Tag Archive for Massachusetts

Economic Nexus Versus Cookie Nexus: What You Need To Know

Monika Miles - Economic Nexus Versus Cookie Nexus

Although the precedent for economic nexus was set in June 2018, states were attempting to come up with ways to collect and remit sales tax from online transactions long before the Wayfair case made it to the courts.

Massachusetts and Ohio, for example, decided to define the computer code from internet cookies as a tangible item that could establish a physical presence nexus. However, once Wayfair passed, was this “cookie nexus” still in effect? The answer is, “Yes.” However, as always, regulations are still more complicated and confusing.

Massachusetts’ Cookie And Economic Nexus Rules

As Avalara explains:

  • Massachusetts’ economic nexus provisions require remote sellers to collect and remit state sales tax if the sales are greater than $100,000 in the current or previous calendar year. However, if you make sales of less than $100,000 into the state, you fall under a small seller exception and don’t need to worry about sales tax.
  • The cookie nexus required companies with more than $500,000 in internet sales and more than 100 transactions to collect and remit sales tax, if the company placed “cookie” onto the computers of MA customers. If your business falls under these thresholds, the provisions don’t apply to you.

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Written by | Posted in Cookie Nexus • Wayfair Case

Maine, Maryland And Massachusetts State Sales And Use Tax

Aaron Giles States Sales And Use Tax- Maryland, Maine, Massachusetts

Maine State Sales And Use Tax

The state of Maine increased its state sales tax rate to 5.5% on Oct. 1, 2013. Taxes are levied on the retail sale, lease or rental of most goods. There are no local sales taxes in the state of Maine.

Use tax is due on all purchases brought into the state of Maine, unless specifically exempted. Use tax is due at the same rates as sales tax. Returns are to be filed on or before the 15th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Maine on or before February 15th.

For more information on Maine sales tax exemptions please visit the sites shown below.

Maine State Department of Revenue
Maine State Sales Tax Forms
Maine State Voluntary Disclosure Program

Maryland State Sales And Use Tax

The state of Maryland levies a 6% state sales tax rate on the retail sale, lease or rental of most goods. There are no local sales taxes in the state of Maryland.

Use tax is due on all purchases brought into the state of Maryland, unless specifically exempted. Use tax is due at the same rate as sales tax. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Maryland on or before February 20th.

For more information on Maryland sales tax exemptions please visit the sites shown below.

Maryland State Comptroller
Maryland Sales And Use Tax Forms
Maryland State Business Tax Credits

Massachusetts State Sales And Use Tax

The state of Massachusetts levies a 6.25% state sales tax on the retail sale, lease or rental of most goods and some services. There are no local sales taxes in the state of Massachusetts.

Use tax is also collected on the consumption, use or storage of goods in Massachusetts if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Massachusetts on or before February 20th.

For more information on Massachusetts sales tax exemptions please visit the sites shown below.

Massachusetts State Sales And Use Tax Guide

(This is part of the 50 States Sales And Use Tax Series)

Have a question? Contact Aaron Giles

 

Written by | Posted in Maine • Maryland • Massachusetts • Sales/Use Tax

Massachusetts Online Sales Tax Update

A couple of weeks ago we summarized Massachusetts’ Directive 17-1, a new piece of online sales tax legislation that redefined physical presence to include downloaded apps and internet ‘cookies’ – the data websites store on users’ computers and phones to track visits. While Directive 17-2, which repealed the prior directive, was announced at the end of June, the original law redefining physical presence (or nexus) was so distinctive that we wanted to take a closer look at the rule. Read More

Written by | Posted in State Tax

Are You Really Covered By Your Policies?

One of the primary objections I hear from insurance agents about captives is that commercial policies are comprehensive.  But, the devil is really in the details here — or, more specifically, in the legal precedent interpreting the policies.

For example, how comprehensive is a duty to defend?  On the surface, the wording looks pretty iron clad.  But there’s a big split among the states as to what duties this actually encompasses: Read More

Written by | Posted in Captives

Massachusetts And Online State Tax: What You Need To Know

Over the last couple of months we’ve been taking a closer look at how various states are approaching the issue of online sales tax. Some states, like Washington and Nevada, have enacted “Amazon Laws” that make some retailers responsible for collecting and remitting state sales tax. Other states, such as Arizona, haven’t created new legislation directly about the issue yet and seem to be waiting to see how the debate is settled, either in Congress or through other states’ laws. Read More

Written by | Posted in State Tax

Marijuana Taxes And Revenue For The States

There were numerous tax initiatives on ballots across the United States this year. One of the major tax initiatives was the legalization of marijuana and its subsequent taxing in eight states during the 2016 November election. Prior to the November elections, there were 26 states and the District of Columbia who legalized the use of marijuana, whether in the form of recreational use or medical use only. Now,California, Massachusetts, Nevada and Maine have all voted to allow the use of recreational marijuana. (As of now, the margin of victory in Maine is less than 1.5%, which means there will be a recount that does not affect the taxpayers.)

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Written by | Posted in 2016 Tax update • State Tax • United States

Massachusetts Governor Announces Fiscal Year 2015 Budget Proposal

On January 22, 2014, Massachusetts Governor Deval Patrick announced his budget for fiscal year 2015. While much of the budget is focused on investments in infrastructure and education, those in the tax community will be particularly interested in the proposition to close tax loopholes the Governor has attempted to close in past years. Included among these loopholes, according to the summary, is a proposition to impose tax on the markup that online travel companies receive. Similarly, the budget proposes to apply the room occupancy tax on new forms of transient rental, such as apartments, condos, and homes. The budget seeks to close another loophole by applying the corporate tax rate to pass-through entities owned by insurance companies and security corporations.

The budget summary anticipates that closing these loopholes will raise $40 million but Read More

Written by | Posted in Tax Provision/Tax Reporting • United States