18-125 C.M.R. ch. 321 — Rule 321. Meals Provided in the Wild

MAINE REVENUE SERVICES
SALES/EXCISE TAX DIVISION
RULE NO. 321
MEALS PROVIDED IN THE WILD
SUMMARY: Explains the application of the Sales and Use Tax Law to the provision of
meals in the wild by persons licensed as outfitters or guides by the Department of Inland
Fisheries and Wildlife, as required by P.L. 1985 c. 535 Sec. 29.
.01 Definitions.
A. Direct Costs. "Direct costs," when used in reference to a meal provided in the wild,
means the price paid by an outfitter or guide for the food so provided and any disposable
plates, napkins, tableware or other expendable items furnished with the meal.
B. Guide. "Guide" means a guide as defined by 12 M.R.S.A. Sec. 10001, Sub-sec. 28.
C. Indirect Costs. "Indirect costs" means overhead costs associated with the provision of
a meal in the wild. "Indirect cost" includes but is not limited to: depreciation and
operating expenses of equipment used for refrigeration, storage, preparation and cooking
of food products that comprise part of the meal; the pro-rata share of depreciation and
operating expenses of equipment used for transportation of the food, supplies and
equipment, including transportation of such items to a primitive campsite; the pro-rata
share of labor costs (including payroll taxes) for the procurement, storage, transportation,
preparation and cooking of the food, at a base camp and at a primitive, camping area, and
for the cleaning and maintenance of the campsite and equipment, and fuel and other
supplies used but not transferred to the customer as part of the meal.
D. In the Wild. "In the wild" means at a place other than a base camp, restaurant or
campground while on a trip or other expedition, and includes at a primitive camping area.
E. Outfitter. "Outfitter" means a commercial whitewater outfitter as defined by 12
M.R.S.A. Sec. 12901, sub-sec. 5.
F. Primitive camping area. "Primitive camping area" means a primitive camping area
as defined by 12 MRSA §10001, sub-§50.
.02 Meals provided in the wild.
The provision of a meal in the wild by an outfitter or guide constitutes a retail sale of
tangible personal property subject to the tax imposed by 36 M.R.S.A., Chapters 211 to
225. The value of a meal provided in the wild is its cost as determined pursuant to
Section 3 of this Rule, provided that the meal is furnished as part of a total service and
that the price of the service does not vary if the meal is not consumed. Sales tax is not
imposed on any portion of a meal that consists of game taken by the guide or the guide's
client.
.03 Cost of meals.
A. Price separately stated. If the price of a meal provided in the wild is stated as a
separate item in the charges for services purchased from an outfitter or guide, the tax base
of the meal is the price so stated, provided that the tax base may not be less then the cost
determined pursuant to subsection B.
B. Price not separately stated. If the price of a meal provided in the wild is not stated
as a separate item in the charge for a total service purchased from an outfitter or guide,
the cost of the meal is the sum of direct costs and indirect costs. In lieu of maintaining a
separate accounting of indirect costs, an outfitter or guide may elect to estimate indirect
costs at 15% of direct costs. No credit against the cost so determined is allowed on
account of food provided but not consumed. The cost of meals provided in the wild does
not include direct or indirect costs of meals provided to employees at no charge.
.04 Collection of tax. The State Tax Assessor has determined that because of the
unconventional manner in which meals are provided to customers by guides and outfitters
in the wild, the cost of the meal provided and the sales tax thereon need not be separately
stated from the rest of the total service charge.
EFFECTIVE DATE: July 21, 1986
AMENDED: November 12, 2006