Massachusetts – Governor’s Budget will Eliminate Sales Tax Exemptions

1/24/2013

SALT Report 2076 – Massachusetts Governor Deval Patrick released his $34.8 billion dollar state budget for fiscal year 2014. In his announcement, the Governor said that he plans to decrease the sales tax rate and impose sales and use tax on previously exempt items.

Specifically, the Governor’s budget addresses the following sales tax changes:

  • The sales tax rate would be decreased to 4.5% from the current rate of 6.25%,
  • Candy and soft drinks, will be subject to sales tax, and
  • Computer and data processing services and custom software will be subject to sales tax

The Governor also addresses the state’s deal with Amazon in which Amazon has agreed to collect sales tax on goods sold in Massachusetts beginning November 1, 2013. The Governor projects that the state will receive nearly $26 million dollars in additional sales tax revenues from this agreement.

For Further Information

Office of the Massachusetts Governor – Budget FY 2014