Department’s Notice.
If you have questions about sales tax collections, please reach out to a member of the Withum SALT Team.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
Have Questions or Need Guidance?
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