August 18, 1981

You inquire about the Massachusetts sales and use tax collection and payment responsibilities of ********** ("Seller"), on mail-order sales of items mailed from its New Jersey offices to purchasers in Massachusetts. The Seller operates at least two retail stores in Massachusetts.

Massachusetts General Laws Chapter 64H, Section 2 imposes an excise on sales at retail of tangible personal property in Massachusetts by any vendor. A sale of tangible personal property takes place in Massachusetts if title to or possession of the property is transferred in Massachusetts (G.L. c. 64H, s. 1(12)(a)).

Chapter 64I, Section 2 of the General Laws imposes an excise on the storage, use or other consumption in Massachusetts of tangible personal property purchased for storage, use or other consumption in Massachusetts.

Under Chapter 64H, Sections 2 and 3, and Chapter 64I, Sections 2 and 4, every vendor engaged in business in Massachusetts must collect from the purchaser and pay over to the Commissioner sales and use taxes on his sales of tangible personal property in Massachusetts and his sales of such property outside Massachusetts for storage, use or other consumption in Massachusetts. "Engaged in business in Massachusetts" is defined as including "having a business location in the commonwealth," and a person is considered to have a business location in Massachusetts if, inter alia, he owns or leases real property in Massachusetts, has one or more employees located in Massachusetts, or regularly maintains a stock of tangible personal property in Massachusetts for sale in the ordinary course of business (G.L. c. 64H, s. 1(5); c. 64I, s. 1(1)).

Based on the foregoing, the Seller must collect and pay over Massachusetts sales and use taxes on its mail-order sales of items mailed from its New Jersey offices to purchasers in Massachusetts.

Very truly yours,

/s/L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

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LR 81-80