I collect $1800 per month from my tenant, and I've reported it on my Federal return. On my Maine state return, should I answer "Yes" to the question about Sales Tax on Casual Rentals of Living Quarters?
Yes, you should generally answer "yes" to the question about Sales Tax on Casual Rentals of Living Quarters on your Maine state return. According to Maine Revenue Services Sales, Fuel & Special Tax Division Instructional Bulletin No. 32, the Maine Sales and Use Tax Law imposes a tax on the rental of living quarters, including casual rentals. Since you collect $1,800 per month from your tenant, this qualifies as a taxable rental.
Here are some key points from the bulletin: