Since August 1, 2009, the MA sales tax is 6.25 percent of the sales price or rental charge of tangible personal property or selected telecommunications services sold or rented in the Commonwealth.
The sales tax usually is paid out to the vendor as an addition to the purchase price. The buyer pays the sales tax to the seller at the moment of purchase; the vendor then remits the tax to the Commonwealth. For automobile and trailer sales, however, the sales tax is paid directly to the Commonwealth by the purchaser.
Starting August 1, 2009, the MA use tax is 6.25 percent of the sales price or rental charge on tangible personal property 1 (including mail order goods or goods bought over the Internet) or particular telecommunications services on which no sales tax, or a sales tax rate less than the 6.25 percent MA rate, was paid and which is to be used, stored or consumed in the commonwealth. The use tax, unlike the sales tax, typically is paid straight to the state by the purchaser.
Example of this: You purchase furnishings for your MA organization or residence from an out-of-state firm and pay no MA or other state sales tax. You are mandated to pay the 6.25 percent Massachusetts use tax. The use tax applies due to the fact the items were not subjected to a sales tax in the other state and because it is for use in the state.
Tangible personal property involves electronically transferred software.Telecommunications services include telephone and other transmissions of data (such as beeper services, cellular telephone services and telegram services). Cable television and Internet access are exempt from the sales tax. Typically, the tax on the sale or use of telecommunications services is a tax on the transmission of messages or information by various electronic means, but not on the sale or use of data itself.
The sales tax usually is paid out to the vendor as an addition to the purchase price. The buyer pays the sales tax to the seller at the moment of purchase; the vendor then remits the tax to the Commonwealth. For automobile and trailer sales, however, the sales tax is paid directly to the Commonwealth by the purchaser.
Starting August 1, 2009, the MA use tax is 6.25 percent of the sales price or rental charge on tangible personal property 1 (including mail order goods or goods bought over the Internet) or particular telecommunications services on which no sales tax, or a sales tax rate less than the 6.25 percent MA rate, was paid and which is to be used, stored or consumed in the commonwealth. The use tax, unlike the sales tax, typically is paid straight to the state by the purchaser.
Example of this: You purchase furnishings for your MA organization or residence from an out-of-state firm and pay no MA or other state sales tax. You are mandated to pay the 6.25 percent Massachusetts use tax. The use tax applies due to the fact the items were not subjected to a sales tax in the other state and because it is for use in the state.
Tangible personal property involves electronically transferred software.Telecommunications services include telephone and other transmissions of data (such as beeper services, cellular telephone services and telegram services). Cable television and Internet access are exempt from the sales tax. Typically, the tax on the sale or use of telecommunications services is a tax on the transmission of messages or information by various electronic means, but not on the sale or use of data itself.
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