IMPORTANT UPDATE - Computer Software Service Tax Repealed

On September 27, 2013, Governor Deval Patrick signed legislation repealing the sales and use taxes on computer software services retroactively to July 31, 2013. The legislation requires any business which collected this tax between July 31 and September 27 to return it to the customer who paid it. Businesses which have already filed a return and submitted these taxes to the Department of Revenue are eligible for a refund by electronically amending their returns on WebFile for Business. Vendors must return these refunds to customers within 30 days of receipt. The legislation also gives vendors until December 31, 2013 to file for these refunds. See TIR 13-17: Repeal of the Computer Software and Services Tax for further guidance on the repeal and information about filing for refunds. DOR will post further guidance on the repeal and information about filing for refunds on Monday.


 Here you will find a general overview of the changes as well as links to any notices, forms and Technical Information Releases providing more detailed information. 

Cigarette & Tobacco Excise Increase

What's changed?

The Massachusetts Legislature recently enacted an increase to the excise on cigarettes, cigars, smoking tobacco and smokeless tobacco products. The new law is effective July 31, 2013.

What are the new rates?

The excise on cigarettes will increase as follows:

 Current TaxIncreaseNew Tax
Package of 20$2.51$1.00$3.51
Package of 25$3.1375$1.25$4.3875

The cigar and smoking tobacco excise imposed by the General Laws of Chapter 64C will increase from 30% to 40% of the wholesale price of the products, and smokeless tobacco products will increase from 90% to 210% of the wholesale price.

What do I need to do?

Cigarette Retailer Licensees are required to take an inventory of all cigarettes on hand and complete Form CIN (Cigarette Inventory Tax Return for Non-Stampers) at the opening of business on July 31, 2013. Form CIN is used to report and pay the increase in the excise due on stamped packages of cigarettes, including stamped packages of little cigars, in inventory as of the opening of business on July 31, 2013. 

Retailers with two or more locations may file a consolidated return so long as they follow the instructions on Form CIN.  Payment of the inventory tax must be remitted with Form CIN by August 20, 2013.

Form Cigar 2, Cigar and Smoking Tobacco Excise Return, for the quarter ending September 30, 2013 will include two tax rates to report cigars and smoking tobacco purchased, imported, manufactured or acquired in Massachusetts.  For the period July 1, 2013 through July 30, 2013, you must report products at the old rate of 30% of the wholesale price of the products.  For the period July 31, 2013 through September 30, 2013, you must report the products at the new rate of 40% of the wholesale price of the products. Form Cigar 2 will be mailed to you in September 2013 and will be due October 21, 2013.

Forms

Form CIN, Cigarette Inventory Tax Return for Non-Stampers pdf format of    CIN.pdf

Form CIS, Cigarette Inventory Tax Return for Stampers pdf format of    CIS.pdf

Form CIV, Cigarette Inventory Tax Return for Vending Machine Operators pdf format of    CIV.pdf

Form Cigar-2, Cigar and Smoking Tobacco Excise Return pdf format of    cigar_2.pdf  (for transactions occurring between July 1, 2013 and Sept. 30, 2013)

Form CT-11C, Non-Stamper Cigarette Excise Return  pdf format of    Form CT-11C, Non-Stamper Cigarette Excise Return   (for transactions occurring on or after July 1, 2013 and September 30, 2013)

Form CTS-8C, Untaxed Cigarette, Smokeless Tobacco, Cigar and Smoking Tobacco Return pdf format of    Form CTS-8C  (for transactions occurring on or after July 31, 2013)

More information

Cigarette Retailer Notice pdf format of    Notice to Licensed Cigarette Retailers

Cigarette Stamper Notice pdf format of    Notice to Stampers

Cigar Distributor Notice pdf format of    Notice to Cigar and Smoking Tobacco Distributors   


Gasoline and Special Fuels Excise Rate Increases

What's changed?

The Massachusetts Legislature recently enacted a three cent per gallon increase on the gasoline and special fuels excise. The gasoline excise imposed by Chapter 64A of the General Laws and the special fuels excise imposed by Chapter 64E of the General Laws are increased from $0.21 per gallon to $0.24 per gallon. The new law is effective July 31, 2013.

What is the new rate?

Taxable sales or use on and after July 31, 2013, are taxable at the new rate of $0.24 per gallon. 

What must I do?

The July 2013 tax return must cover the period from July 1, 2013 through July 30, 2013, at the old rate of $0.21 per gallon. The closing inventory for July 2013 must be taken on July 30, 2013.

The August 2013 tax return must cover the period from July 31, 2013 through August 31, 2013, at the new rate of $0.24 per gallon. Opening inventory for August 2013 must be taken on July 31, 2013.

Forms

Fuels Excise Forms for Transactions Occurring on or after July 31, 2013

More information

Gasoline Licensee Notice pdf format of    Notice to Gasoline Licensees

Special Fuel Supplier Notice pdf format of    Notice to Licensed Special Fuels Suppliers

Special Fuels User-Seller Notice pdf format of    Notice to Licensed Special Fuels User-Sellers