Direct Payment Permits Form - Maine Revenue Services (Page 2 of 3) in pdf

direct payment permits shall not authorize anyone to whom they have issued a direct

payment permit to file the direct payment permit or permit number with a third party.

Sales tax registrations held by holders of direct payment permits will be placed on

an inactive basis and accrued sales and use tax liabilities will be reported on sales and use

tax returns which will be issued under the direct payment permit number.

SECTION 4. Exceptions and Restrictions

1. Sales tax shall be paid to the retailer on the following types of purchases:

A. Purchases of prepared food;

B. Purchases of taxable services;

C. Purchases of services taxable under Title 36 Chapter 358 (Service Provider

Tax); and

D. Interim rentals under Section 1758.

2. A permit holder may not authorize a contractor or lessor to use its permit for

the purposes described in Paragraphs A and B below. Any such authorization constitutes

grounds for revocation of the permit in accordance with Section 5, Subsection 2.

A. Purchases of Real Estate. Contracts for the construction of real estate, the

provisions of which require the incorporation of tangible personal property into

the real estate of a permit holder prior to passage of title, shall not use a direct

payment permit or permit number in any way that infers that such tangible

personal property purchased by the contractor may be purchased tax free under a

direct payment permit. It will be deemed that passage of title to the permit holder

does not occur prior to incorporation into real estate unless specifically stated in

the contract.

B. Leases. Leases (other than leases in lieu of purchase) covering the lease of

tangible personal property to a holder of a direct payment permit shall not include

a direct payment permit number, nor shall the use of direct payment permit

numbers in any way infer that tangible personal property to be purchased by the

lessor for lease to the holder of a direct payment permit may be purchased tax free

under a direct payment permit.

The direct payment permit holder (lessor) is responsible for payment of the sales

and use tax liability, regardless of whether the lease requires the lessee to

reimburse the lessor for any taxes incurred by the lessor on leased property.

SECTION 5. Revocation of Direct Payment Permit

1. The holder of a direct payment permit who wishes to surrender such permit

voluntarily must provide the State Tax Assessor with 30 days notice.

2. The State Tax Assessor may revoke a direct payment permit at any time for

failure of the taxpayer to comply with the conditions under which the permit was granted,

or for any improper use of the permit.

3. Within 30 days after receipt by a permit holder of notice of revocation by the

Direct Payment Permits Form - Maine Revenue Services Page 2