On Apr. 12, ME LEG passed bill regarding tangible personal property.
ME LEG passed LD 2000 / HP 1278, act to change taxation of rental tangible personal property, consistent with predominant method in other States' rental industry laws.
Allows rental, leasing companies to purchase exempt from taxation all rental fleet and tangible personal property for resale, require rental companies to collect sales tax.
Includes limited refund opportunity for use tax paid on the purchase of rental fleet and tangible personal property by rental and leasing companies prior to Jan. 1, 2024.
In addition, does not affect the lease or rental of trucks and truck tractors from a person primarily engaged in business of leasing or renting trucks and truck tractors.
Legislative History
On May 23, 2023, bill introduced in the Senate; on Apr. 12, 2024, bill passed Senate.
On May 23, 2023, bill introduced in the House; on Apr. 12, 2024, bill passed House.
Effectiveness
Act applies to retail leases or rental contracts entered into on or after Jan. 1, 2024.
Apr. 2024 ME LEG Govenor Approval
On Apr. 26, 2024, ME LEG reported governor signed bill into law, assigned Ch. 673.
For sales, rentals of tangible personal property, taxable services on/after Jan. 1, 2025.
Each time period for which lease/rental payment is charged is considered separate sale
Document dated Apr. 26, received from ME LEG May 7, summarized on May 10, 2024.
