MASSACHUSETTS DEPARTMENT OF REVENUE REGULATION FACT SHEET

TITLE: 830 CMR 64H.6.11: Qualifying Small Business Exemption

SUMMARY OF REGULATION: This Regulation repeals and replaces the existing regulation to conform to legislative amendments to M.G.L. c. 64H, § 6(qq), which exempts from sales tax sales of gas, steam, electricity, and heating fuel for use by qualifying small businesses having five or fewer employees and having gross income of less than $1,000,000. This regulation, in particular:

  • provides definitions and rules for determining employee status and explains the rules requiring aggregation of employees of affiliated businesses,

  • provides rules regarding effect of purchaser status and usage of energy on eligibility for exemption,

  • provides substantiation requirements for purchasers claiming exemption, including the good faith requirement for a purchaser's presentation of, and a vendor's acceptance of the Qualifying Small Business Exemption Certificate, Form ST-13,

  • provides special rules applicable to seasonal businesses in determining eligibility for exemption.

REASON FOR CHANGE: Legislative amendments to M.G.L. c. 64H, § 6(qq) render the former regulation obsolete.

REGULATORY HISTORY:
Emergency Regulation: November 30, 1990
Emergency Regulation: February 28, 1991
Emergency Regulation: May 24, 1991
Regulation promulgated: August 16, 1991
Emergency Regulation: March 29, 2006
New Regulation promulgated: June 2, 2006

PREPARED BY: Massachusetts Department of Revenue
Rulings and Regulations Bureau
100 Cambridge Street, 7th floor
Boston, Massachusetts 02114
(617) 626-3250
FAX: (617) 626-3290