Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2014

Exempt, Taxed Under Another Excise


Fiscal Year 2014 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014
Exempt, Taxed Under Another Excise 972.6 977.2 1,010.8

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item description amount
Exempt, Taxed Under Another Excise 1,010.8
3.201 Exemption for Alcoholic Beverages
Alcoholic beverages, except those sold as part of a meal, were exempt from sales tax through July 31, 2009. Effective August 1, 2009, this exemption was repealed. However, as the result of a referendum question on the November 2, 2010 ballot, this exemption is reinstated, effective for sales on or after January 1, 2011. Alcoholic beverages are also subject to an excise tax determined by volume.

Comment: Revenues collected under the alcoholic beverages excise were $72.7 million in Fiscal Year 2011 and $76.1 million in Fiscal Year 2012.

Origin:  M.G.L. c. 64H S. 6(g)
Estimate:  $116.6
 
116.6
3.202 Exemption for Motor Fuels
Motor fuels are exempt from sales tax. They are subject to an excise at a rate higher than 6.25% of the retail price. The estimate represents revenues that would be collected under the sales tax if motor fuels were taxed at 6.25% of the retail price. The Massachusetts motor fuels tax rate is $0.21 per gallon of gasoline or diesel fuel.

Comment: Revenues collected under the motor fuels excise were
$660.8 million in Fiscal Year 2011 and $662.0 million in Fiscal Year 2012.

Origin:  M.G.L. c. 64H, S. 6(g)
Estimate:  $750.0
 
750.0
3.203 Exemption for Hotel/Motel Rooms
Rental charges for real property are exempt from sales tax. However, rentals of rooms in hotels, motels or lodging houses are subject to a state excise at a rate of 5.7% of the rental price, and, at a municipality's option, to a local excise of up to 6% of the rental price (6.5% in the city of Boston). A Convention Center financing fee of 2.75% is also included in certain areas.

Comment: Revenues collected under the budgeted state room excise were
$110.4 million in Fiscal Year 2011 and $121.6 million in Fiscal Year 2012.

Origin:  General exclusion of real property transactions
Estimate:  $144.1
 
144.1

Key:

ORIGIN  
M.G.L. Massachusetts General Laws
ESTIMATES All estimates are in $ millions.


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