Maine allows certain individuals who collect sales tax on casual rentals of living quarters to report and remit that tax on their individual income tax return instead of filing separate sales tax returns, provided they meet eligibility requirements and the tax due does not exceed the filing threshold.

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 enter sales tax on casual rentals and living quarters, follow the instructions below:

TaxAct Online

1. From within the TaxAct return, navigate to the State tab from the side menu.
2. Click Massachusetts under the State tab to access the Massachusetts Quick Q&A Topics screen.
3. Click Tax Additions to expand that category and then click Sales tax on causal rentals of living quarters.
4. Enter the sales tax on casual rental of living quarters.

Desktop

1. From within the TaxAct return, navigate to the Q&A tab via the menu bar at the top of the program.
2. Navigate to the State tab and click Continue.
3. Click Yes to start the State Q&A process.
4. Navigate to the Summary portion of the return and click Review Q&A Topics.
   • You can access this quickly via the Topics Assistant (found under Tools).
5. On the Maine Quick Q&A Topics screen, click Tax Additions and select Sales tax on casual rentals of living quarters.
6. Enter the sales tax on casual rental of living quarters.