Post Content

On Nov. 2, voters in Massachusetts cast a majority of ballots in favor of restoring the sales tax exemption for beer, wine and alcohol.

Thus, on Jan. 1, 2011, the 6.25 percent sales tax on those items that has been in effect since August 1, 2009, literally disappears, and the sale of beer, wine and alcohol sold in markets or package stores returns to tax exempt status.

DOR has issued a Technical Information Release on the repeal of the alcohol sales tax. The TIR reminds taxpayers and business owners that the state and local option meals tax, which include sales tax on drinks sold in bars and restaurants, remains in effect.

The sales tax on alcohol is estimated to have generated about $97 million in FY10 and, had it been effect for the entirety of FY11, about $110 million. DOR estimates the elimination of the tax will produce a FY11 collection diminished by about $46 million.

Not surprisingly, package store owners, who strongly backed the repeal, are in a celebratory mood about ringing in a new year without the alcohol sales tax. Today's Boston Herald reports that owners will be toasting the repeal with a symbolic dumping of alcohol into Boston Harbor next week.

If consumers find a sales tax on their package store purchase of beer, wine or alcohol as of Jan. 1, they should call DOR customer service at 1-800-392-6089 to report if they are unable to obtain a refund at the store.

Written By:

Recent Posts

MA Filing Extension to April 18th Announced posted on Apr 15

The Department of Revenue’s WebFile tool, which allows individuals to electronically file state personal income tax returns, has experienced delays due to heavy volume over the past few days. DOR is actively working to resolve this issue, and has extended the deadline for taxpayers to   …Continue Reading MA Filing Extension to April 18th Announced

WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds posted on Mar 13

Here’s another unfortunate addition to the list of financial things to protect yourself from.  DOR has learned that letters of questionable origin are being sent to taxpayers with outstanding tax liens. Although these notices show amounts from actual tax liens, they are not from the Massachusetts   …Continue Reading WARNING: Tax Lien Notices NOT issued by DOR Making the Rounds

Don’t Let a Hacker Steal YOUR Refund posted on Mar 11

There are some rabbit holes you definitely don’t want to fall down during tax season. One such hole, and an increasingly-common nightmarish scenario, is finding out your tax refund has been stolen. In a recent article, Allison Martin of Money Talk News was the bearer   …Continue Reading Don’t Let a Hacker Steal YOUR Refund