Massachusetts Advertising Tax #AdTax
Massachusetts has introduced an AdTax in 2011.
This curated list will be the definitive resource for all things related to the Mass AdTax.
Massachusetts Senate version of AdTax Bill S01554
As I described a few weeks ago, I learned from my Senator that the Massachusetts Senate is filing an AdTax bill. He indicated that he was the one filing it, but this one that I found was filed by Senator Tolman.
By Mr. Tolman, petition (accompanied by bill, Senate, No. 1554) of Tolman for legislation to protect main street retailers and promote sales tax fairness in the Commonwealth [Joint Committee on Revenue].
Here's the text of the bill.
SECTION 1. Section 1 of chapter 64H of the General Laws, as appearing in the 2008 Official Edition, is hereby amended in line 265 by striking out the definition of "Vendor" and replacing it with the following:—
“Vendor”, a retailer or other person selling tangible personal property or services of a kind the gross receipts from the retail sale of which are required to be included in the measure of the tax imposed by this chapter, including any person making sales of tangible personal property or services taxable under this chapter by soliciting business through an independent contractor or other representative if the vendor enters into an agreement with a resident of the commonwealth under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet website or otherwise, to the vendor, if the cumulative gross receipts from sales by the vendor to customers in the commonwealth who are referred to the vendor by all residents with this type of an agreement with the vendor is in excess of ten thousand dollars during the preceding four quarterly periods ending on the last day of February, May, August, and November. Such vendor shall be presumed to be soliciting business through an independent contractor or other representative, a presumption which may be rebutted by proof that the resident with whom the vendor has an agreement did not engage in any solicitation in the commonwealth on behalf of the vendor that would satisfy the nexus requirement of the United States constitution during the four quarterly periods in question.
A Day of Speaking with my Massachusetts State Reps About the Massachusetts #AdTax
Today I sent emails to my State Representative, Kate Hogan, and my Senator, Jamie Eldridge expressing my opposition to House Bill H01731.
I'm happy to report that I got calls back today from both of them. +1 for my reps for responsiveness.
Representative Kate Hogan
The call with Rep. Hogan went well. She expressed understanding and support in my opposition to this bill, that sometimes bills are written and supported without fully understanding the unintended consequences. She would oppose a bill that has such obvious flaws and would share my concerns with her peers.
Senator Jamie Eldridge
The call with Jamie Eldridge was a different story. Eldridge was firmly in support of this bill. This was surprising to me to get such a strong response out of the gate as most state politicians that I've spoken to on this issue in other states tended to have less understanding of the issue, and only after a discussion came down on one side of the issue or the other.
He cited fairness for Main Street retailers as the most important factor. That Amazon and other online retailers would not at all be affected by this law, and that it would result in no additional tax revenue was really a non-issue to him.
My points that the law would accomplish nothing but harm to Massachusetts business received little acknowledgement or sympathy. Very disappointing.
The important thing to him was that he supported "fairness" and that the more states pass this legislation, the more likely it would be for companies like Amazon to give in and collect sales tax. His arguments were based more in principle than in practicality and reality. It is difficult to argue with that.
Senator Eldridge then shared with me that he has filed an identical bill, Senate Docket S01527. As it turns out, I didn't realize until the end of the conversation that I was talking to the sponsor of the exact same bill on the Senate side. That explained everything!
Incidentally, I could not find this bill S01527 anywhere on the Mass legislature website. So either I wrote the number down wrong, or it is not up there yet. It did sound very new.
Surely he's receiving pressure from local businesses, chambers of commerce, etc., and this is his way of doing something for them -- regardless of the likely outcome.
Needless to say, I felt like I got nowhere. Does the sponsor of a bill ever give in?
I thanked him kindly and ensured him that he'd be hearing more from me. :)
Twitter / Jangro
Sent emails to State rep Kate Hogan and Senator @JamieEldridgeMA opposing MA Bill H01731 http://t.co/fCK8Emb Hogan called me immediately!
Scott Jangro
jangro
I got a call back immediately from my Rep, Kate Hogan, who said she would oppose the bill and share my email with her peers, that too often people don't recognize unintended consequences of legislation.
Emails and letters do absolutely make a difference. I've seen first-hand by being involved in other states that they get printed out, carried around, and read out loud at meetings and hearings. If there are enough of them, they get dropped on the podium for the thud factor.
I urge you to contact your own reps. If you're looking for ideas about what to write, I'd be happy to share my own letter.
Massachusetts Bill H01731: An Act to protect main street retailers and promote sales tax fairness in the Commonwealth
This bill H01731 is titled, "An Act to protect main street retailers and promote sales tax fairness in the Commonwealth"
Section 1 of chapter 64H of the General Laws, as appearing in the 2008 Official Edition, is hereby amended in line 265 by striking out the definition of "Vendor" and replacing it with the following:—
“Vendor”, a retailer or other person selling tangible personal property or services of a kind the gross receipts from the retail sale of which are required to be included in the measure of the tax imposed by this chapter, including any person making sales of tangible personal property or services taxable under this chapter by soliciting business through an independent contractor or other representative if the vendor enters into an agreement with a resident of the commonwealth under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet website or otherwise, to the vendor, if the cumulative gross receipts from sales by the vendor to customers in the commonwealth who are referred to the vendor by all residents with this type of an agreement with the vendor is in excess of ten thousand dollars during the preceding four quarterly periods ending on the last day of February, May, August, and November. Such vendor shall be presumed to be soliciting business through an independent contractor or other representative, a presumption which may be rebutted by proof that the resident with whom the vendor has an agreement did not engage in any solicitation in the commonwealth on behalf of the vendor that would satisfy the nexus requirement of the United States constitution during the four quarterly periods in question.
PMA MA Advertising Tax | Google Groups
If you're an affiliate in Massachusetts, you should join the PMA MA advertising tax google group. You'll receive important updates and information related to this issue.
Find My Legislator - Massachusetts
If you live in Massachusetts, you should be contacting your legistators about the H01731 bill, Massachusetts AdTax
