On December 13, 2021, Massachusetts Governor Charlie Baker signed (in part) Bill H.4269 “An Act Relative to Immediate Covid-19 Recovery Needs” into law. This new legislation, in effect, codifies and make permanent the safe harbor rule for advanced payments of sales and use tax, and room occupancy tax that was set to expire January 1, 2022.
The safe harbor rule allows taxpayers to remain complaint (avoiding the 5% penalty) as long as the advance payment made on the 25th of the month equals 80% of the total sales tax liability from the prior month.
Although not yet available, the new law makes clear that additional regulations and guidance will be forthcoming to clarify the modified requirements. For more information on the current Advanced Payment Rules click here.