BOSTON – On September 15th, 2020 Governor Charlie Baker and other state leaders announced an extension of the administrative tax relief measures for local businesses that have been impacted by the ongoing COVID-19 outbreak. These tax relief measures are especially aimed to assist those in the restaurant and hospitality sectors.
This announcement includes the extension of the deferral of regular sales tax, meals tax, and room occupancy taxes for small businesses due from March 2020 through April 2021, so that they will instead be due in May 2021. Businesses that collected less than $150,000 in regular sales plus meals taxes in the twelve-month period ending February 29, 2020 will be eligible for relief for sales and meals taxes, and businesses that collected less than $150,000 in room occupancy taxes in the twelve-month period ending February 29, 2020 will be eligible for relief with respect to room occupancy taxes. For these small businesses, no penalties or interest will accrue during this extension period.
For businesses with meals tax and room occupancy tax obligations that do not otherwise qualify for this relief, late-file and late-pay penalties will be waived during this period.
Representative Soter commented “I’ve worked with many businesses within the 8th Worcester District during these trying times and actively continue to do so. The tenacity and persistence that these folks have shown is incredible. They are doing their part to keep these communities going. While I applaud the administration for taking the steps outlined above, we need to assess how else we can assist our small businesses. I will be evaluating what can be done in terms of emergency legislation to support the Commonwealth’s small business owners.”
The Department of Revenue will issue emergency regulations and a Technical Information Release to implement these administrative relief measures.