Governor Patrick recently signed legislation that increases the sales and use tax rate and makes other tax changes that may significantly impact businesses.
Rodman & Rodman, P.C. Certified Public Accountants and Business Strategists, have outlined the tax provisions that take effect August 1, 2009 that may affect accounting systems, cash registers or POS systems of businesses.
· The sales and use tax rate is increased to 6.25 percent from 5 percent.
· The local excise tax rate that cities or towns, except Boston, may impose on the transfer of occupancy of any room in a bed and breakfast, hotel, lodging house or motel located in the city is increased to up to 6 percent of the total amount of rent for such occupancy. The rate for Boston is raised to 6.5 percent.
· The tax exemption for sales of alcoholic beverages is eliminated.
· The new legislation authorizes cities and towns to impose an additional local sales tax on restaurant meals. This legislation is effective October 1, 2009. Specific jurisdictions will enact this new tax, so be sure to check with your accountant.
“To address these changes, businesses may need to update their accounting system, cash registers or POS systems. In addition, many businesses may want to finalize major purchases subject to sales and use tax prior to August 1 to take advantage of the lower rate,” according to Tom Astore, CPA, JD, Tax Manager at Rodman & Rodman (http://www.rodmancpa.com)
For more information about the new sales and use tax provisions, contact Rodman & Rodman at (617) 965-5959.
Rodman & Rodman, P.C.
Founded in 1961, Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies throughout New England. With a focus on strategic planning, Rodman & Rodman goes beyond traditional accounting services and takes a proactive approach when serving clients to increase, preserve and sustain clients’ financial net worth.
From business valuations, taxation, audits, fraud detection and prevention services and succession planning to a variety of accounting IT services including software selection, implementation and training, the team at Rodman & Rodman serves as comprehensive advisors to clients. For individual clients, the company offers personal advisory services such as planning for real estate transactions, obtaining financing, estate planning and retirement planning as well as planning for college education. Rodman & Rodman Certified Public Accountants are located at 3 Newton Executive Park in Newton and 25 Braintree Hill Office Park in Braintree, Mass. For more information, visit their website at www.rodmancpa.com or contact (617) 965-5959.