Sales/excise Tax Division Instructional Bulletin No. 12 Page 3
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12worship and a number of other types of organizations. Organizations that qualify for
exemption must obtain exemption certificates from Maine Revenue Services in accordance
with Rule 302, and sales should be made tax-free to these organizations only when the
purchaser furnishes a copy of its exemption certificate to the seller. The exemption does not
apply to the clergy, staff or employees of exempt organizations.
c. Sales For Resale. Occasionally a grocer may make sales to other registered sellers for
resale. Sales for resale are not taxable. When making sales for resale, the grocer should
obtain a resale certificate from his customer as provided in Rule 301.
Sales for resale at casual sale, rather than in the regular course of business of a registered
seller, are taxable. For example, the sale of soft drinks for resale by a church group at a
bazaar, where the church group is not in the business of selling and is not registered under the
Sales and Use Tax Law, is taxable.
d. Sales of Items Paid With Federal Food Stamps. Sales paid with federal food stamps
distributed by the Department of Human Services are exempt from sales tax. Items eligible
for purchase with food stamps that are not otherwise exempt under current law include soft
drinks, snack food, ice and cold sandwiches. When a retailer receives food stamps as partial
payment toward a purchase, the dollar value of the food stamps must be applied first to
otherwise taxable items, eligible to be purchased with food stamps, in order to determine what
portion is exempt from sales tax.
EXAMPLE 1: A person purchases $50.00 worth of groceries. Payment is made using
$40.00 of food stamps and $10.00 cash. The purchase includes $40.00 of eligible items
broken down as follows:
$35.00 exempt items
$ 5.00 eligible taxable items
In this example the dollar value of the food stamps ($40.00) is first applied against the
purchase of the eligible taxable items ($5.00). Thus the $5.00 of eligible taxable items would
become exempt.
EXAMPLE 2: A person purchases $10.00 worth of groceries, all eligible to be purchased
with food stamps. However, payment is made using $3.00 worth of food stamps and $7.00
cash. The purchase is broken down as follows:
$6.00 exempt items
$4.00 eligible taxable items
In this example the dollar value of the food stamps ($3.00) is first applied against the purchase
of the eligible taxable items ($4.00). Thus only $3.00 of eligible taxable items would become
exempt. The remaining $1.00 would still be taxable.
Page 3
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial