Massachusetts: Accelerated Sales Tax Remittance Provisions Enacted

Governor Baker has signed the fiscal year 2021 Massachusetts appropriations bill into law. The bill includes provisions requiring certain vendors to make accelerated sales tax payments. Under current law, sales tax payments and returns are generally due the 20^th day of the month after the period ends. Under the revised law,  vendors with sales tax liability of more than $150,000 in the preceding calendar year (and operators with room occupancy tax liability of the same amount) are required to remit taxes collected on any taxable sale made on or before the twenty-first day of the filing period by the twenty-fifth day of that period. In other words, sales taxes related to sales made the first three weeks of the month must be remitted by the 25^th day of the month. The accelerated payment schedule does not apply to those filing sales tax returns as a materialman. A penalty of 5 percent of any underpayment will be assessed, provide that no penalty may be assessed if the amount remitted by the 25^th of the month is at least 70 percent of the amount owed for the entire filing period. The accelerated payment requirement takes effect April 1, 2021. Please contact Ryanne Tannenbaum at 614-988-1729 for more information on this change.