Budget Amendment ID: FY2024-S3-778
OTH 778
Two-Week Sales Tax Holiday
Messrs. Tarr, Fattman and O'Connor moved that the proposed new text be amended by inserting after section __ the following sections:-
"SECTION _. Notwithstanding any general or special law to the contrary, for the days of August 8, 2023 to August 21, 2023, an excise shall not be imposed upon nonbusiness sales at retail of tangible personal property, as defined in section 1 of chapter 64H of the General Laws. For the purposes of this act, tangible personal property shall not include telecommunications services, tobacco products subject to the excise imposed by chapter 64C of the General Laws, marijuana or marijuana products subject to chapter 94G of the General Laws, alcoholic beverages, as defined in section 1 of chapter 138 of the General Laws, gas, steam, electricity, motor vehicles, motorboats, meals or a single item the price of which is in excess of $2,500.
SECTION _. Notwithstanding any general or special law to the contrary, for the days of August 8, 2023, to August 21, 2023, a vendor shall not add to the sales price or collect from a nonbusiness purchaser an excise upon sales at retail of tangible personal property. The commissioner of revenue shall not require a vendor to collect and pay excise upon sales at retail of tangible personal property purchased on August 8, 2023, through August 21, 2023, including on August, 21, 2023. An excise erroneously or improperly collected during the days of August 8, 2023 to August 21,2023, shall be remitted to the department of revenue.
SECTION _. Notwithstanding the provisions of section 6A of chapter 64H of the General Laws, the sales tax holiday for 2023 designated pursuant to subsection (b) of said section 6A shall run concurrently with the dates set forth in sections 1 and 2 and shall not be interpreted as being in addition to any such dates.
SECTION _. Reporting requirements imposed upon vendors of tangible personal property, by law or by 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 for the days of August 8, 2023 to August 21, 2023.
SECTION _. (a) On or before August 15, 2023, the commissioner of revenue shall certify the amount of sales tax receipts estimated to be foregone as a result of the provisions of sections 1 and 2, based on the likely volume of sales tax collections in the absence of this act. In this certification, the commissioner shall specify distinctly the amounts of tax receipts that would have been credited or otherwise assigned to non-budgeted funds for transfer of sales tax revenue dedicated to the Massachusetts Bay Transportation Authority pursuant to section 35T of chapter 10 of the General Laws and the Massachusetts School Building Authority pursuant to section 35BB of said chapter 10. Additionally, in this certification, the commissioner shall specify distinctly the amounts of tax receipts that would have been pledged to the expenses of the various convention centers.
(b) In calculating the consolidated net surplus for fiscal year 2023 pursuant to section 5C of chapter 29 of the General Laws and any relevant special acts, the comptroller shall exclude from the consolidated net surplus an amount equal to the total amount of sales tax receipts foregone as a result of the provisions of sections 1 and 2, as certified by the commissioner of revenue. That amount shall be treated as a reserved balance in the General Fund at the close of fiscal year 2023.
(c) In fiscal year 2024, the comptroller shall transfer from the General Fund to the Massachusetts Bay Transportation Authority State and Local Contribution Fund established in section 35T of chapter 10 of the General Laws, the School Modernization and Reconstruction Trust Fund established in section 35BB of said chapter 10, and funds for the various convention centers established in chapter 152 of the acts of 1997 as amended, chapter 45 of the acts of 2001 and chapter 422 of the acts of 2006 as amended, the specified portions of the sales tax receipts foregone as a result of the provisions of sections 1 and 2, as certified by the commissioner of revenue pursuant to subsection (a) of this section. Transfers pursuant to this subsection shall be in amounts and on a schedule that approximates the allocation of funds that would have occurred in the absence of this act. For purposes of calculating amounts due under sections 35T and 35BB of chapter 10 of the General Laws, chapter 152 of the acts of 1997 as amended, chapter 45 of the acts of 2001, chapter 422 of the acts of 2006 as amended, and any other general or special act, funds transferred pursuant to this section shall be treated as sales tax receipts.
SECTION _. On or before December 31, 2023, the commissioner of revenue shall certify to the comptroller the amount of sales tax forgone pursuant to this act, as well as new revenue raised from personal and corporate income taxes and other sources; provided, that the amounts transferred pursuant to subsection (c) of section 5 shall be final notwithstanding any variance from the amounts certified 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, for each fund affected, the amounts that were deposited into each fund pursuant to this act.
SECTION _. The commissioner of revenue shall issue instructions or forms or promulgate rules or regulations necessary for the implementation of this act.
SECTION _. Eligible sales at retail of tangible personal property under sections 1 and 2 are restricted to those transactions occurring on days between and including August 8, 2023, and August 21, 2023. Transfer of possession of or payment in full for the property shall occur on 1 of those days. Transactions where a deposit, prepayment or binding promise to pay is made before August 8, 2022, prior sales, and layaway sales shall be ineligible.”