Skip to comments.Massachusetts watchdog group warns against daily tax remittances proposed in Gov. Charlie Baker’s fiscal 2021 budget
Posted on 11/10/2020 6:26:16 PM PST by matt04
The need for state revenue during a pandemic-driven recession shouldnt convince lawmakers to adopt the daily retail tax remittance schedule proposed under Massachusetts Gov. Charlie Bakers budget plan, a fiscal watchdog group says.
The Massachusetts Taxpayers Foundation said in a position paper released Tuesday an accelerated sales tax remittance schedule proposed by both Baker and the House is a straightforward way to bring in $267 million in one-time revenue, but cautioned against putting the state on track to collect tax revenue daily from retailers. The details would be up to state regulators, not the Legislature.
Despite the many challenges caused by the pandemic, we should not use it as an excuse to enact bad public policy, MTF states. Daily remittance wasnt a good idea when it was first introduced in 2017, and it remains a bad idea now.
Baker, who has repeatedly proposed such a system, included a sales tax modernization plan in his revised fiscal 2021 budget. Both he and House leaders proposed making businesses that collect more than $150,000 in sales tax a year remit those taxes in the last week of the month, rather than the third week of the following month.
Bakers plan differs from the House proposal in that it would require other businesses to jump on board by 2024, expecting payment processors to capture sales tax for electronic payments at the moment a product is purchased.
Massachusetts would be the only state with such a system if the governors provisions were adopted, MTF says.
A daily remittance schedule would mean retailers have to spend money on the payment processors and likely have to pay fees so the processors can automatically transfer the tax revenue to the state, according to MTF.
(Excerpt) Read more at masslive.com ...
Charlie Faker should be looking into voter fraud in the state
Yeah...small business owners are going to submit remittances every day. Quarterly was a pain in the ass.
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