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

How to find a Tax Professional posted on Apr 26

How to find a Tax Professional

A tax professional can help prepare your taxes or represent you in an appeal or collection case. So, how do you find the right tax professional for you? We have a few tips to help you.

Tips for a Successful Tax Filing Season posted on Apr 26

Tips for a Successful Tax Filing Season

Check out these useful tips to help you have a successful tax filing season this year.

Free eFile Options for MA Taxpayers posted on Mar 26

Free eFile Options for MA Taxpayers

Learn how to e-file your taxes this tax filing season. It’s easy, secure and it’s free for most Massachusetts taxpayers. Get started today.