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.
Your Mass State Taxes Made Easier posted on Mar 9
With the tax season now in full swing, there are several resources at your fingertips to make filing your taxes hassle-free. Enhanced Website Earlier this year, we launched a new DOR homepage, making it faster now to find exactly what you need to file and …Continue Reading Your Mass State Taxes Made Easier
3 Steps to Catch Up on Back MA Taxes While Avoiding Penalties posted on Mar 4
Watching a game-winning goal in overtime is as exciting as hockey gets. With DOR’s MA TAX AMNESTY 2016, you can stay out of the penalty box by paying only what you owe. Read on to find out more. What is MA TAX AMNESTY 2016? It’s …Continue Reading 3 Steps to Catch Up on Back MA Taxes While Avoiding Penalties
EITC – Helping Low and Moderate Income Families in MA posted on Jan 29
EITC, also known as the Earned Income Tax Credit, has been helping low to moderate income families in Massachusetts and across the country for over 40 years. In recent months, Governor Charlie Baker and members of the Legislature have worked hard to ensure that working …Continue Reading EITC – Helping Low and Moderate Income Families in MA