Bill > H3189

This bill establishes a vendors' collection allowance that permits vendors who collect sales tax to retain 2% of the total tax they collect in a calendar year, with a maximum annual retention of $750. The allowance applies to vendors collecting taxes under two specific chapters of Massachusetts law (chapters 64H and 64I, which likely relate to sales and use taxes). Vendors can deduct this 2% during their standard reporting period, but once they reach the $750 annual limit, they cannot continue to deduct any additional amounts until the next calendar year begins. This provision essentially provides a small compensation to vendors for the administrative work of collecting and remitting sales taxes, while also capping the total amount they can retain to prevent excessive deductions. The bill amends existing law by adding these provisions to the end of sections 5 and 6 in the respective chapters, ensuring consistent application across different types of tax collection.

Budget and Finance

https://malegislature.gov/Bills/194/H3189