STATE GOVERNMENT INFORMATIONAL RELEASE REGARDING THE REPEAL OF THE SALES TAX ON ALCOHOL

Dear Massachusetts Package Store Owner:

Below you will find the actual wording of the Technical Information Release issued by the MA Department of Revenue on Dec. 14th. TIR10-24 confirms that alcohol sales in package stores will no longer be subject to the 6.25 sales tax beginning January 1, 2011.

Please keep in mind that you will still be required to collect sales tax on other taxable items such as, kitchen ware, cork screws, etc....You should also be mindful of your obligation to submit your December sales tax payment (alcohol sales tax included) in mid-January.

I also recommend that you pay attention to the very last paragraph of this directive. It is possible that once the sales tax on alcohol is removed, you may no longer be required to file your monthly sales tax payment electronically. You should discuss this with your accountant.

You can get further information regarding the repeal of the sales tax and TIR10-24 by visiting the Department of Revenues website at www.mass.gov/dor.

Sales Tax
Technical Information Release 10-24
Massachusetts Department of Revenue

Repeal of Sales Tax on Alcoholic Beverages

As the result of a referendum question on the November 2, 2010 ballot, the law extending the Massachusetts sales and use tax to alcoholic beverages sold at package stores and liquor stores for off-premises consumption, which was enacted on August 1, 2009, has been repealed, effective for sales on or after January 1, 2011. TIR 09-11 is superseded to the extent it is inconsistent with this TIR, which is effective January 1, 2011.

The ballot provision approved by Massachusetts voters reinstates the sales tax exemption in G.L. c. 64H, § 6(g) for alcoholic beverages subject to the excise under chapter 138. The full text of the approved ballot question is as follows:

Be it enacted by the People, and by their authority as follows:

Section 1. Notwithstanding the provisions of any general or special law to the contrary, alcoholic beverages subject to the excise tax imposed by Chapter 138 of the General Laws shall be exempt from sales tax, and to that end, Section 6(g) of Chapter 64H of the General Laws, as most recently amended by St. 2009, c. 27, § 55, is hereby amended by striking out the words "and 64F" and inserting in place thereof the following words: -64F and 138.

Section 2. Section 1 shall take effect on January 1, 2011.

The state and local (as applicable) sales tax on meals, including alcoholic beverages sold for on-premises consumption, as described in G.L. c. 64H, §6(h) is unchanged by this repeal. Bars, restaurants and caterers must continue to collect and remit sales tax on meals including any charges for alcoholic beverages. Liquor stores acting as caterers as described in Letter Ruling 09-8 also must continue to collect and remit state and local (as applicable) tax on alcoholic beverages sold under catering agreements, including bartending and set-up fees, whether or not separately stated. See DD 06-3 for general rules applicable to catering businesses, which are also unchanged.

This change in the sales and use tax law does not change or amend existing prohibitions and restrictions in the Liquor Control Act, G.L. c. 138. Questions about the Liquor Control Act should be directed to the Alcoholic Beverages Control Commission at (617) 727-3040. See www.mass.gov/abcc.

In applying the new electronic filing requirements described in TIR 10-18, sales of alcoholic beverages will be excluded in determining if a vendor meets the $5,000 threshold. Any vendor who receives an electronic filing notice in error or has questions concerning these requirements should contact DOR Customer Service at (617) 887-MDOR.

Navjeet K. Bal
Commissioner of Revenue
NKB:MTF:ecl 319017v2
TIR 10-24
December 14, 2010
 
Great Partnerships = A Great Victory

The Board of Directors of the Massachusetts Package Store Association (MassPack) would like to thank you all our members and our partners who worked together in a landmark ballot campaign to repeal the 6.25% sales tax on alcohol.

From the start we knew this would be a long and difficult process, but we never wavered in our commitment to overturn this unfair double tax on wine, beer and spirits.

During the 'Vote Yes on One' campaign, we forged stronger relationships with our members and business partners.

We have emerged more committed than ever to stand united against any force that seeks to weaken or harm our industry.

On behalf of MassPack, thank you for all your hard work. We couldn't have taken our message to the public without so many of you who responded with energy and purpose.

We are honored to represent you and serve as your official state trade association.
 
What’s Happening in Washington?

The Federal Drug Administration has been conducting seminars around the country in an effort to educate retailers about the newly revised, and beefed-up, regulations regarding the sale of tobacco products. There was one such seminar held in Boston recently. Here, in a nutshell, is what we have learned.

-It is a violation for a clerk failing to check the ID of a person under the age of 27, even if that person has been carded before. If a clerk is caught failing to make the ID check during a tobacco compliance check, the business and the clerk are subject to fines beginning at $250 and going as high as $10,000 (pending the number of violations). Some reduced fines are available for clerks and businesses that have undergone training at a certified tobacco sales training seminar.

-It is a violation to sell tobacco products to anyone under the age of 18 years. If a person under 18 is sold tobacco, it is likely that no ID check took place. Under these conditions, the clerk and the business are now subject to two fines – a sale to an underage person and failure to ID someone under 27 years old.

For a complete list of the regulations, please visit http://www.fda.gov/breakthechain .

Congress has recently signed HR4173, The Wall Street Reform and Consumer Protection Act. This is a voluminous piece of legislation, and part of contains some credit/debit card reform that is designed to help small businesses. Keep in mind that Congress has 9 months to a year to make rules to help enforce the new law. Items that seem to help retailers…

-credit card companies are prohibited from prohibiting businesses to offer discounts for payments made by cash, checks or credit cards. However, discounts must not differentiate between card issuers and card networks.

-Businesses are permitted to set minimum transaction amounts of up to $10 for credit card use. The Federal Reserve has the right to review this amount and increase it if it deems it necessary.

For more information on your credit card responsibilities, please check with your card processor about HR4173.
 
Trade Show Special Event

SAVE THE DATE

MassPack Trade Show:  Wednesday, October 12, 2011
Watch this space for more details!
 
Server Training

BEVERAGE ALCOHOL TRAINING (BAT)

An essential course for all Liquor Store Owners and their employees.

Massachusetts is serious about eliminating the sale of Alcohol to minors.

Protect your business.

Train Your Staff for Safe and Legal Alcohol Sales

Now that we have entered a period of increased social awareness, we find the need to make changes in the way we operate our businesses. Business practices have changed and new attitudes have emerged. One of the attitude changes which impacts retailers is the urgency to eliminate illegal sales and to keep alcohol out of the hands of underage persons. If you fail to do so, you potentially face severe criminal and civil penalties which could cost you your business.

To help protect you, MassPack provides a Beverage Alcohol Training (BAT) program for package store employees as an education and certification tool. Our seminars provide training in many very important areas:

  • Acceptable forms of Identification
  • Recognizing fake and altered ID’s
  • Handling intoxicated and problem customers
  • Preventing sales to legal customers who are buying for underage people.
  • Understanding the various regulations that govern the sale of alcohol which must be followed to insure a legal sale

Each seminar also provides ample time for student interaction and testing for certification. The three-year certification will satisfy the requirements of any local authorities, and may save you a great deal of money on liability insurance.

Schedule and registration.
 

Associate Member List

2011 Associate Members