Sales tax rules are complex and vary greatly depending on the nature of your business. For example, the rules for funeral homes are different from the rules for photographers. If you own a lodging establishment with a restaurant and gift shop, your sales tax obligation will vary depending on the business conducted. It can be very confusing.
The good news is, there is help out there. I recently met the director of Maine Revenue Services. They understand that the laws and statutes regarding sales tax can be daunting for businesses, so they are doing their best to make it a lot easier for you. In fact, if you go to their website you can find instructional bulletins for a large variety of businesses and review them for your type of business to understand your obligation when it comes to collecting sales tax. They’ve done a great job of putting this information in simple language, making it easy for businesses to understand.
So if you find yourself wondering “to collect or not to collect,” there is help available!