TAX ON THE STORAGE, USE OR OTHER CONSUMPTION OF CERTAIN TANGIBLE PERSONAL PROPERTY

M.G.L. pt. Part I, tit. Title IX, ch. c. 64I

in effect

M.G.L. c. 64I, § 1 Definitions

c. 64I, § 1. Definitions Section 1. As used in this chapter the following words shall have the following meanings:— [First paragraph following introductory paragraph applicable as provided by 2019, 41, Sec. 106.] The words ''business'', ''commissioner'', ''engaged in business'', ''engaged in business in the commonwealth'', ''gross receipts'', ''marketplace'', ''marketplace facilitator'', ''marketplace seller'', ''person'', ''remote marketplace facilitator'', ''remote marketplace seller'', ''remote retailer'', ''retailer'', ''retail establishment'', ''sale'', ''selling'', ''sale at retail'' and ''retail sale'', ''sales price'', ''services'', ''tangible personal property'', ''tax'', ''taxpayer'', ''telecommunications services'', and ''vendor'', shall have the same meanings as in section one of chapter sixty-four H. ''Purchase and purchased'' shall include (i) any transfer of title or possession, or both, exchange, barter, lease, rental, license to use, license to consume, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration; (ii) a transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price; (iii) a transfer for a consideration of the title or possession of tangible personal property which has been produced, fabricated or printed to the special order of the customer, or of any publication; (iv) the performance of services for a consideration, excluding services performed by an employee for his employer and services for which the provider is compensated by means of an honorarium or commission. ''Purchaser'', any person who shall have purchased tangible personal property or services sold at retail and includes a buyer, vendee, lessee, licensee or grantee. ''Store'' and ''storage'', any keeping or retention in the commonwealth for any purpose except sale in the regular course of business or subsequent use solely outside of the commonwealth of tangible personal property purchased from a vendor. ''Use'' shall mean and include (i) the exercise of any right or power over tangible personal property incident to the ownership of that property, except that it does not include the sale of that property in the regular course of business, and (ii) enjoyment of the benefit of a service, except that it does not include the sale of services in the regular course of business. The terms ''store'' and ''storage'', and ''use'' shall not include the keeping, retaining, or exercising of any right or power over tangible personal property for the purpose of subsequently transporting it outside of the commonwealth for use thereafter solely outside of the commonwealth, or for the purpose of being processed, fabricated or manufactured into other tangible personal property to be transported outside of the commonwealth and thereafter used solely outside of the commonwealth.

M.G.L. c. 64I, § 2 Imposition; rate; payment

c. 64I, § 2. Imposition; rate; payment Section 2. Except as otherwise provided in this chapter an excise is hereby imposed upon the storage, use or other consumption in the commonwealth of tangible personal property or services purchased from any vendor or manufactured, fabricated or assembled from materials acquired either within or outside the commonwealth for storage, use or other consumption within the commonwealth at the rate of 6.25 per cent of the sales price of the property or services. The excise shall be paid by the taxpayer to the commissioner at the time provided for filing the returns required by section sixteen of chapter sixty-two C.

M.G.L. c. 64I, § 3 Liability for tax

c. 64I, § 3. Liability for tax Section 3. Every person storing, using or otherwise consuming in the commonwealth tangible personal property or services purchased from a vendor shall be liable for the tax imposed by this chapter. His liability shall not be extinguished until said tax has been paid to the commissioner, except that a receipt from a vendor engaged in business in the commonwealth or from a vendor who is authorized by the commissioner, under such regulations as the commissioner may prescribe, to collect the tax and who is, for the purposes of this chapter, regarded as a vendor engaged in business in the commonwealth, given to the purchaser pursuant to section four, shall be sufficient to relieve the purchaser from further liability for the tax to which the receipt refers.

M.G.L. c. 64I, § 4 Collection of tax; status of tax; sales of motor vehicles

c. 64I, § 4. Collection of tax; status of tax; sales of motor vehicles [First paragraph applicable as provided by 2019, 41, Sec. 106.] Section 4. Every vendor, including a remote retailer, engaged in business in the commonwealth and making sales of tangible personal property or services for storage, use or other consumption in the commonwealth not exempted under this chapter, shall at the time of making the sales, or, if the storage, use or other consumption of the tangible personal property or services is not then taxable hereunder, at the time the storage, use or other consumption becomes taxable, collect the tax from the purchaser and give the purchaser a receipt therefor in the manner and form prescribed by the commissioner. The tax required to be collected by the vendor shall constitute a debt owed by the vendor to the commonwealth. Such vendor shall collect from the purchaser the full amount of the tax imposed by this chapter, or an amount equal as nearly as possible or practicable to the average equivalent thereof; and such tax shall be a debt from the purchaser to the vendor, when so added to the sales price, and shall be recoverable at law in the same manner as other debts. Notwithstanding the provisions of this section, the excise imposed by section two upon the storage, use or other consumption of motor vehicles or trailers shall be paid by the purchaser to the registrar of motor vehicles in the manner prescribed by the commissioner. The vendor thereof shall not add the tax to the sales price and shall not collect the tax from the purchaser. The vendor thereof shall, however, furnish to the purchaser, the registrar and the commissioner a sworn statement of the sale upon a form prescribed by the commissioner, giving such information as the commissioner may require for the determination of such tax. For purposes of such determination, the sales price of any motor vehicle, except a motor vehicle purchased from a vendor registered under this chapter who is regularly engaged in the business of making sales at retail of such motor vehicles, shall be the actual amount paid by the purchaser to the vendor for the motor vehicle or the clean trade-in value of the motor vehicle, whichever is greater, regardless of the actual condition of the vehicle. ''Clean trade-in value'' for a motor vehicle shall mean the clean trade-in value or equivalent or successor values listed in the National Automobile Dealers Association used car guide or other value guides, whether published in print or electronically, or default values as determined jointly by the commissioner and registrar. The commissioner may establish rules and regulations for accepting values below these values based on the condition of the vehicle at the time of sale or other factors as may be appropriate. For the purpose of this section, the term ''motor vehicle'' means any self-propelled vehicle designed for use and used primarily upon the highways.

M.G.L. c. 64I, § 4A Payment and accounting methods for use tax liability; estimated liability table

c. 64I, § 4A. Payment and accounting methods for use tax liability; estimated liability table Section 4A. (a) An individual taxpayer subject to the excise under this chapter who has not paid over the excise due for a purchase of tangible personal property as provided for under chapter 64H shall pay and account for that liability to the commissioner annually either by entering the amount of his liability upon the appropriate line item of the taxpayer's personal income tax return or by filing a separate use tax return in the form prescribed by the commissioner. If the taxpayer elects to report the use tax liability on his personal income tax return, irrespective of the filing status chosen, the taxpayer shall enter either: (i) the estimated liability as provided in subsection (b) based upon the taxpayer's Massachusetts adjusted gross income as determined under section 2 of chapter 62; or (ii) the exact amount of the liability based upon actual taxable purchases for the calendar year. Taxpayers opting to pay an estimated use tax liability for any period in accordance with the subsection (b) shall not be subject to any additional assessment of use tax for the period even if the taxpayer's estimated liability is lower than the actual liability. A taxpayer having no use tax liability for a tax period may enter a zero on the appropriate line of his personal income tax return. (b) A taxpayer electing to satisfy a use tax liability by estimating it shall calculate the liability in accordance with the following table and provisions. The estimated liability shall only be applicable to purchases of any individual items each having a total sales price of less than $1,000. For each taxable item purchased at a sales price of $1,000 or greater, the actual use tax liability for each purchase shall be added to the amount of the estimated liability derived from the below table.

M.G.L. c. 64I, § 5 Computation of tax

c. 64I, § 5. Computation of tax Section 5. For the purposes of adding and collecting the tax imposed by this chapter to be paid to the commonwealth or to be reimbursed to the seller by the purchaser, the tax computation shall be carried to the third decimal place and it shall be rounded to a whole cent, rounding up to the next cent whenever the third decimal place is greater than 4. A seller may elect to compute the tax due on a transaction on an item or an invoice basis.

M.G.L. c. 64I, § 6 Statement and collection of tax

c. 64I, § 6. Statement and collection of tax Section 6. Upon each sale of tangible personal property or services taxable under the provisions of this chapter the amount of tax collected by the vendor from the purchaser under the provisions of this chapter shall be stated and charged separately from the sales price and shown separately on any record thereof at the time the sale is made, or on any evidence of sale issued or used by the vendor.

M.G.L. c. 64I, § 7 Exemptions

c. 64I, § 7. Exemptions Section 7. The tax imposed by this chapter shall not apply to: (a) Sales upon which taxes have been collected under chapter sixty-four H. (b) Sales exempt from the taxes imposed under chapter sixty-four H; provided, however, that in the case of the purchase of any motor vehicle or trailer, as defined in section one of chapter ninety, or any boat or airplane, other than from a vendor who is regularly engaged in the business of making sales at retail of such motor vehicles, trailers, boats or airplanes, the receipts from which are exempt from the tax imposed under said chapter sixty-four H, the purchaser thereof, except when said purchaser is the spouse, mother, father, brother, sister or child of the seller, shall pay the tax imposed by this chapter. (c) Sales upon which the purchaser has paid a tax or made reimbursement therefor to a vendor or retailer under the laws of any state or territory of the United States, provided that such tax was legally due without any right to a refund or credit thereof and that such other state or territory allows a corresponding exemption with respect to the sale or use of tangible personal property or services upon which such a sales or use tax was paid to this state. To the extent that the tax imposed by this chapter is at a higher rate than the rate of tax in the first taxing jurisdiction, this exemption shall be inapplicable and the tax imposed by this chapter shall apply to the extent of the difference in such rates. (d) Storage, use or other consumption of repair or replacement parts exclusively for use in aircraft or in significant overhauling or rebuilding of aircraft or aircraft parts or components on a factory basis. (e) Storage, use or other consumption of aircraft.

M.G.L. c. 64I, § 8 Presumption of sale for use, storage or consumption; burden of proof; resale and exempt use certificates

c. 64I, § 8. Presumption of sale for use, storage or consumption; burden of proof; resale and exempt use certificates Section 8. (a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax imposed hereunder, it shall be presumed that tangible personal property or services sold by any person for delivery in the commonwealth is sold for storage, use or other consumption in the commonwealth until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless he takes from the purchaser a certificate to the effect that the service or property is purchased for resale and such certificate is received and made available to the commissioner not later than sixty days from the date of notice from the commissioner to produce such certificate. Where a certificate is deficient in some material manner and where such deficiency is thereafter removed, also within said sixty day period, the receipt of such certificate shall be deemed to have satisfied the foregoing time limit. [There is no paragraph (b).] (c) The certificate relieves the person selling the property or services from the burden of proof only if taken in good faith from a person who is engaged in the business of selling services or tangible personal property of the same kind as the services or property sold and who holds the registration as provided by section seven of chapter sixty-four H and who, at the time of purchasing the service or tangible personal property, intends to sell the service or property in a sale at retail in the regular course of business or is unable to ascertain at the time of purchase whether the service or property will be sold or will be used for some other purpose. (d) The certificate shall be signed by and bear the name and address of the purchaser and the number of his registration, and personal property sold by the purchaser in the regular course of business. The certificate shall be in such form as the commissioner may prescribe. (e) If the purchaser who gives a certificate stores or makes any use of the service or property other than retention, demonstration or display while holding it for sale in the regular course of business, the storage or use is taxable as of the time the service or property is first so stored or used. If the sole use of the service or property, other than retention, demonstration or display in the regular course of business, is the rental of the property while holding it for sale, the purchaser may elect to pay the tax on the use measured by the amount of the rental charged rather than the sales price of the property to him. (f) It shall be presumed that tangible personal property shipped or brought to the commonwealth by the purchaser was purchased from a retailer for storage, use or other consumption in the commonwealth, provided that such property was shipped or brought into the commonwealth within six months after its purchase. It shall be presumed that services used within the commonwealth by the purchaser were purchased from the vendor for use within the commonwealth provided such services were used within the commonwealth within six months after its purchase. (g) If the tangible personal property is purchased by a person who will use such property in a manner which exempts it from the tax imposed by this chapter, he may give an exempt use certificate to the vendor, certifying that the property being purchased will be so used. The burden of proving that a sale of tangible personal property by any vendor is exempt under this chapter shall be upon such vendor unless he takes from the purchaser a certificate to the effect that the property will be used in an exempt manner. (h) The exempt use certificate shall relieve the vendor from the burden of proof only if taken in good faith for the purchase of property from a person who is engaged in an activity described in paragraph (r) or (s) of section six of chapter sixty-four H, and who, at the time of purchasing the tangible personal property, intends to use the property in an exempt manner or is unable to ascertain at the time of purchase whether the property will be used in an exempt manner or will be used for some other purpose and such certificate is received and made available to the commissioner not later than sixty days from the date of notice from the commissioner to produce such certificate. Where a certificate is received within the foregoing time limit, but is deficient in some material manner and where such deficiency is thereafter removed, also within said sixty day limit the receipt of such certificate shall be deemed to have satisfied the foregoing time requirement. (i) The exempt use certificate shall be signed by and bear the name and address of the purchaser and the number of his registration, give a description of the property being purchased, certify the exempt use to which the property will be applied and be in such form as the commissioner may prescribe. (j) If a purchaser who gives an exempt use certificate stores or makes any use of the property other than the one therein certified, the storage or use shall be deemed a retail sale by the purchaser as of the time the property is first so stored or used and the cost of the property to him shall be deemed the gross receipts from such retail sale. (k) The commissioner may promulgate regulations determining which services shall be deemed purchased for resale under this section, containing provisions for the issuance of certificates to the effect that services are purchased for resale.

M.G.L. c. 64I, § 9 Registration required

c. 64I, § 9. Registration required [Text of section applicable as provided by 2019, 41, Sec. 106.] Section 9. No person, engaged in business as a vendor including a remote retailer, shall sell tangible personal property for storage use or other consumption in the commonwealth unless a registration has been issued to him in accordance with section sixty-seven of chapter sixty-two C.

M.G.L. c. 64I, § 11 Classified permits establishing percentage of exempt sales

c. 64I, § 11. Classified permits establishing percentage of exempt sales Section 11. Upon application of a vendor, the commissioner may issue a classified permit establishing such vendor's percentage of exempt sales. Such classified permits may be amended or revoked as to classification whenever the commissioner shall determine that the percentage of exempt sales is inaccurate or that such classification is not appropriate.

M.G.L. c. 64I, § 17 Liability for failure to pay tax

c. 64I, § 17. Liability for failure to pay tax Section 17. A person who fails to pay to the commissioner any sums required by this chapter shall be personally and individually liable therefor to the commonwealth. The term ''person'', as used in this section, includes an officer or employee of a corporation, or a member or employee of a partnership or limited liability company, who as such officer, employee or member is under a duty to pay over the taxes imposed by this chapter. A person shall not be personally or individually liable for uncollected use tax due from a corporation, partnership, or limited liability company on its purchases of tangible personal property purchased for use of the corporation, partnership or limited liability company unless the person's failure to pay the tax was willful or unless the person made personal use of the property subject to tax.

M.G.L. c. 64I, § 24 Advertisement that vendor will assume or absorb tax

c. 64I, § 24. Advertisement that vendor will assume or absorb tax Section 24. It shall be unlawful for any vendor to advertise or hold out or state to the public or any customer, directly or indirectly, that the tax, or any part thereof, will be assumed or absorbed by the vendor or that it will not be added to the selling price of the property or services sold or, if added, it or any part thereof will be refunded. Whoever violates any provision of this section shall be punished by a fine of not more than one hundred dollars for each offense.

M.G.L. c. 64I, § 26 Motor vehicles; presumption of transfer for storage, use or consumption; prerequisite for registration; revocation of certificate for failure of payment by check

c. 64I, § 26. Motor vehicles; presumption of transfer for storage, use or consumption; prerequisite for registration; revocation of certificate for failure of payment by check Section 26. For the purposes of this chapter, every transfer of the registration of a motor vehicle or trailer, as defined in section one of chapter ninety, shall be presumed to be for storage, use or other consumption in the commonwealth. Upon the return of the certificate of registration, as required by section two of said chapter ninety, the registrar of motor vehicles shall forthwith inform the commissioner of the date of transfer and the names and addresses of the former and new owners. No certificate of registration shall be issued by the registrar of motor vehicles to the new owner until such new owner shall furnish evidence, on such forms as shall be prescribed by the commissioner and the registrar of motor vehicles, that any tax due under the provisions of this chapter has been paid in accordance with regulations of the commissioner. If payment of any such tax due is made by check and said check is not duly paid, the registrar of motor vehicles may, after hearing, revoke the certificate of registration.

M.G.L. c. 64I, § 26A Motorboats; aircraft; certificate issuance; evidence of tax payment

c. 64I, § 26A. Motorboats; aircraft; certificate issuance; evidence of tax payment Section 26A. The director of the division of motorboats shall not issue a certificate of number for a motorboat under section three of chapter ninety B and the aeronautics division shall not register a federal certificate for an aircraft under section forty-nine of chapter ninety, except in the case of a renewal by the same owner, until the owner shall furnish evidence, on such forms as shall be prescribed by the commissioner, that any tax due under the provisions of this chapter has been paid or that no such tax is due.

M.G.L. c. 64I, § 27 Trade-in of motor vehicles or trailers; use tax

c. 64I, § 27. Trade-in of motor vehicles or trailers; use tax Section 27. Where a trade-in of a motor vehicle or trailer is received by a dealer in such vehicles holding a valid vendor's registration, upon the sale of another motor vehicle or trailer to a consumer or user, the tax shall be imposed only on the difference between the sales price of the motor vehicle or trailer purchased and the amount allowed on the motor vehicle or trailer traded in on such purchase. When any such motor vehicle or trailer traded in is subsequently sold to a consumer or user, the tax provided for in this chapter shall apply. For the purposes of this section, the term ''motor vehicle'' shall mean a self-propelled vehicle designed for use and used primarily upon the highway. The term ''motor vehicle'' shall also mean a ''snow vehicle'' and a ''recreation vehicle'' as defined in section 20 of chapter 90B.

M.G.L. c. 64I, § 31A Bond or deposit; non-resident contractors; definition

c. 64I, § 31A. Bond or deposit; non-resident contractors; definition Section 31A. (a) Where a nonresident contractor enters into a contract with a person pursuant to which or in the carrying out of which tangible personal property will be consumed or used within the commonwealth, the nonresident contractor shall deposit with the commissioner a sum equivalent to 6.25 per cent of the total amount to be paid under the contract, or shall furnish the commissioner with a guarantee bond satisfactory to the commissioner in a sum equivalent to 6.25 per cent of such total amount, to secure payment of the tax payable relative to tangible personal property consumed or used pursuant to or in the carrying out of the contract and shall obtain a certificate in duplicate from the commissioner that the requirements of this subsection have been met. (b) Any person dealing with a nonresident contractor without first obtaining the duplicate copy of the certificate from the commissioner as required in subsection (a) shall deduct 6.25 per cent of all amounts payable to the nonresident contractor and pay it over to the commissioner on behalf of or as agent for the nonresident contractor, or shall furnish the commissioner with a guarantee bond satisfactory to the commissioner in a sum equivalent to 6.25 per cent of such total amount, to secure payment of the tax payable relative to tangible personal property consumed or used pursuant to or in the carrying out of the contract. (c) A person dealing with a nonresident contractor fails to comply with subsection (b), shall be personally liable for payment of the tax imposed by this chapter relative to tangible personal property consumed or used pursuant to or in the carrying out of the contract. As used in this section ''contractor'' shall mean any person engaged in the construction, reconstruction, alteration, remodeling or repair of real property.

M.G.L. c. 64I, § 33 Service of process; nonresident vendors

c. 64I, § 33. Service of process; nonresident vendors Section 33. Any person not a resident of the commonwealth who engages in business in the commonwealth, as defined in section one, shall, as a condition precedent to engaging in business in the commonwealth and by so engaging in business in the commonwealth, be deemed thereby to appoint the secretary of the commonwealth his agent for the service of process in any judicial proceeding under this chapter. Such process shall be served by leaving a copy of the process in the hands of the secretary of the commonwealth or a deputy or in the office of said secretary. Such service shall be sufficient service upon the person; provided, that notice of such service and a copy of the process is, at least fifteen days before the return day of such process, sent by registered mail to such person's last known address, and that the sender's registered mail receipt and the commissioner's affidavit of compliance with this section are appended to the process and filed in the action or proceeding on or before the return day of the process or within such further time as the court may allow. The court in which the action or proceeding is pending may order such continuances as may be necessary to afford the defendant reasonable opportunity to defend the action. Service of process in the foregoing manner shall be of the same force and validity as if served upon the taxpayer personally within the commonwealth.

M.G.L. c. 64I, § 34 Claims for reimbursement on worthless accounts

c. 64I, § 34. Claims for reimbursement on worthless accounts Section 34. Any vendor who has paid to the commissioner an excise under this chapter upon a sale for which credit is given to the purchaser and such account is later determined to be worthless shall be entitled to reimbursement without interest of the excise paid to the commissioner on such worthless account. Such claims for reimbursement, covering the amount of the excise paid on accounts determined to be worthless in the vendor's prior fiscal year, shall be filed on or before the due date, including extensions, of the federal income tax return or annual federal filing in the case of an exempt organization for such prior fiscal year. Any vendor who shall recover, in whole or in part, upon an account previously determined to be worthless for which reimbursement had been received, shall report and include the same in his return for the period during which the recovery occurred. For the purposes of this section, a vendor shall include a person who has made a prepayment of tax under section 3A of chapter 64H.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter64IFetched: 10/20/2026