I've owned and managed vacation rentals now since 1999 and in two states, and 4 cities. Only one of these is in the 21st century. Only one of these sends emails when something changes in the code. Only one of these has a real definitive plain language bulletin. Only one of these allows filing and payment online. Yes, it's Maine.
Here's what's important for vacationers (and vacation rental and lodging owners) to know:
- Stays of 28 days or more are exempt from tax.
- All charges are taxable that are associated with your stay in a room, cabin, vacation rental. These include damage deposits, cleaning fees, pet fees, crib rentals.
- If you cancel your vacation stay prior to the day of arrival, your cancellation fee is not taxable. Wait until the day of arrival, and yup, you pay tax on your cancellation fee.
- If an owner rents their place out less than 15 day a year then they do not have to collect or pay taxes on those rents.
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| Mid Coast Maine Waterfront Vacation Rental |
Most importantly: If you rent a place in Maine and the owner or manager is not charging you tax on your stay of less than 28 days, it should send up a RED FLAG! If the owner doesn't pay and collect the proper taxes, what else don't they do? Will the place be shut down before you arrive? Are they just out to make a quick buck or do they take their vacation rental seriously?
Maine is my favorite place to visit in large part because I associate it with my personal slice of heaven and because it's so peaceful and in some ways isolated and insulated. That said, Maine is in no way a backward state. Curious about the other state & cities that haven't quite got it together? Yup, California.
I share my little slice of heaven in mid-coast Maine if you care to check it out.
