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
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