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Massachusetts

These resources – like the public health crisis itself – are constantly evolving and are only current as to the date of publication. This page was last updated on September 14, 2020.

For more up-to-date information on the relief programs available in Massachusetts, we recommend that you visit the state's COVID-19 Updates and Information website, COVID-19 State of Emergency resources or MassTrac's list of bills related to the COVID-19 pandemic

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Description of Program and Relief

Sales, Meals, and Room Occupancy Tax Relief for Businesses Affected by COVID-19

Small Businesses. The Department of Revenue (DOR) has enacted tax relief measures for small businesses that have been impacted by the ongoing COVID-19 outbreak. This tax relief includes suspending the filing and payment schedules for regular sales taxes, meals taxes, and room occupancy taxes that would otherwise be due in March, April and May, so that they will instead be due on June 20, 2020. Additionally, all penalties and interest that would otherwise apply will be waived. This measure, however, does not apply to marijuana retailers, marketplace facilitators, vendors who sell motor vehicles, or occupancy intermediaries (e.g., non-operator brokers or rent collectors).

Others. If a business does not qualify for the above relief measure, but still has meals tax or occupancy tax filing and payment obligations, DOR will waive any late-filing or late-payment penalties for returns and payments due during the period March 20, 2020 through May 31, 2020. This is a waiver of penalties only; statutory interest will continue to accrue.

Government or Lead Agency

Department of Revenue

Eligibility Requirements/Restrictions

Small Businesses. Businesses that paid less than $150,000 in regular sales plus meals taxes in the year ending February 29, 2020 will be eligible for relief for sales and meals taxes, and business that paid less than $150,000 in room occupancy taxes in the year ending February 29, 2020 will be eligible for relief with respect to room occupancy taxes.

Others. To be eligible for the penalty waiver, the vendors, operators, and intermediaries must file their returns and remit payments on or before June 20, 2020.

List of Additional Information

https://www.mass.gov/info-details/covid-19-resources-and-guidance-for-businesses

830 CMR 62C.16.2(7), available at https://www.mass.gov/regulations/830-CMR-62c162-sales-and-use-tax-returns-and-payments

830 CMR 64G.1.1(11)(g), available at https://www.mass.gov/regulations/830-CMR-64g11-massachusetts-room-occupancy-excise

Technical Information Release (TIR) 20-2, available at https://www.mass.gov/technical-information-release/tir-20-2-late-file-and-late-pay-penalty-relief-for-certain-business


© 2021 Paul, Weiss, Rifkind, Wharton & Garrison LLP. This does not constitute legal advice and does not create an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising. Past representations are no guarantee of future outcomes.

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