Are Cleaning And Administrative Fees Taxable In Massachusetts

Massachusetts sales tax: common and unusual exemptions

We're not in "Taxachusetts" anymore — interesting tax facts about Massachusetts

The Democracy of Massachusetts is perhaps all-time known for its historic landmarks and universities as well as its vacation-friendly seaside villages and local cuisine. It's also home to some of the best hospitals in the globe and several Fortune 500 companies, including Liberty Mutual, Raytheon, Staples, TJX, Dell EMC, and Boston Scientific.

And do we even need to mention the New England Patriots? Many of us here at Avalara headquarters in Seattle are still smarting over the Seahawks' Super Bowl loss to Tom Brady and Co. but a few years ago.

Another thing Massachusetts has long been known for is its taxation climate — and not necessarily in a positive mode. (Unless you think the nickname "Taxachusetts" was coined out of dearest, that is.)

A more than friendly approach

Thanks to several rounds of revenue enhancement reforms, withal, things have shifted: Massachusetts is considered relatively business-friendly. In recent years, Boston has welcomed startup firms and several major companies to the Seaport Commune, including GE.

The state even had a sales tax vacation in 2018 for the starting time time in a couple of years — something that apparently will become an annual tradition for the foreseeable future.

Although Massachusetts still levies a vi.25 percent sales tax on most tangible items, at that place are quite a few exemptions, including food, healthcare items, and more. Beneath are some of the more than interesting ones we've constitute.

• Clothing: Well-nigh items that toll less than $175 are exempt from sales revenue enhancement, including everyday shoes and fifty-fifty shoelaces (items such as athletic cleats and ski boots, nonetheless, are taxable). And for items that cost more than than $175, only the amount in a higher place $175 is taxed. Note that clothing designed primarily to protect from injury, including helmets, are subject to sales tax.

• Personal or professional person services: As in several other states, accounting, legal, and medical services are among those exempt from tax. But car repairs are also, which can be a big savings for consumers.

• Periodicals: No sales tax is charged on newspapers and magazines, which is not all that unusual. Simply comic books? Those are also exempt.

• Costumes: There's no tax on whatever type of costume, including adult and child novelty costumes.

• U.S. flags: Need a new flag to display exterior your domicile or business? That's tax-free — but just if it's a U.S. flag. Y'all'll accept to pay sales tax if you want a unlike one.

Additionally, certain groups such as nonprofit organizations, authorities agencies, and schoolhouse districts also benefit from sales tax exemptions when purchasing or selling specific items.

When do you lot need to charge sales tax?

If you're an ecommerce business concern that doesn't have nexus in Massachusetts, you don't need to collect sales revenue enhancement from Massachusetts customers; rather, information technology's the responsibility of the customer to remit sales taxes for out-of-state purchases. If you practice accept nexus in the Bay State, you're required to register your business and collect sales revenue enhancement on taxable items.

Keep in mind that even if your business is located outside of Massachusetts, you still could have nexus if you sell online to customers there. The land maintains that big net vendors have a physical presence in the state through the software and cookies they place on customers' in-state computers and communication devices to facilitate sales.

At that place's expert news for small sellers, though: The threshold requiring out-of-state online vendors to collect sales tax is pretty significant. Under Massachusetts Department of Acquirement Directive 17-ane, vendors must collect tax if:

• The vendor makes more than than $500,000 in sales to Massachusetts consumers; and

• The vendor makes at to the lowest degree 100 taxable sales transactions for delivery into Massachusetts.

Want to learn more about revenue enhancement obligations in Massachusetts? Our Massachusetts Sales Tax Guide can aid. And when you're ready to explore ways to make the sales tax procedure easier — wherever yous may take nexus — exist certain to cheque out how Avalara solutions support businesses of all sizes.

Sales tax rates, rules, and regulations modify often. Although we hope you'll detect this information helpful, this blog is for informational purposes only and does not provide legal or revenue enhancement communication.

Mike Plaster Avalara Writer

Source: https://www.avalara.com/blog/en/north-america/2018/12/massachusetts-sales-tax-common-and-unusual-exemptions.html

Posted by: masonalfulthe.blogspot.com

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