A new set of sales-related tax rates are set to take effect. Beginning August 1, the sales tax and the meals tax will increase from 5 percent to 6.25 percent. This new rate will also apply to the sale of automobiles. Also on August 1, the sales tax exemption currently in effect for beer, wine and alcohol sold in package stores will be lifted and those items will be taxed as well at 6.25 percent.
There are new local option meals and rooms tax rates as well that will take effect October 1 if enacted. Deciding whether to enact these new rates is a decision left to each individual city and town governing body.
The new local option taxes are an increase of.75% for meals and up to a 2 percent increase in the rooms tax. Communities that enact either or both of these new rates will garner the revenue collected from these higher rates. To enact these new rates in time for October 1 implementation, cities and towns must approve the new rate(s) not later than August 31, and then inform the Department of Revenue's Division of Local Services immediately to ensure that revenue collected from the new local option taxes is properly credited to each city and town.
For the first time, the Commonwealth will collect a 5 percent gross receipts tax on receipts of satellite television providers from subscriptions. This is also set to take effect on August 1.
VIDEO: Introducing MassTaxConnect! posted on Aug 24
Take a look at our newest video introducing you to MassTaxConnect, our new, modernized online tax system. Hear from Commissioner Mark Nunnelly and several DOR employees about what to expect come November 30th when we launch MassTaxConnect for business taxpayers, practitioners, and professionals. Get an …Continue Reading VIDEO: Introducing MassTaxConnect!
What’s New with MassTaxConnect? posted on Aug 13
MassTaxConnect for Massachusetts Business Taxpayers Available November 30, 2015! Things are about to get easier and faster for Massachusetts business taxpayers. MassTaxConnect will replace WebFile for Business later this year and will feature the best of what WFB offers plus state-of-the-art enhancements to make tax …Continue Reading What’s New with MassTaxConnect?
F.A.Q. Everything you Need to Know about the Sales Tax Holiday posted on Aug 10
Last week the state legislature passed and Governor Charlie Baker signed into law the Sales Tax Holiday that will officially suspend the state’s 6.25% sales tax for the upcoming weekend of August 15th and 16th. State policymakers have passed an annual summer’s sales tax holiday …Continue Reading F.A.Q. Everything you Need to Know about the Sales Tax Holiday