Chapter 64H section 1 of the Massachusetts General noncollecting vendor making sales into Massachusetts shall notify Massachusetts purchasers that sales or use tax is due on nonexempt purchases  Laws is amended by adding the following definition: 

(XX) “Noncollecting vendor” means a vendor that sells tangible personal property or services to purchasers who are not exempt from the sales tax under this chapter, but that does not collect the Massachusetts sales tax.

Chapter 64 H is hereby amended by adding the following new section;

(XXX) NOTICE REQUIREMENTS FOR NONCOLLECTING VENDORS

(a) Each made from the noncollecting vendor and that the State of Massachusetts requires the purchaser to pay the tax due on his or her tax return. Failure to provide the notice required by this subsection shall subject the noncollecting vendor to a penalty of $50.00 for each such failure, unless the noncollecting vendor shows reasonable cause for such failure. 

(b) Each noncollecting vendor shall send notification to all Massachusetts purchasers on or before January 31 of each year showing the total amount paid by the purchaser for Massachusetts purchases made from the noncollecting vendor in the previous calendar year. The notice requirement in this subsection only applies to Massachusetts purchasers who have made $150.00 or more of purchases from the noncollecting vendor in the previous calendar year. The notice shall include any information required by the Commissioner by rule. The notification shall state that the Commonwealth of Massachusetts requires a sales or use tax return to be filed and sales or use tax paid on nonexempt purchases made by the purchaser from the noncollecting vendor. The notification required by this subsection shall be sent separately to all Massachusetts purchasers by first-class mail or electronic mail and shall not be included with any other shipments. The notification shall include the words “Important Tax Document Enclosed” on the exterior of the mailing. The notification shall include the name of the noncollecting vendor. Failure to send the notification required by this subsection shall subject the noncollecting vendor to a penalty of $50.00 for each such failure, unless the noncollecting vendor shows reasonable cause for such failure.

(c) Each noncollecting vendor shall send notification to the Department on or before January 31 of each year showing the total amount of sales or use tax that is owed by Massachusetts consumers who made from the noncollecting vendor in the previous calendar year.  Failure to send the notification required by this subsection shall subject the noncollecting vendor to a penalty of $500,000, unless the noncollecting vendor shows reasonable cause for such failure.

(d) The Commissioner is authorized to adopt rules or procedures, or to create forms, necessary to implement this section. Penalties imposed under this section shall be subject to the same administrative and appeal provisions established in this chapter.