Maine Notification to Buyer(s) of Withholding Tax Requirement

Notification to Buyer(s) of Withholding Tax Requirement
REW-4
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Form REW-4

Maine Revenue Services
Income/Estate Tax Division - REW
Tel. 207-626-8473

Notification to Buyer(s) of Withholding Tax Requirement
36 M.R.S. § 5250-A provides that every buyer of real property in Maine must withhold tax in an amount equal to
2.5% of the consideration. Any buyer who fails to withhold the tax is personally liable for the tax. The withholding
required by § 5250-A must be transmitted to the State Tax Assessor with the appropriate REW-1 form within 30
days of the transfer of the real property.
A buyer is not required to withhold tax if:
(a) The	seller	furnishes	the	buyer	with	a	certificate	stating	that,	under	penalty	of	perjury,	as	of	the	date	of	the
transfer,	the	seller	is	a	resident	of	the	State	of	Maine;
(b) The	seller	or	the	buyer	has	received	from	the	State	Tax	Assessor,	a	certificate	stating	that	no	tax	is	due	on
the	gain	from	the	transfer	or	that	the	seller	has	provided	adequate	security	to	cover	the	liability;
(c) The	consideration	from	the	transfer	of	the	property	is	less	than	$100,000;
(d) Written	notification	of	the	withholding	requirements	of	36	M.R.S.	§	5250-A	has	not	been	provided	to	the
buyer;
(e) The	 seller	 is	 the	 State	 or	 an	 agency	 or	 a	 political	 subdivision	 of	 the	 State,	 the	 federal	 government	 or	 an
agency	 of	 the	 federal	 government,	 an	 organization	 exempt	 from	 income	 taxes	 pursuant	 to	 the	 Internal
Revenue	 Code,	 §	 501(a),	 an	 insurance	 company	 exempt	 from	 Maine	 income	 taxes	 or	 a	 subsidiary	 of	 an
insurance	company	described	in	24-A	M.R.S.,	§	1157	(5)(B)(1)	that	is	exempt	from	Maine	income	taxes;	or
(f) The property is being transferred via a foreclosure sale. Foreclosure sale means a sale of real property incident
to	a	foreclosure	and	includes	a	mortgagee’s	sale	of	real	estate	owned	property	of	which	the	mortgagee,	or
third-party	entity,	retained	or	took	ownership	as	the	result	of	an	unsuccessful	attempt	to	sell	the	property	at
the time of a previous foreclosure auction.
The	 undersigned	 buyer(s)	 acknowledge(s)	 receipt	 of	 this	 notification	 of	 the	 withholding	 tax	 requirements	 of	 36	
M.R.S. § 5250-A.
Buyer:	

Real	estate	escrow	person:

Name: _________________________________

Name: _________________________________

Signature: ______________________________

Signature: ______________________________

Date: __________________________________

Title: __________________________________

Buyer’s	Spouse	(if	applicable):	

Date: __________________________________

Name: _________________________________
Signature: ______________________________
Date: __________________________________
Note:	The	buyer,	or	real	estate	escrow	person,	must	retain	a	signed	copy	of	this	document.
Revised: December 2021