Massachusetts Announces Additional Tax-relief Measures for Businesses

BOSTON — Gov. Charlie Baker, Lt. Gov. Karyn Polito, Senate President Karen Spilka, and House Speaker Robert DeLeo announced additional administrative tax-relief measures for local businesses that have been impacted by the ongoing COVID-19 outbreak, especially in the restaurant and hospitality sectors.

This tax relief builds upon previous, similar tax extensions and includes postponing the collection of regular sales tax, meals tax, and room-occupancy tax for small businesses that would be due from March through August, so that they will instead be due in September. Additionally, all penalties and interest that would otherwise apply will be waived.

“We are proud to join our colleagues in the Legislature to announce this additional relief for local businesses throughout Massachusetts while we all continue to navigate the COVID-19 pandemic and work to protect the health and safety of the Commonwealth’s residents,” Baker said. “These administrative changes extend tax-relief measures put into place earlier in March and will allow additional support for local companies, including small businesses in the restaurant and hospitality industries.”

Businesses that paid less than $150,000 in regular sales plus meals taxes in the year ending Feb. 29, 2020 will be eligible for relief for sales and meals taxes, and businesses that paid less than $150,000 in room occupancy taxes in the year ending Feb. 29, 2020 will be eligible for relief with respect to room-occupancy taxes.

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.

“The Commonwealth is carrying out a historic response to the COVID-19 crisis,” Polito said. “We continue to seek ways to provide local businesses with tools, resources, and support to help reopen the Massachusetts economy while also ensuring key public-health measures are in place.”