The sales tax usually is given to the vendor as an addition to the purchase price. The consumer pays the sales tax to the seller at the time of purchase; the vendor then remits the tax to the state. For motor vehicle and trailer sales, however, the sales tax is paid directly to the Commonwealth by the buyer.

Beginning August 1, 2009, the Massachusetts use tax is 6.25 percent of the sales price or rental charge on tangible personal property 1 (including mail order items or products purchased over the Internet) or a number of telecommunications services on which no sales tax, or a sales tax rate less than the 6.25 percent MA rate, was paid and which is to be used, stored or consumed in the state. The use tax, unlike the sales tax, commonly is paid directly to the commonwealth by the purchaser.

Illustration: You purchase household furniture for your MA company or home from an out-of-state firm and pay no Massachusetts or other state sales tax. You are required to pay the 6.25 percent Massachusetts use tax. The use tax is applicable simply because the items were not subject to a sales tax in the other state and due to the fact it is for use in the commonwealth.

Concrete private property includes electronically transferred software.Telecommunications services include things like telephone and other transmissions of information (such as beeper services, cellular telephone services and telegram services). Cable television and Internet access are exempt from the sales tax. Normally, the tax on the sale or use of telecommunications services is a tax on the transmission of messages or information by various electronic means, but not on the sale or use of data itself.

Need help with complex corporate issues in Massachusetts? Talk with a sophisticated Boston corporate attorney. Don’t face your corporate issues on your own. Speak with a Boston corporate attorney with experience handling complex taxation matters in Massachusetts.

Any tax lawyer will tell you that the best way tot stay out of trouble of win a dispute is to keep impeccable records. You may need to hire someone just to deal with the record keeping. Most businesses lose audits because they do not have good record keeping. Anything business related should be kept and filed in the appropriate spot, so it can easily be found when needed.

A tax lawyer will be bale to maximize your business expenses so you can deduct as much as possible. The type of expenses you can deduct must be expenses that specifically relate to your business. If you purchase a computer and use it for business and home work then it cannot be deducted. A Massachusetts business lawyer will be able to tell you how to use items so that they can be deducted and you can lower your tax bill. They will also tell you the best way to justify your deductions if you should be audited.

Entertainment expenses can get a lot of business in trouble, as there are exceptions to the entertainment rule. Up to 50% of client entertainment can e be deducted but if you throw a party for your staff and their families then all of that can be deducted.

There are some other exceptions to this rule as well. Basically a Massachusetts business lawyer will help you save the most you can by truthfully lowering your tax bill and providing help and advice if you should be audited.

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Some highlights regarding the new Massachusetts budget proposal include:

Among other things, the new proposal includes an increase in taxes on soda and candy. The candy and soda tax increase would result by eliminating the current sales tax exemption. Taxing soda and candy would generate $52 million for health prevention programs. These programs are setup to educate the public about lifestyle habits that are detrimental to your health. Sticking with the healthy living theme, new tax hikes are proposed for smokeless tobacco and cigars.

As part of the new budget proposal, the governor has cut back on a tax credit program designed to entice the film industry to come to Massachusetts. Those in the film industry have declared the cuts included in the proposal are short sighted. They site success with the program thus far, including more than 1 billion dollars in economic activity for Mass over the previous 4 years. Mass contends the program may be successful but is expensive to maintain.

A tax credit for life sciences, which was setup in an attempt to attract companies to Massachusetts, is being reduced. The program has been successful and as a result, will be reduced but not eliminated. It has been successful in introducing new jobs to the state.

A program which extends coverage to almost 170,000 Massachusetts adults, will still be funded under Gov Patrick’s newest budget proposal. The program is called the Commonwealth Care program.

Governor Patrick’s proposal is reliant upon $600 million in federal assistance. However, Congress has yet to pass the bill cementing that the assistance will in fact be available. If for any reason the bill does not pass in Congress, than there will be more cuts in the budget. This year’s budget is a three percent increase of the 2010 fiscal year.

Massachusetts tax lawyer Richard M. Stone specializes in advising local, national and multi-national businesses on sophisticated federal and state tax issues. If you need assistance from Massachusetts tax lawyers, contact the Law Office of Richard Stone.