Maine Utility Sales Tax Exemption

Manufacturers and industrial processors with facilities located in Maine, may be eligible for a utility tax exemption. Maine offers an exemption from state sales tax on the purchase of electricity, natural gas, and water used in qualifying production activities. This tax exemption is authorized by 36 M.R.S. § 1760(9-D).

Exemption Language of 36 M.R.S. § 1760(9-D)

"The sale of all other fuel and electricity used at a manufacturing facility is 95% exempt from sales tax. The remaining 5% is subject to the general sales and use tax rate. In the dual-use context the customer must break down to the nearest 10% the taxable and nontaxable portions."

Utility Study Requirement for Exemption Qualification

A Maine utility tax study must list every piece of equipment and appliance (production and non-production) that uses the utility and the annual consumption of each. Failure to properly calculate or classify utility usage is cause for denial of the exemption. A square footage analysis may also be appropriate in Maine.

Maine Statute of Limitations on Tax Refund

3 years

State Sales Tax Rate: 5.5%

Average Local Sales Tax Rate: 0%

Helpful Resources

Maine Utility Exemption Certificate: Exemption Certificate ST-A-117

Maine Utility Exemption Statute/Rule: 36 M.R.S. § 1760(9-D)

Maine Claim Form for Tax Refund: Go to utility provider for refund.