To prevent against resale fraud and further loss in tax revenues, Maine has established new resale certificate procedures that will help to ensure only legitimate retailers are avoiding payment of tax on items intended for resale. Effective July 30, 2004, only active registered retailers that have more than $10,000 in annual gross sales will be acknowledged for the resale exemption. The Maine Revenue Service (MRS) will issue a new Annual Resale Certificate to the aforementioned retailers, with all existing resale certificates set to expire on September 15, 2004. The MRS had previously instructed all retailers that after August 15, 2004, the old resale certificates would no longer be valid. However, because of delayed mailing, the date has been extended to September 15th.
The MRS has plans to develop an electronic process for large businesses in the future. Until then, retailers will be required to update their files annually. Retailers are reminded to keep other resale certificates on file for the required six year statute of limitations. In December of each year, new accounts will be evaluated and the MRS will issue new certificates to registered retailers with greater than $10,000 in annual gross sales. Retailers with annual gross sales of less than $10,000 will not be issued an Annual Resale Certificate but will be required to pay sales tax on purchases and claim a credit on their sales tax return. Out-of-state retailers may continue using the Multistate Tax Commission issued, Multijurisdictional, “Uniform Sales & Use Tax Certificate” to document their exempt purchases. (Informational bulletin, “Resale Law Changes Effective July 30, 2004” Maine Revenue Services, Issued June 10, 2004 and Notice: Resale Law Changes, Maine Revenue Services, August 5, 2004.)