Massachusetts Governor Eyeing Real-Time Sales Tax Collection

On January 24th, 2018, Massachusetts Governor Charlie Baker released his fiscal 2019 budget plan. Included in the budget is a proposal for real-time sales tax remittance from credit card companies and other third-party payment processors, requiring them to remit to the Commonwealth, on a daily basis, the portion of a sale that is attributable to sales tax. Last year, Baker included a similar proposal in his fiscal 2018 budget plan. However, a Department of Revenue study found that developing and implementing a real-time sales tax remittance system in Massachusetts would not be feasible in the immediate future. Thus, Baker has followed up on his proposal and if it is approved, it would require the state revenue commissioner to promulgate regulations by May 31, 2021. 

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Author

Brendan Magauran

Brendan Magauran is a Junior Regulatory Counsel at Sovos Compliance specializing in international taxation, with a focus on Value Added Tax Systems in the European Union. Brendan received his B.A. and J.D. from Washington University in St. Louis and is licensed to practice in New Hampshire and Massachusetts.
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