| | | and records and would be eligible for a bad debt deduction for | | federal income tax purposes if the claimant were required to file | | a federal income tax return. |
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| | | 3. Subsequent collection.__If a deduction is taken for a bad | | debt under subsection 2 and the debt is subsequently collected in | | whole or in part, the tax on the amount so collected must be paid | | and reported on the return filed for the period in which the | | collection is made. |
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| | | 4. Refund authorized.__When the amount of the allowable credit | | exceeds the amount of taxable sales for the period during which | | the worthless account is written off, a refund claim may be filed | | as provided in section 2011. For purposes of this subsection, the | | date of overpayment is the due date of the return on which the | | credit could first be claimed. |
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| | | 5.__Claim by service provider.__If the seller has selected a | | certified service provider as an agent to perform all the | | seller's sales or use tax functions, the certified service | | provider may claim the credit provided by this section on behalf | | of the seller. The certified service provider must credit or | | refund the full amount of any refund or credit received to the | | seller. |
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| | | 6.__Application of payments.__For the purpose of reporting a | | payment received on a previously claimed worthless account, any | | payments made on a debt or account are applied first | | proportionally to the taxable price of the property or service | | and the sales tax thereon and secondly to interest, service | | charges and any other charges. |
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| | | 7. Allocation.__The bad debts under subsection 2 may be | | allocated among the member states if the books and records of the | | person claiming the bad debt allowance support such an | | allocation. |
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| | | Sec. 38. 36 MRSA §1812, sub-§1, as reallocated by PL 1999, c. 790, Pt. | | A, §48, is repealed and the following enacted in its place: |
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| | | 1.__Computation.__Every retailer shall add the sales tax | | imposed by section 1811 to the sale price on all sales of | | tangible personal property and taxable services that are subject | | to tax under this Part. The tax when so added is a debt of the | | purchaser to the retailer until it is paid, and is recoverable at | | law by the retailer from the purchaser in the same manner as the | | sale price.__When the sale price involves a fraction of a dollar, | | the tax computation must be carried to the 3rd decimal place, | | then rounded down to the next whole cent whenever the 3rd decimal |
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