Massachusetts – Governor Proposes Tax Increases

SALT Report 1374 – Massachusetts Governor Deval Patrick proposed in his 2013 budget for an increase in the cigarette tax, the imposition of a sales tax on candy and soda sales, and an amendment to the room occupancy tax.

In his budget the governor proposes to:

  • Increase the cigarette tax by .50 cents per pack and raising taxes on cigars and other smokeless tobacco to the same extent as cigarette taxes
  • Eliminate the sales tax exemption on candy and soda sales
  • Amend the room occupancy excise tax to require “room re-sellers” doing business in Massachusetts to register and remit tax on rents received
  • Modernize the apportionment of corporate excise taxes among states by sourcing to where services are received
  • Delay the “FAS 109” deduction from the corporate excise tax for an additional year, and
  • Provide $22 million to enhance Department of Revenue tax enforcement

For Further Information:

Office of Massachusetts Governor Deval Patrick – Budget FY2013