SALES TAX FOR MASSACHUSETTS

Sales tax for Massachusetts

Sales tax for Massachusetts

Introduction

The year 2009 was a significant year for state taxation issues. As states grappled with unprecedented economic problems, their legislatures and, in some cases, their judicial systems, searched for additional revenue from residents and companies doing business within their jurisdictions. With Congress and the U.S. Supreme Court extending their "hands-off" set about to state taxation, states amplified their efforts to tax companies with negligible nexus, and come to into other states to tax sales made to their residents. Here are some of the best features in Massachusetts (Nair, 2004).

 

Discussion and Analysis

     It boasts a very restricted protected harbor from the imposition of state earnings levies by stopping state earnings taxation of out-of-state companies if their only in-state undertaking is the solicitation of instructions for sales of substantial individual house that are dispatched out-of-doors the state for acceptance or rejection and are topped up from out-of-doors the state.

This protected harbor concerns only to earnings levies (not sales taxes or franchise levies founded on snare worth or capital), defends only the sale of substantial individual house (not leasing, not services, not intangibles and not genuine estate), and boasts no defense if the soliciting workers manage anything other than solicit instructions (make fixes, accept instructions, supply clientele teaching, etc.). This "temporary" assess was conceived to last until Congress addressed the general power of states' taxation rights. Despite numerous failed endeavors to elaborate or restrict its come to, P.L. 86-272 continues intact 50 years subsequent, and is the foremost government statutory restrict to state business earnings taxation.

HR 1083 (introduced Feb. 13, 2009, and still in committee), the "Business Activity Tax Simplification Act of 2009," would elaborate the government prohibition contrary to state taxation of interstate business to:

(1) Encompass inside the defense of P.L. 86-272 all ...