"Massachusetts has raised tobacco taxes in 1993, 1998, 2002 and 2008"

This may also happen this year as the Governor, House and Senate all include a dollar a pack increase in their respective budgets for FY 2014.

Cigarette tax revenues, along with the settlement money, brought in about $815 million last year, according to the Department of Revenue. That figure would rise another estimated $165 million - for a total of $980 million - under a proposed dollar-per-pack increase supported by the governor, House and Senate. 

All of the increase would go to fix the state's aging transportation infrastructure. Nearly all the other tobacco tax revenue now goes into the general fund. Only $4.2 million went to anti-smoking programs this year. 

Marc Hymovitz, director of advocacy and Massachusetts state government relations for the American Cancer Society, said the use of tobacco tax revenue to fund anti-smoking programs in earlier years was superseded by the state's economic crises of the past decade.

Read more: http://www.milforddailynews.com/news/x1910060119/States-becoming-more-dependent-on-tobacco-levies#ixzz2UUcmwren

Governor Patrick calls for income tax hike, sales tax cut

Sent to you by Steve Sherlock via Google Reader:

Governor Patrick calls for income tax hike, sales tax cut

via The Milford Daily News News RSS by Bob Salsberg on 1/17/13

Gov. Deval Patrick asked the Legislature on Wednesday to support a net increase of $1.9 billion in state taxes to support major new spending on transportation and education. Patrick used his annual state of the state address to propose hiking the state income tax from 5.25 percent to 6.25 percent, while doubling the personal exemption for all taxpayers and eliminating dozens of itemized deductions. At the same time, he called for reducing the state sales tax from the current 6.25 percent to 4.5 percent.

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In the News: tax holiday, Foursquare founder

Is interest in sales tax holiday on the wane?

by Scott O'Connell/Daily News staff

Foursquare founder, a Medway native, fosters innovation

by Jessica Trufant/Daily News staff

I had the opportunity to meet and talk with Dennis during a conference a couple of years ago. He was quite willing to talk about Foursquare, the lessons learned and to explore how else it could be used. Do you use Foursquare?

In the News: unclaimed money, tax holiday, healthy kids

84 million reasons to check this site

by GateHouse Media, Inc.

Some question value of sales tax holiday

by Laura Krantz/Daily News staff

Stop & Shop hosting families at Fenway for free 'Healthy Kids Summit'

by GateHouse Media, Inc.

2011 sales tax holiday saved consumers estimated $20.98M

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2011 sales tax holiday saved consumers estimated $20.98M

via Commonwealth Conversations: Revenue by Robert Bliss on 1/4/12

DOR has released its final report on the 2011 sales tax holiday weekend that occurred on August 13-14, estimating that the amount of sales tax revenue foregone was approximately $20.98 million, exceeding the estimate of $19.9 million from the 2010 sales tax holiday weekend.

Last summer, just prior to the holiday, DOR issued a preliminary estimate of $20.5 million in potential savings to consumers from the holiday weekend.

The most commonly asked question about this report is why can't DOR say precisely how much sales tax revenue was foregone to the Commonwealth and saved by taxpayers.

Sales tax is reported to the Commonwealth no later than the 20th of the month following. For example, information on December sales tax collections will not be reported until January 20th.
Retailers do not list individual transactions by date when they report that data,  but simply lump together the entire amount of taxable retail sales for the month, and then apply the 6.25 percent sales tax and forward that amount to the Commonwealth.

As a result, DOR receives no reporting on the volume of taxable or untaxable sales on any given day or days. Individual retailers undoubtedly have some information on this, but they are not required to share it with DOR.

So in the absence of hard data, DOR estimates using the methodology outlined in the report.

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Photography services - what is taxable?

As a father with two daughters, the tax implications for wedding photography caught my attention. The MA Dept of Revenue writes:

If you're heading toward a wedding, a few minutes of reading time here could save you and the bride- or groom-to-be a few bucks, or at least explain the possible sales tax implications for your wedding photography or videography (the same rules apply to both). 

Generally, the sales tax applies to any sale at retail by any vendor of tangible personal property, so it is clear that a conventional wedding album or a DVD of wedding photos generates a sales tax. 

But assembling photos in an album or DVD is no longer the sole method of delivering a photography product such as wedding pictures to a client, which makes a world of difference in sales tax. A wedding album or DVD is a product delivered to the purchaser in a tangible medium. You can put your hands on it, and so it is taxed as tangible personal property. 

So how does this work in practice? Let's say you contract with a photographer to pay $3,500 for photography services on your wedding day, and also contract to pay $500 for a DVD of the photos. The $4,000 total is subject to sales tax because the photographer produced a tangible product which you are contractually obligated to purchase.

Read more on this matter in the DOR posting here
http://revenue.blog.state.ma.us/blog/2011/09/a-snapshot-of-salesuse-tax-on-photography-services.html

"Everybody likes to beat the government"

Kirk Simon, owner of Simon's Furniture at 8 Summer St. in Franklin, said his business thrives on tax-free weekend because furniture is a big-ticket item. The sales tax in Massachusetts is 6.25 percent. 

Simon tries to increase business by holding additional sales and extending store hours, he said. This year, the business plans to match the sales tax discount and give customers an additional discount of 6.25 percent on their purchases, he said.
"It's a double tax holiday at Simon's," he said. 

Since people often postpone buying furniture for financial reasons, the tax-free holiday is a popular event for the business, said Simon.

Read more: http://www.milforddailynews.com/archive/x633533992/Local-businesses-expect-good-things-over-tax-free-weekend#ixzz1UuEIbRJ5

How does New Hampshire do it?

New Hampshire is noted for its state liquor stores and no personal income tax. Yet they also have the highest property tax in New England. You have probably been part of a discussion on the pros and cons of what they do versus other states.

The Federal Reserve Bank of Boston has just published their analysis with interesting results. New Hampshire is able to do what it does "in part because of favorable circumstances. States with needier populations or higher costs will likely spend more to provide the same level of services." The report shows ways in which MA and other New England states have needier populations and higher costs.

The report acknowledges that New Hampshire "has also made some policy choices to keep spending low and avoid broad based taxes." So can we do what they did? The report goes on to say that "some choices may be infeasible in the current environment or inappropriate in states with different preferences for public services."

So the bottom line works out to be, if you like MA stay here. If you think you like NH and the way they do things, go there. How NH does what they do doesn't translate well to other states.


FedResBkBoston_neppcrr1101-nhbriefing


This is the report summary. You can find the full report and accompanying tables of supporting figures on the Federal Reserve Bank of Boston website: http://www.bostonfed.org/news/press/2011/pr040711.htm

Note: email subscribers will need to click through to Franklin Matters to view the document.

Franklin, MA

MA sales tax less than national average

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MA sales tax less than national average

via Commonwealth Conversations: Revenue by Robert Bliss on 2/4/11

The non-partisan, non-profit Tax Foundation has released its latest ranking of state sales taxes and Massachusetts ranks 31st (with No. 1 having the highest rate).

Unlike many other states, Massachusetts , which has a sales tax of 6.25 percent, does not allow municipalities to levy their own sales taxes.

The highest combined rate is 9.44 percent in Tennessee, which has a 7 percent state tax and an average local rate of 2.44 percent. California, Arizona, Louisiana and Washington are at the top just below Tennessee.

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Question 3

Question 3 is on the ballot for November's election.

We all want good schools, police and fire protection, safe roads and bridges, clean water and quality health care. Cutting the sales tax by more than half would deprive our communities of the revenue to pay for them.

Franklin already is too dependent upon state aid, to lose additional money would devastate the town. How much would we lose? The website calculates the amount each community would lose if Question 3 is approved.


http://votenoquestion3.com/towns.php?town_code=101

The fact sheet is shown below:

Question 3 Fact Sheet


When you go to the polls in November, make a choice you will be prepared to live with for more than one day.


Franklin, MA