Budget Amendment ID: FY2013-S4-40-R1

Redraft OTH 40

Meals Tax Holiday

Messrs. Tarr, Moore and Knapik moved that the proposed new text be amended by inserting, after section__, the following new section:-

“SECTION__.  Notwithstanding any general or special law to the contrary, for the days of October 7-12, 2012, an excise tax shall not be imposed upon meals purchased in restaurants, as those terms are defined in Section 6 of Chapter 64H of the General Laws, as appearing in the 2010 Official Edition.

Notwithstanding any general or special law to the contrary, for the days of October 7-12, 2012, a restaurant in the commonwealth shall not add to the sales price or collect from a customer an excise upon sales of meals.  The commissioner of revenue shall not require any restaurant to collect and pay excise upon sales of meals purchased on October 7-12, 2012.  An excise erroneously or improperly collected during the days of October 7-12, 2012 shall be remitted to the department of revenue.

Reporting requirements imposed upon restaurants by law or regulation, including, but not limited to, the requirements for filing returns required by chapter 62C of the General Laws, shall remain in effect for sales on the days of October 7-12, 2012.

On or before December 31, 2012, the commissioner of revenue shall certify to the comptroller the amount of sales tax forgone, as well as new revenue raised from person and corporate income taxes and other sources, pursuant to this section.  The commissioner shall file a report with the joint committee on revenue and the house and senate committees on ways and means detailing by fund the amounts under general and special laws governing the distribution of revenues under Chapter 64H of the General Laws which would have been deposited in each fund, without this section.

The commissioner of revenue shall issue instructions or forms, or promulgate rules or regulations, necessary for the implementation of this section.

Eligible sales of meals purchased in restaurants are restricted to October 7-12, 2012.

The provisions of this section shall not be applicable to the local option meals excise tax under Section 1-6 of Chapter 64L of the General Laws, as appearing in the 2010 Official Edition, which shall remain in full force and effect on October 7-12, 2012.”