| Date: | 08/28/2001 |
|---|---|
| Organization: | Massachusetts Department of Revenue |
| Referenced Sources: | Massachusetts General Laws |
Sales and Use Tax
The purpose of this Technical Information Release is to explain an amendment to the Convention Center Act which provides for construction and financing of convention centers in the Commonwealth. St. 1997, c. 152.
I. Boston, Cambridge, Springfield and Worcester
Under existing law, a 2.75% Convention Center Financing (CCF) fee is imposed on the transfer of room occupancy by any operator of a hotel, motel or other lodging establishment in Boston, Cambridge, Springfield, or Worcester. St. 1997, c. 152, § 9(a). The 2.75% CCF fee, effective January 1, 1998, is in addition to the state room occupancy excise of 5.7% and the local option room occupancy excise of 4% in effect for those cities. The Convention Center Act authorizes the Department to administer the 2.75% CCF fee as a tax under the provisions of Chapter 64G, the room occupancy excise. St. 1997, c. 152, § 9(b). Thus, the 2.75% CCF fee is to be collected and remitted in the same manner and at the same time as the current room occupancy excises. See 830 CMR 62C.16.1(6).
II. West Springfield and Chicopee
Recently enacted legislation, An Act Relative to the Springfield Civic and Convention Center, amended the Convention Center Act to extend the 2.75% CCF fee to the transfer of room occupancy by any operator of a hotel, motel or other lodging establishment in West Springfield or Chicopee. St. 2001, c. 45, §§ 2 - 4, amending St. 1997, c. 152, § 9(a) and (b).
III. Effect of the Amendment
Beginning on October 1, 2001, all operators of hotels, motels and other lodging establishments in West Springfield and Chicopee must begin collecting the 2.75% CCF fee together with the state and local option taxes on the rental of rooms in accordance with the following schedule:
| State Tax | Local Option Tax | CCF Fee | Total | |
| West Springfield | 5.7% | 4% | 2.75% | 12.45% |
| Chicopee | 5.7% | 4% | 2.75% | 12.45% |
The 2.75% CCF fee is to be collected and remitted in the same manner and at the same time as the current room occupancy excises. The October 2001 monthly return (Form RO-2CF) will be the first return to include the 2.75% CCF fee and will be due on or before November 20, 2001. If the total amount due is not collected and remitted timely, interest and penalty charges will be imposed in the same manner as provided for in G.L. c. 62C, §§ 32 and 33.
/s/Bernard F. Crowley, Jr.,
Bernard F. Crowley, Jr.,
Acting Commissioner of Revenue
August 28, 2001
TIR 01-15