Massachusetts Proposes Remote Seller Sales Tax Regulation

Charles Maniace
August 1, 2017

A few short weeks ago the Massachusetts Department of Revenue enacted and then rescinded Directive 17.1 which was slated to take effect on July 1.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.

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Charles Maniace

Chuck is Vice President –Regulatory Analysis & Design at Sovos, a global provider of software that safeguards businesses from the burden and risk of modern tax. An attorney by trade, he leads a team of attorneys and tax professionals that provide the tax and regulatory content that keeps Sovos customers continually compliant. Over his 20-year career in tax and regulatory automation, he has provided analysis to the Wall Street Journal, NBC, Bloomberg and more. Chuck has also been named to the Accounting Today list of Top 100 Most Influential People four times.
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