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:
- Taxable Rentals: The law imposes a tax on the rental of living quarters in any hotel, rooming house, tourist camp, or trailer camp, including casual rentals
- Registration Requirement: Every person who owns, manages, or operates a rental property, whether in the regular course of business or on a casual basis, must register for and collect Maine sales tax on the rentals
- Exemptions: Casual rentals for fewer than 15 days each calendar year are generally exempt from sales tax. However, if the property is managed by a real estate agent or another person engaged in the business of renting or managing rentals, sales tax must be collected regardless of the rental duration - see resource here for details.
