Post Content

DOR recently heard about a consumer who paid sales tax on both the price of the beer and the bottle deposit.

To be clear as possible on this, sales tax should be charged on the price of the item(s) before the cost of the bottle deposit is added to the bill. No sales tax should be charged on the cost of the deposit.

In a foot note to Technical Information Release (TIR) 09-11 distributed last summer, DOR wrote that "In calculating the sales tax on alcoholic beverages subject to the container deposit law (beer and malt beverages), G.L. c. 94, §§ 321 – 327, the container deposit is not part of the sales price subject to tax."

If your local package store is charging sales tax on both the price of the product and the bottle deposit, tell them they are doing so improperly and ask them to give you a bill without sales tax on the bottle deposit. And if they do not correct their error, please call DOR's Taxpayer Advocate at 617-626-2201.

One other note — please save the incorrect sales receipt as proof that the error occurred.

Written By:

Recent Posts

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