Winter temperatures usually hover around freezing and sometimes lower. A 6.25% state meals tax is applied to restaurant and take-out meals. To find out more about holiday events in Massachusetts, check out our Holidays section. State Representative Alice Wolf came out against the measure, claiming, “Exemptions should be limited to necessities like food and clothing, not an item like alcohol, which we would just as soon make a little less accessible–especially to teens.”
- Khan said the tax addresses a bigger issue of avoidance within the alcohol issue.
- According to Chesto and his data from the Department of Revenue spokesman Bob Bliss, the amount of excise taxes collected through the alcohol sales in the state amounted to $14.1 million in the first two months of the fiscal year.
- Plus, according to the site, supporters of repealing the sales tax aren’t well organized.
- In 2010, voters rejected a sales tax on alcohol after the state’s general sales tax was raised from 5% to 6.25%.
- “Because alcohol consumption is skewed toward the heaviest drinkers, the bulk of the tax—an estimated 73.5 percent—would be paid by excessive drinkers…”, Jernigan and Zhou wrote.
- Of the 16 states that set quotas on the number of off-premises licenses per population, only three—Montana, South Dakota, and Washington state—had more generous quotas than Massachusetts.
But at least this year we’re getting some extra time to file and pay any tax we owe. This later date is because April 15, 2023, is on Saturday, and the next business day, Monday, April 17, is Emancipation Day. I think that all taxes on consumption are regressive, and as much as I hate having the government use taxes on certain things to control behavior, I think cigarette taxes are appropriate. Wyoming residents pay the lowest taxes on beer, according to March 2009 data collected by the Center for Science in the Public Interest as part of its Alcohol Policies Project.
Massachusetts No Sales Tax for Alcohol Initiative, Question 1 (
State Representative Harriett Stanley stated, “Sin taxes should go toward solving some of the problems that the ‘sins’ cause.” “I’m very supportive of diminishing alcohol, but the tax mechanism is one that’s perceived as harsh, and it’s not likely to be the one that’s going to really take off,” Brownsberger said. Sen. Jason Lewis, who filed a similar bill in the state senate, voiced his support for the measure. “We have nearly three times as many places to buy alcohol for takeaway than we have Dunkin’ Donut stores,” Jernigan said.
Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol’ blog are free advice and you know what they say about getting what you pay for. That’s why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.
The group was does massachusetts have state income taxed by over 90 nonprofit organizations that served state residents that needed addiction services. The organizations that supported this group stated that alcohol did not deserve a tax exemption, because it was not an everyday necessity. The alcohol excise tax proposal, however, encountered opposition from the Massachusetts Package Stores Association, which said it could threaten the existence of locally-owned alcohol retailers. In order to discourage drinking and fund state spending on alcohol, Rep. Kay Khan proposed doubling the excise tax on alcohol in House Docket 3101, filed this January.
Is alcohol taxed in Massachusetts restaurants?
If a liquor license holder operates a restaurant where meals are served, the holder of the license is presumed to be the meals tax vendor, whether the meals are served by the license holder or a concessionaire. Vendors must add a 6.25% sales tax to the selling price of every meal and collect it from the purchaser.
“Because alcohol consumption is skewed toward the heaviest drinkers, the bulk of the tax—an estimated 73.5 percent—would be paid by excessive drinkers…”, Jernigan and Zhou wrote. All suppliers or importers who ship alcoholic beverages into Massachusetts must file Form AB-10 on or before the 20th day of each month. Effective January 1, 2014, the Department no longer requires taxpayers to furnish a bond. The excise tax of 10.75% on recreational cannabis is part of the total tax revenue. There is also a 6.25% state sales tax, plus a local tax of up to 3%. It all added up to $208 million in total tax revenue last fiscal year.
Massachusetts Liquor Tax
Unlike the Massachusetts Sales Tax, excise taxes are not generally deductible on Massachusetts income tax returns or on your federal tax return. However, the IRS occasionally allows certain excise taxes to be deducted for certain tax years.Vehicle Tax DeductionMassachusetts sales and excise taxes on cars or vehicles bought during 2009 may be deducted once from your federal tax return. You cannot deduct excise taxes for vehicles bought during other years.Phone Tax DeductionYou may deduct excise taxes paid on long-distance phone calls between the years of 2003 and 2006 from your federal tax return.
I hope you have found this post helpful and insightful as to what type of common transactions in the brewery will subject you to sales, meals, and beer excise tax. I encourage you all to take a moment and review internally your PoS systems and form AB-1s and reach out to your advisor if you think something feels or does not look right. Lastly, the above discusses the rules when you are “Contract Brewing”.