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Maine Bill Will Abolish Taxes on RV Rental Firms

March 12, 2012 by · Leave a Comment 

Companies that rent recreational vehicles in Maine are trying to get a bill passed that would tax the renter of the RV instead of the actual owner, just as people who rent cars or movies are taxed.

WLBZ TV, Bangor, reported that a law that’s currently on the books states that any recreational vehicle that is in Maine for more than 24 hours is subject to a 5% tax. It’s a law that Maine Revenue Services has told businesses it doesn’t plan on enforcing. Yet a recent audit revealed that an RV rental company in Vermont owes nearly $300,000 to Maine in taxes for its rentals. RV rental company owners like Kit Coty are trying to get LD 1809 passed to tax the rental stream and not the product.

“Because people expect they’re going to pay a tax on a service they’re getting,” Coty said. “To charge a business tax up front for doing business is not feasible.”

WLBZ tried to contact Maine Revenue Services, but didn’t get a response. The bill was recently passed 10-1 by the Taxation Committee and is not waiting to be approved in appropriations.

 

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