Massachusetts – Proposed Exemption for Fuel

SALT Report 2764 – The Massachusetts General Assembly introduced legislation that, if enacted would provide a sales tax exemption for fuel used in on-site drilling operations.  The language of the bill follows:

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Paragraph (j) of section 6 of chapter 64H of the General Laws is hereby amended by striking out the words “and (3) fuel used in the operation of aircraft or used in the operation of railroads” and inserting in place the following words:

(3) fuel used in the operation of aircraft or used in the operation of railroads, and

(4) fuel used in on-site drilling operations; provided, however that such fuel may be taxed at a rate of no greater than 3%.

On June 26, 2013, the bill was referred to the committee on Joint Rules and to the committee on Revenue.

For Further Information

Massachusetts General Assembly – House Bill 3536