Tax Expenditure Appendix D

Fiscal Year 2014 Tax Expenditure Budget – Appendix D

Non-TEB Items


In July 2012 legislation was enacted stating explicitly that "sales that do not involve tangible personal property shall not result in tax expenditures". See St 2012, c.165, s.112. Pursuant to this legislation, from fiscal year 2014 on, we remove some items from our tax expenditure estimates, which we regularly reported in prior years. But to facilitate comparison to tax expenditure estimates in prior years, we list these items in this appendix.


Items:
3.422 - Exemption for Telephone Services
  Sales of residential telecommunications services of up to $30 per month are exempt from sales tax.
  Origin: M.G.L. c. 64H, s. 6(i)
  Estimate: $41.6
  Comment: Telegraph services are also exempt, but are not included in this estimate.
3.501 - Nontaxation of Transfers of Real Property
  Real estate is exempt from sales tax but is subject to a deeds excise at a rate of 0.456% of the taxable price of the property (0.342% in Barnstable County). The estimate represents revenues that would be collected under the sales tax if sales of real property were taxed at 6.25%.
  Origin: General exclusion of real property transactions
  Estimate: $2,624.0
  Comment: Revenues collected under the Deeds Excise Tax (including Secretary State Deeds) were $140.2 million in Fiscal Year 201 and $158.8 million in Fiscal Year 2012.
3.502 - Nontaxation of Rentals of Real Property
  Rental charges for real property, whether for residential or business purposes, are exempt from sales tax.
  Origin: General exclusion of real property transactions
  Estimate: $1,712.0
  Comment: This estimate excludes rentals of hotel/motel rooms, which are separately stated under item 3.203.
3.503 - Nontaxation of Certain Services
  Certain services are not subject to sales tax. This estimate includes a range of services to individuals and businesses which are excluded from taxation by their omission from the statutory definition of services.
  Origin: M.G.L. c. 64H s. 1
  Estimate: $9,807.8
3.504 - Nontaxation of Internet Access and Related Services
  Internet access services, electronic mail services, electronic bulletin board services, web hosting services or similar on-line computer services are not subject to the sales and use tax.
  Origin: M.G.L. c. 64H s. 1
  Estimate: $164.6

 

Summary:
Description of Item Former TEB number FY12 FY13 FY14
Exemption for Telephone Services 3.422 40.8 41.2 41.6
Exempt Not Taxable as Tangible Personal Property 3.500 13,156.8 13,810.4 14,308.4
Nontaxation of Transfers of Real Property 3.501 2,215.4 2,532.3 2,624.0
Nontaxation of Rentals of Real Property 3.502 1,622.6 1,667.8 1,712.0
Nontaxation of Certain Services 3.503 9,169.3 9,451.1 9,807.8
Nontaxation of Internet Access and Related Services 3.504 149.5 159.2 164.6