Massachusetts – Massachusetts Sued Before New Internet Sales Tax Rules Take Effect

Forbes, #TaxTime
Kelly Phillips Erb
June 12, 2017

“With just over two weeks before a new regulation in Massachusetts was slated to take effect, the measure has hit a roadblock. NetChoice, a trade association of Internet companies and organizations, and American Catalog Mailers Association (“ACMA”), a trade association representing the interests of companies, individuals, and organizations engaged in and supporting catalog marketing, have filed suit to stop the commonwealth from requiring out-of-state online retailers to collect sales taxes.”

“The regulation at issue is Directive 17-1: Requirement that Out-of-State Internet Vendors with Significant Massachusetts Sales Must Collect Sales or Use Tax. The regulation targets out-of-state businesses who solicit customers in the state by redefining (my word) what it means to be “engaged in business in the commonwealth.” Since retailers can easily reach out to consumers over the internet, Massachusetts claims that internet cookies, or data files which are stored on your computer by a web browser, constitute tangible personal property – and constitute presence for purposes of sales tax. This is the case, under the Directive, even if the company making the sales has no other traditional presence.”

For More Information:
Forbes/#TaxTime June 12, 2017
The SALT Report June 8, 2017
The SALT Report 3897