Massachusetts Proposes Remote Seller Sales Tax Regulation

A few short weeks ago the Massachusetts Department of Revenue enacted and then rescinded Directive 17.1 which was slated to take effect on July 1. The Directive would have imposed a sales tax collection and remittance requirement on remote sellers/internet vendors that provide software (including “cookies”) to Massachusetts customers or use “content distribution networks” located in Massachusetts – assuming that the vendor has $500,000 in MA sales or makes 100+ sales in the Commonwealth.

However, the issue is far from over. A few days ago, Massachusetts announced that they would be holding a hearing on August 24 on Proposed Regulation 830 CMR 64H.1.7. The proposed regulation contains much the same (but not identical) language as the Directive and, if enacted, would appear to enter into effect on October 1, 2017. This proposal follows closely on the heels of a recently enacted statute in Ohio that is slated to take effect on January 18. Stay tuned via this forum on additional developments.


Charles Maniace

Charles Maniace is Vice President – Regulatory Analysis & Design at Sovos. An attorney by trade, Chuck leads a team of attorneys responsible for all the tax and regulatory content that keeps Sovos clients continually compliant. Over his 14 year career in tax and regulatory automation, he has given talks and presentations on a variety of topics including The Taxation of High Tech Transactions, The Taxation of Remote Commerce, The Regulatory Implications of Brexit, The Rise of E-Audits, Form 1042-S Best Practices and Penalty Abatement Practices for Information Returns. Chuck is a member of the Massachusetts Bar and holds a B.S. in Business Economics from Bentley College, a J.D. from Boston University School of Law, and an LL.M in Taxation from Boston University School of Law.
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