Bill > S1453

This bill aims to improve tax fairness by introducing several changes, including subjecting certain non-insurance trade or business income of insurance companies to taxation in Massachusetts, similar to how business corporations are taxed, and clarifying that this applies when an insurance company owns a significant stake (50% or more) in an entity conducting such businesses. It also revises excise taxes on cigars and smoking tobacco, increasing the rates on specific types of cigars and smoking tobacco to 80% and 90% of their wholesale price, respectively, and adjusting the excise tax on smokeless tobacco to 45% of the purchase price. Furthermore, the bill imposes an additional tax on real estate transactions where the sale price exceeds one million dollars, at a rate of five dollars for every five hundred dollars above that threshold, with certain exemptions for debt security instruments and government entities. The bill also expands the definition of "doing business in the commonwealth" to encompass various activities related to accommodations, including those facilitated by "room resellers," who are defined as entities that arrange for the transfer of occupancy of accommodations and receive payment from the occupant. This expanded definition aims to ensure that businesses operating in the accommodations sector, even indirectly, are subject to Massachusetts taxes. Additionally, the bill clarifies the collection and payment of excise taxes on room occupancy, ensuring that both operators and room resellers are responsible for collecting and remitting these taxes, and it introduces new provisions for the taxation of aircraft sales and use, with revenue directed to a small business technical assistance program.