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.
Class in Session at DOR University posted on Jan 20
Looking to educate yourself this tax season? Want to learn more about tax options, or DOR-related issues? All this can be achieved at DOR University, the Department of Revenue’s free online e-learning module. DOR University, created to offer free tax education to the public and …Continue Reading Class in Session at DOR University
Multi-agency investigation in two states leads to charges posted on Nov 19
Earlier this year, the Massachusetts Illegal Tobacco Commission, chaired by DOR Commissioner Amy Pitter, released a report on the illicit tobacco trade which recommends that teaming up with federal, state and local law enforcement can be a successful model for combatting such criminal activity. And …Continue Reading Multi-agency investigation in two states leads to charges
Top priority: protecting the taxpayer and the Commonwealth’s revenue posted on Oct 8
With identity theft on the rise, the Massachusetts Department of Revenue is taking new steps to combat the problem and protect taxpayers. In some cases, this means asking taxpayers to take a quiz before getting their state refund check. DOR is teaming up with LexisNexis …Continue Reading Top priority: protecting the taxpayer and the Commonwealth’s revenue