As the effects of COVID-19 have been felt across Massachusetts, the House of Representatives has worked with our colleagues in the Senate and the Baker-Polito Administration to address the public health and economic impacts of the pandemic, particularly for individuals and small businesses.

In April, the Commonwealth implemented administrative tax relief measures for local businesses in order to mitigate the impact COVID-19 has had on our economy. I am glad to share that the Commonwealth is extending those measures for local businesses that have been impacted by the ongoing COVID-19 outbreak, especially in the restaurant and hospitality sectors.

This 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. 

The Department of Revenue will issue emergency regulations and a Technical Information Release to implement these administrative relief measures.