DOR has released its final report on the 2011 sales tax holiday weekend that occurred on August 13-14, estimating that the amount of sales tax revenue foregone was approximately $20.98 million, exceeding the estimate of $19.9 million from the 2010 sales tax holiday weekend.
Last summer, just prior to the holiday, DOR issued a preliminary estimate of $20.5 million in potential savings to consumers from the holiday weekend.
The most commonly asked question about this report is why can't DOR say precisely how much sales tax revenue was foregone to the Commonwealth and saved by taxpayers.
Sales tax is reported to the Commonwealth no later than the 20th of the month following. For example, information on December sales tax collections will not be reported until January 20th.
Retailers do not list individual transactions by date when they report that data, but simply lump together the entire amount of taxable retail sales for the month, and then apply the 6.25 percent sales tax and forward that amount to the Commonwealth.
As a result, DOR receives no reporting on the volume of taxable or untaxable sales on any given day or days. Individual retailers undoubtedly have some information on this, but they are not required to share it with DOR.
So in the absence of hard data, DOR estimates using the methodology outlined in the report.
Prep Early for Next Tax Season posted on May 20
Filing season is finally over and we know the last thing on your mind is next tax season. But did you know that if given more prep time, you could be saving yourself lots of stress and time? Start planning for next tax season now …Continue Reading Prep Early for Next Tax Season
DOR’s Participation in the Family Court Workshops posted on Apr 22
Once a month, the Department of Revenue’s Child Support Enforcement (CSE) lawyers and staff volunteer to be a part of the Family Court Workshops for Mothers and Fathers at the Suffolk County Probate & Family Court in Boston. The workshops, a joint venture between community …Continue Reading DOR’s Participation in the Family Court Workshops
DOR Ruling Favorable in First Circuit Judgment posted on Mar 17
The United States Court of Appeals for the First Circuit issued judgments in the Department of Revenue’s (DOR) favor last month, finding that taxpayers in Bankruptcy proceedings cannot discharge late filed tax returns. The court consolidated two similar cases brought before them involving a total …Continue Reading DOR Ruling Favorable in First Circuit Judgment