Massachusetts sales tax

The Commonwealth of Massachusetts is a state in New England region of the Northeastern United State. MassachusettsState> gross states product in 2004 was US $318 billion.Per capita personal income in 2004 was US $42,102, making it the 2^nd highest in country behind Connecticut. Massachusetts State has sales tax, replete with numerous exceptions including food product but excluding prepared meals, residential water, gas, electric service, returnable container, clothing and footwear up to $175, prescription medicines, prostheses and medical appliances or services, publications for use in education or religious worship, poultry and live stock.

As well as fruit and vegetables stock for generating food for humans, tools, machinery and parts and used in agriculture cloth or other materials used for making clothing. Residential heat pump, solar or wind system items when purchased with federal food stamps are imposed with the sales taxes. MassachusettsState imposes a flat sales tax of 5.3%. Bay state filers may choose to pay optional higher rate of 5.58%. And sales tax of 5% on retail sales of tangible personal property in Massachusetts by any vendor.

Increase in sales tax

An increase in sales tax would raise a substantial amount of revenue- An increase in sales taxes from 5-6% would generate an additional $750 million in revenue. Also, sales tax could fill in as much as one third of the state's budget whole.

Massachusetts State relies less on the sales tax than almost any state- in financial year (FY) 1999, the sales tax in MassachusettsState yielded an amount of revenue equal to 1.5% percent of personal income.

An increase in the sales tax can be part of progressive solution to the state fiscal crises; While the sales taxes falls more heavily on low and moderate income families than one from upper income ones, other elements of the house likely tax package are highly progressive. So it is possible to craft a revenue package that includes the sales tax and improves the progress of the Massachusetts tax structure.

An increase in sales tax would not cause a massive "run on border" only two states and local state sales tax that border Massachusetts has less than 6%. An increase in sales tax from 5-6 % would result in relatively small change in net price of items on which the tax is levied and thus would not likely compel many Massachusetts residents to race across the border in search of savings.

Other sales tax

Additionally, the room occupancy tax is up to 5.7%, but it can be higher depending on the city or country of the destinations in the Massachusetts. To make things a little more complicated, there may be third fee called a 2.5% convention center surcharge. This is only applied to hotels in Boston city that are located within 2-3 mile radius of the convention center. The organization that have been determined to be tax exempted in Massachusetts are eligible for exempting both 5% state sales tax on hotel rooms, but also for food and the gift shops

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