Form Rew-4 - Notification To Buyer(S) Of Withholding Tax Requirement

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FORM REW-4
MAINE REVENUE SERVICES
Income/Estate Tax Division - REW
P.O. Box 1064
Augusta, ME 04332-1064
Tel. 207-626-8473
Fax 207-624-5062
NOTIFICATION TO BUYER(S) OF WITHHOLDING TAX REQUIREMENT
36 MRSA § 5250-A provides that every buyer of real property in Maine must withhold tax in an amount equal to 2.5%
of the consideration. Any buyer who fails to withhold the tax is personally liable for the tax. The withholding required by §
5250-A must be transmitted to the State Tax Assessor within 30 days of the transfer of the real property.
A buyer is not required to withhold tax if:
(a) The seller furnishes the buyer with a certifi cate stating that, under penalty of perjury, as of the date of the
transfer, the seller is a resident of the State of Maine;
(b) The seller or the buyer has received from the State Tax Assessor, a certifi cate stating that no tax is due on the
gain from the transfer or that the seller has provided adequate security to cover the liability;
(c) The consideration from the property is less than $50,000;
(d) Written notifi cation of the withholding requirements of 36 MRSA § 5250-A has not been provided to the buyer;
(e) The seller is the State or an agency or a political subdivision of the state, the federal government or an agency
of the federal government, an organization exempt from income taxes pursuant to the Internal Revenue Code, §
501(a), an insurance company exempt from the tax imposed by 36 MRSA § 5250-A or a business entity referred
to in Title 24-A, § 1157 (5)(B)(1) that is exempt from the tax imposed by this part; or
(f) The property is being transferred pursuant to a foreclosure sale when the consideration paid does not exceed
the debt secured by the property held by a mortgagee or lien holder, or a mortgagor conveys the property to a
mortgagee in lieu of foreclosure and with no additional consideration.
The undersigned buyer(s) acknowledge(s) receipt of this notifi cation of the withholding tax requirements of 36
MRSA § 5250-A.
BUYER(S):
______________________________________
___________________________________
______________________________________
______________________________________
By: ________________________________
______________________________________
Title: _______________________________
______________________________________
____________________________________
Rev. 12/11

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