Massachusetts’ Economic Nexus Regulation to be Enforced Retroactively; DOR Says its Regulation Not Impacted by Wayfair

In the days immediately following the U.S. Supreme Court’s decision in South Dakota V. Wayfair, many states quickly issued “Wayfair” statements. While some states applauded the decision, others affirmed their “economic nexus” rules adopted prior to Wayfair, and others noted they would review their rules in light of the decision and issue additional guidance at a later […]

Sales Tax on Computer Design, Software Modification Services: Massachusetts Issues Initial Guidance, Yet Questions and Challenges Remain

On Wednesday, July 24th Massachusetts enacted H.B. 3535, An Act Relative to Transportation Finance (“the Act”), which was passed by legislative override of Governor Deval Patrick’s veto.  The Act includes several significant tax provisions, such as the adoption of market-based sourcing for receipts from other than tangible personal property sales and an increase in the cigarette tax. But perhaps […]

Sales Tax on Cloud Computing, SaaS and Related Business Solutions: Massachusetts Issues Draft Directive, Provides Criteria for Establishing Taxability

  “Cloud computing”, “Software-as-a-Service”, “business solutions” which include an incidental transfer of software – subject to Massachusetts sales tax, or not? A recently issued Massachusetts Department of Revenue Working Draft Directive establishes criteria for determining whether transactions involving software and related solutions are subject to the Massachusetts sales tax. _______________________________________________ Massachusetts Issues Working Draft Directive 13-XX, […]

Understanding Massachusetts’ Unemployment and Workers’ Compensation Insurance

The following is guest post by Carol Wilson, a blogger/writer who writes on business insurance issues for BusinessInsuranceQuotes, a business insurance connector website.  In this guest post, Carol provides an overview of the Massachusetts Unemployment Insurance and Worker’s Compensation requirements.  Though not technically state taxes, these mandatory contributions, like taxes, are a cost of doing […]

Massachusetts Issues Final Directive on Applying Sales Tax To Third-Party “Deal-of-the-Day” Qualifying Promotional Vouchers

If you’re a frequent visitor to The State and Local Tax “Buzz”, you know that I’ve written several posts on the evolving state tax developments dealing with how states are opting to “tax” Groupon transactions. Specifically, I’ve reported on the administrative guidance that various states have issued, dealing with whether a “deal-of-the-day” certificate or voucher, […]

Massachusetts Issues Final “Groupon – Sales Tax” Guidance: DOR Directive 12-4

Final Administrative Guidance:  Last Monday, July 16, 2012, the Massachusetts Department of Revenue (“the Department”) issued its final directive, 12-4, on the sales tax implications of Groupon type vouchers. (Applause please!) Ordinarily, a Department of Revenue’s issuance of administrative guidance wouldn’t necessarily warrant such fanfare, but in this case it’s only taken the Department ten months, two working […]

Massachusetts’ Internet Sales Tax Legislation; Amazon Tax or SST Adoption? What Proposed Legislation in Massachusetts Will Really Do

Massachusetts Legislative Update:   Will Massachusetts residents soon be paying sales tax on their Amazon purchases?  Should Amazon already be collecting Massachusetts sales tax? If you’ve been following the media reports about how Amazon’s recent “expansion” in Massachusetts gives the company nexus, or how Massachusetts may soon be enacting an “Amazon Law”, then you may think that Amazon […]