If you choose to report sales tax on casual rentals of living quarters on you Maine income tax return in lieu of reporting the amount on the Maine’s sales tax returns, multiply the rentals received by 7% (0.07).

Casual rentals include the rental of a house, cottage, condominium unit, vacation home, camp or any other place kept, used, maintained, advertised or held out to the public as a place where living quarters are offered for rent to transient guests or tenants.

If the sales tax on casual rentals of living quarters is greater than $2,000 or you have any other sales tax collections to report other than Use Tax, you must file a sales/use tax return to report all sales tax you owe to the State of Maine.

To report this tax using TaxACT:

1. From within your TaxACT return (Online of Desktop) click on the State Q&A tab and then click Maine directly below the blue tabs
2. Click Tax Additions to expand that category and then click Sales tax on causal rentals of living quarters
3. Enter the sales tax on casual rental of living quarters

This sales tax will be shown on Line 31a of Form 1040ME.