Massachusetts DOR Update - March 26, 2020
Sales and Use Tax, Room Occupancy Excise Suspension
The MA DOR has adopted emergency regulation that suspends sales and use tax and room occupancy excise tax return filing and payment remittance obligations for certain vendors and operators during the COVID-19 state of emergency. Late-file or late-pay penalties will be waived for vendors or operators who do not qualify.
Sales and Use Taxes
For vendors, whose cumulative liability in the 12-month period ending February 29, 2020 is less than $150,000, the sales and use tax filing and payment schedule will be as follows:
Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, shall be suspended.
All such returns and payments shall be due on June 20, 2020.
This suspension does not apply to marijuana retailers, marketplace facilitators or vendors selling motor vehicles. Such vendors shall continue to file returns and make payments.
Room Occupancy Excise Tax
For operators, whose cumulative liability in the 12-month period ending February 29, 2020 is less than $150,000, the filing and payment schedule will be as follows:
Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, will be suspended.
All such returns and payments, including any local option amount will be due on June 20, 2020.
The suspension does not apply to intermediaries that must continue to file returns and make payments.
Penalty Waiver
The MA DOR will waive any late-file or late-pay penalties imposed for returns and payments due during the period March 20, 2020 through May 31, 2020, for the following:
Vendors with meals tax return and payment obligations that do not otherwise qualify for relief.
Operators and intermediaries with room occupancy excise return and payment obligations that do not otherwise qualify for relief.
Only penalties are being waived; statutory interest will continue to accrue. To be eligible for a penalty waiver, vendors, operators and intermediaries must file their returns and remit payments on or before June 20, 2020. The penalty waiver is limited to the taxpayers and tax periods outlined above.
Applications for waiver of penalties for sales tax other than sales tax on meals, or other circumstances not covered above, will be handled on a case-by-case basis based on reasonable cause.
The MA DOR has adopted emergency regulation that suspends sales and use tax and room occupancy excise tax return filing and payment remittance obligations for certain vendors and operators during the COVID-19 state of emergency. Late-file or late-pay penalties will be waived for vendors or operators who do not qualify.
Sales and Use Taxes
For vendors, whose cumulative liability in the 12-month period ending February 29, 2020 is less than $150,000, the sales and use tax filing and payment schedule will be as follows:
Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, shall be suspended.
All such returns and payments shall be due on June 20, 2020.
This suspension does not apply to marijuana retailers, marketplace facilitators or vendors selling motor vehicles. Such vendors shall continue to file returns and make payments.
Room Occupancy Excise Tax
For operators, whose cumulative liability in the 12-month period ending February 29, 2020 is less than $150,000, the filing and payment schedule will be as follows:
Returns and payments due during the period beginning March 20, 2020 and ending May 31, 2020, inclusive, will be suspended.
All such returns and payments, including any local option amount will be due on June 20, 2020.
The suspension does not apply to intermediaries that must continue to file returns and make payments.
Penalty Waiver
The MA DOR will waive any late-file or late-pay penalties imposed for returns and payments due during the period March 20, 2020 through May 31, 2020, for the following:
Vendors with meals tax return and payment obligations that do not otherwise qualify for relief.
Operators and intermediaries with room occupancy excise return and payment obligations that do not otherwise qualify for relief.
Only penalties are being waived; statutory interest will continue to accrue. To be eligible for a penalty waiver, vendors, operators and intermediaries must file their returns and remit payments on or before June 20, 2020. The penalty waiver is limited to the taxpayers and tax periods outlined above.
Applications for waiver of penalties for sales tax other than sales tax on meals, or other circumstances not covered above, will be handled on a case-by-case basis based on reasonable cause.