830 CMR: DEPARTMENT OF REVENUE
830 CMR 62C.00: STATE TAX ADMINISTRATION
830 CMR 62C.00 is amended by adding the following section:
830 CMR 62C.67.1: Display of Certificates of Registration

(1) General. M.G.L. c. 62C, § 67 states that certificates of registration issued by the Commissioner of Revenue must be displayed conspicuously by the holder thereof. A certificate of registration issued to a vendor or an operator by the Commissioner of Revenue must be displayed in the manner specified in 830 CMR 62C.67.1.

(2) Definitions. As used in 830 CMR 62C.67.1, the following words shall have the following meanings:

Certificate of registration, registration, certificate, the document evidencing the registration required by M.G.L. c. 64G, § 6; M.G.L. c. 64H, § 7; and M.G.L. c. 64I, § 9, and issued by the Commissioner in accordance with M.G.L. c. 62C, § 67.

Commissioner, the Commissioner of Revenue.

Customer relations counter, includes but is not limited to, a counter where a customer or an occupant may pay bills from credit charges, submit complaints or have personal checks approved.

Displayed conspicuously, conspicuously displayed, posted or otherwise dis­played in a prominent place at the vendor's or the operator's place of business so that the vendor's customers or the operator's occupants are able to see and read it.

Operator, any person operating a hotel, motel, or lodging house in the Commonwealth, including, but not limited to, the owner or proprietor of such premises, lessee, sublessee, mortgagee in possession, licensee or any other person otherwise operating such hotel, motel, or lodging house. See M.G.L. c. 64G, § 1(d).

Vendor, a retailer or other person selling tangible personal property of a kind the gross receipts from the retail sale of which are required to be included in the measure of the tax imposed by M.G.L. c. 64H or 64I. See M.G.L. c. 64H, § 1(18); M.G.L. c. 64I, § 1.

(3) Proper Display. Every vendor and every operator must obtain a certificate of registration from the Commissioner for each place of business. Each certificate of registration must be displayed conspicuously by the vendor or the operator at the place of business for which the certificate is obtained. Each certificate must be posted or otherwise displayed in the following manner.

(a) Place of business-no cash register. If a place of business for which a certificate of registration is obtained does not have a cash register, the certificate of registration must be conspicuously displayed at the customer relations counter; and if the place of business does not have a customer relations counter, the certificate of registration must be conspicuously displayed at the business entrance which is used by most of the vendor's customers or the operator's occupants, so that the customers or the occupants are able to see and read the certificate upon entering the place of business.

(b) Place of business - single cash register.

1. If a place of business for which a certificate of registration is obtained has a single cash register and the cash register is visible to the vendor's customers or the operator's occupants and the customers or the occupants typically approach the cash register, the certificate of registration must be attached to the cash register so that the vendor's customers or the operator's occupants are able to see and read the certificate or otherwise conspicuously displayed in the vicinity of the cash register.

2. If the single cash register is not visible to the vendor's customers or the operator's occupants or if the customers or the occupants do not typically approach the cash register (as, for example, when the customer typically pays a waitress/waiter; or when an operator does not have a cash register at the front desk), the certificate of registration must be conspicuously displayed at the business entrance which is used by most of the vendor's customers or the operator's occupants so that the vendor's customers or the operator's occupants are able to see and read the certificate upon entering the place of business.

(c) Place of Business - multiple cash registers.

1. If a place of business for which a certificate of registration is obtained has more than one cash register, the certificate of registration may not be attached to any cash register but must be conspicuously displayed at the customer relations counter.

2. If a place of business with more than one cash register does not have a customer relations counter, the certificate of registration must be conspicuously displayed at the business entrance which is used by most of the vendor's customers or the operator's occupants so that the vendor's customers or the operator's occupants are able to see and read the certificate upon entering the place of business.

(d) Place of Business - Non-Public. A certificate of registration obtained for a place of business which is non-public must be kept on file at the place of business so that the vendor's customers are able to see and read it upon request; and a copy of the certificate must be kept on file at the vendor's tax department or other office where the vendor's tax records are kept. A non-public place of business includes but is not limited to a non-public business office from which sales subject to the sales tax are made but which customers typically do not enter (for example, a corporate sales department).

Example: Ellipso Corporation sells computer equipment at three retail outlets in Massachusetts. Ellipso must obtain for each of these places of business a certificate which must be displayed conspicuously as required by this regulation, 830 CMR 62C.67.1. Sales to large suppliers are often negotiated over the telephone by the sales department at Ellipso's main office rather than at a retail store, Ellipso must obtain a certificate of registration for the main office since it serves as a place of business. The certificate must be kept on file at the sales department office so that the vendor's customers are able to see and read it upon request and a copy must be kept on file at Ellipso's tax department office or other office where the vendor's tax records are kept.

(e) Vending Machines. Generally, a vendor who operates vending machines is required to obtain only one certificate of registration for each place of business from which it operates vending machines regardless of the number of vending machines operated at the place of business. However, if a vendor operates a vending machine or machines which require a sales and use tax certificate of registration and a vending machine or machines which require a meals and all beverages sales tax certificate of registration at the same place of business one of each type of certificate of registration will be required for the place of business.

1. If a vendor operates only one vending machine per type of certificate of registration at a place of business the certificate of registration must be attached to the vending machine for which it was obtained so that the vending machine customers are able to see and read the certificate.

2. If a vendor operates more than one vending machine at a place of business under a single certificate of registration, the certificate must not be attached to any vending machine but must be conspicuously displayed at the business entrance used by most of the vending machine vendor's customers so that the vending machine vendor's customers are able to see and read the certificate upon entering the place of business. This rule does not apply to vending machine operators within the meaning of M.G.L. c. 64C.

(f) Carts, stands, trucks and other merchandising devices. A vendor who does business from a cart, stand, truck or other merchandising device must attach his certificate of registration to such cart, stand, truck or other merchandising device in a prominent place so that the vendor's customers are able to see and read the certificate.

(g) Sales and/or Use Tax Vendor Out-of-State. A Massachusetts certificate of registration issued to an out-of-state vendor who is without a place of business in Massachusetts, must be kept on file at the vendor's place of business where Massachusetts orders are customarily taken, or if no such office exists, at the vendor's main place of business so that the vendor's customers are able to see and read the certificate upon request. A copy of the certificate must be kept on file at the vendor's tax department office or other office where the vendor's tax records are kept.

(4) Improper Display. A certificate of registration located so that the vendor's customers or the operator's occupants cannot see and read it, is not properly displayed except that this rule does not apply to certificates maintained pursuant to 830 CMR 62C.67.1(3)(d) or (g). For example, a certificate of registration located in a vendor's or an operator's private office is not properly displayed unless the certificate is maintained pursuant to 830 CMR 62C.67.1(3)(d) or (g); a certificate of registration located high on a wall so that customers or occupants cannot read it is not properly displayed.

(5) Failure to Display Properly Certificates of Registration. If the Commissioner determines that a certificate of registration is not displayed conspicuously at a place of business or by a vendor or an operator the Commissioner may suspend or revoke the vendor's or the operator's registration. The Commissioner will notify the vendor or the operator in writing, at his place of business as shown on the records of the Commissioner, of the Commissioner's decision to revoke or suspend the vendor's or the operator's certificate of registration. See M.G.L. c. 62C, § 68. Any person aggrieved by suspension or revocation of registration may appeal therefrom to the Appellate Tax Board and may petition the Board for a stay of the suspension or revocation pending a hearing on the merits. See M.G.L. c. 62C, § 68.

(6) Penalties. The following are in addition to any other penalties established by law.

(a) A vendor or an operator whose registration has been suspended or revoked under this regulation must pay to the Commissioner a fee of twenty dollars for the reissuance of a registration. The Commissioner will not issue a new registration after suspension or revocation of a registration unless he is satisfied that the former registration holder will comply with this regulation, 830 CMR 62C.67.1, M.G.L. c. 62C, § 68;

(b) A vendor or an operator who conducts business in Massachusetts for which a registration is required and who is not in possession of such registration may be punished by a fine of not less than two hundred dollars and not more than five hundred dollars and may be restrained from doing business in Massachusetts. M.G.L. c. 62C, § 76;

(c) No person may do business in Massachusetts as a vendor or an operator unless a certificate of registration has been issued to him for each place of business. M.G.L. c. 64G, § 6; M.G.L. c. 64H, § 7;

(d) No person engaged in business as a vendor may sell tangible personal property for storage, use or other consumption in Massachusetts unless a certificate of registration has been issued to him. M.G.L. c. 64I, § 9.

REGULATORY HISTORY
Date of Promulgation: 12/6/85