Sales/excise Tax Division Instructional Bulletin No. 12
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12MAINE REVENUE SERVICES
(FORMERLY BUREAU OF TAXATION)
SALES/EXCISE TAX DIVISION
INSTRUCTIONAL BULLETIN NO. 12
GROCERS
This bulletin is intended solely as advice to assist persons in determining, exercising or
complying with their legal rights, duties or privileges. It contains general and specific information
of interest as well as interpretations and determinations by Maine Revenue Services regarding
issues commonly faced by your business. Portions of the Sales and Use Tax Law referred to in
this bulletin can be found at the end of the bulletin in Attachment #1. Also attached are applicable
Sales and Use Tax Rules.
The following instructions do not apply to retail locations that primarily sell prepared food.
The Maine Sales and Use Tax Law provides that sales of prepared foods are taxable. Persons
making sales of prepared food from a restaurant, sandwich shop, dairy bar or other similar
location, should refer to Rule 322, "Sales of Food Products," and Instruction Bulletin No. 27,
"Sales of Prepared Food."
1. EXEMPT SALES.
a. Nontaxable Items. The Maine sales tax does not apply to grocery staples ordinarily
consumed for human nourishment. It does not apply to publications, such as newspapers or
magazines, which are published on a regular schedule at least once in every three months. It
does not apply to seed, feed, hormones, fertilizer, pesticides, insecticides, fungicides,
antibiotics, weed killers, defoliants, litter and medicines used in agricultural and aquacultural
production. It does not apply to returnable containers when sold with the contents. The
following is a fairly comprehensive list of items sold by grocers, sales of which are not subject
to the tax. This list is not all-inclusive but is intended as a guide.
Baby foods
Butter
Chocolate for cooking
Bagels
Cake mixes
purposes, including
Baking cocoa
Cereals
Chocolate bits
Baking powder
Certo
Coconut
Baking soda
Cheese and cheese spreads,
Coffee, including instant
Bouillon cubes
including cheese in aerosol
coffee and international
Bread and rolls
cans
coffees
Corn starch
Jello
Unpopped popcorn
Dehydrated fruit and
Kerosene for home cooking
Rice
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