Earlier this month, Massachusetts became the latest state to more aggressively pursue sales tax on online purchases, going beyond other states to expand the definition of physical presence to include cookies, apps and server presence with a new directive effective July 1. While these changes may mean a significant revenue bump for Massachusetts, legislative and legal challenges have already begun.
What does the Directive Do? Under the State’s existing sales tax rules, retailers that are engaged in making “taxable sales” in Massachusetts or that sell “taxable products” for use in Massachusetts are required to collect and remit sales tax if the retailer is engaged in a business in Massachusetts. Continue Reading