Massachusetts: New Taxes

WEDNESDAY, JULY 31, 2013
TAX INCREASES TO TAKE EFFECT: Gas and tobacco taxes will increase Wednesday, and the 6.25 percent sales tax will be newly applied to certain computer systems services. The taxes go into effect at the stroke of 12 a.m. Wednesday. The Department of Revenue is developing a webpage to inform people about the tax changes.

• GAS TAX: The 23.5 cents-per-gallon gas tax will rise to 26.5 cents per gallon, and at the head of every calendar year, the gas tax will be adjusted to go up with inflation as measured by the consumer price index. The Department of Revenue has not yet determined exactly how the CPI will be measured. The department will contact the 1,435 gas stations and suppliers about the new tax. AAA announced Monday that self-serve regular gasoline is $3.71 on average, nine cents up from the week prior and 23 cents up over the past month. At this time in 2012, the price was 15 cents lower.
• TOBACCO TAXES: The tax on a pack of 20 cigarettes will go up by $1 and packs of 25 will go up $1.25. The taxes on chewing tobacco, dip and cigars are all levied as a percentage of the wholesale price. For cigars, the tax will rise from 30 to 40 percent. For smokeless tobacco, the tax will go from 90 percent of the wholesale price to 210 percent. DOR is notifying the 8,000 tobacco retailers and 24 wholesalers. The stamps on packs of cigarettes will change color, with the more common packs of 20 changing from red to orange, and the packs of 25 changing from gold to pink. Retailers will need to count the packs they have on hand, and add the new tax to the packs they haven’t yet sold.
• COMPUTER SERVICES: Sales of certain computer services will be newly taxed starting Wednesday, though the Department of Revenue is still honing how it will implement the new tax law. Unlike most products, services are not subject to the sales tax. On Wednesday, computer system design or software modification services that are involved in the sale of computer hardware or software will be subject to the 6.25 percent tax. The department will issue further guidance in the future and is accepting comments, according to a DOR official.

http://www.capecodtoday.com/article/2013/07/27/20743-2014-ballot-and-questions-bourne-5m-grant-new-taxes-begin-and-major-offshor