Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3189

Introduced
2/27/25  

Caption

To establish a vendors’ collection allowance

Impact

The introduction of HB 3189 is poised to impact state law by amending Chapter 64H and Chapter 64I of the General Laws. This change could potentially encourage more vendors to comply with sales tax collection, as the allowance may provide necessary resources and mitigate the costs associated with tax reporting. The bill seeks to support local businesses, particularly smaller vendors who may struggle with the intricacies of tax collection processes. By allowing them to retain a small percentage of collected taxes, the initiative aims to foster a more business-friendly environment in the Commonwealth.

Summary

House Bill 3189 aims to establish a vendors' collection allowance in Massachusetts. Under this proposed legislation, vendors who collect sales tax would be entitled to retain up to 2% of the total amount of tax they collect in a calendar year. This retention is capped at a maximum of $750 per vendor annually, thereby providing a financial incentive for vendors to promote compliance with tax collection requirements. The intention behind the bill is to alleviate some of the administrative burdens faced by small businesses in handling sales tax collection.

Contention

As with any proposed legislation, there remains some contention surrounding HB 3189. Critics may argue that the cap set at $750 could be insufficient for larger volume vendors, thus limiting its effectiveness. Additionally, there may be concerns regarding implementation and the potential for misuse among vendors if the provisions are not adequately monitored. Proponents, however, emphasize the necessity of providing this support to foster compliance and reduce the operational burden associated with tax collection, particularly for small businesses navigating the complexities of fiscal responsibilities.

Companion Bills

MA H5318

Replaced by Study Order

Previously Filed As

MA S2095

To establish a vendors’ collection allowance

MA HB1021

Retention of Vendors Fees for Collecting Sales Tax.

MA SF44

Vendor allowance provision

MA SF2609

Vendor allowance provision

MA HF386

Sales and use tax; vendor allowance provided.

MA HF2062

Sales and use tax; vendor allowance provided.

MA SF172

Small business tax allowance establishment

MA H2767

Establishing a commission to resolve issues arising from collective bargaining stalemates

MA H4128

Relative to establishing a commission to study gambling winnings

MA H2688

Establishing a primary seat belt law

Similar Bills

No similar bills found.