Bill > H2869

This bill proposes to amend Massachusetts General Laws Chapter 93 by adding a new section that clarifies the timing of reimbursements for the federal manufacturer's excise tax on petroleum products. Specifically, if a contract requires one party to reimburse another for this federal tax, the party responsible for reimbursement can now pay the tax one business day before the other party is obligated to send it to the U.S. Internal Revenue Service. This federal tax is levied under Part III of Subchapter A of Chapter 32 of the U.S. Internal Revenue Code. If this early payment option is used, the party receiving the reimbursement can request security for the tax payment, proportional to the tax amount relative to the overall contract security, but they cannot alter other contract payment terms without a valid business reason, except to require the tax payment to be made via electronic transfer. The party choosing this early payment option must provide written notice to the other party at least 30 days in advance or by the start of the next federal tax quarter, whichever is later.