HOUSE DOCKET, NO. 2872        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2688

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Paul J. Donato

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to the timing of reimbursement for federal manufacturers excise tax.

_______________

PETITION OF:

HOUSE DOCKET, NO. 2872        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2688

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 2869 OF 2015-2016.]

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninetieth General Court
(2017-2018)

_______________

An Act relative to the timing of reimbursement for federal manufacturers excise tax.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1.  Chapter 93 of the Massachusetts General Laws is hereby amended by adding the following section: ?

                § 44.  Timing of Reimbursement for Federal Excise Tax on Petroleum Products ?

(a) When a contract calls for one party to reimburse the other party for the federal manufacturer's excise tax levied by Part III of Subchapter A of Chapter 32 of the United States Internal Revenue Code, whether as a separate item or as part of the price, the party required to make the reimbursement may tender payment for the taxes 1 business day before the time that the other party is required to remit the taxes to the United States Internal Revenue Service. 

(b) If a party elects to exercise the option provided in subsection (a) of this section, the other party may demand security for the payment of the taxes in proportion to the amount such taxes represent compared to the security demanded on the contract as a whole. The other party, however, may not change the other payment terms of the contract without a valid business reason except to require the payment of such taxes under the option to be made by electronic transfer of funds.

(c) The party exercising the option set out in subsection (a) of this section shall notify the other party in writing of the intent to exercise such payment option and the effective date of the exercise which shall be no earlier than 30 days after the notice of intent is received or the beginning of the next federal tax quarter, whichever is later.