The Tentacles of Taxachusetts (forcing NH businesses to collect it's sales tax)

American Spectator ^ | May 13, 2009 | Daniel J. Flynn

[reaganaut1]

...

Last week, Massachusetts' Supreme Judicial Court heard arguments in Town Fair Tire v. Massachusetts. In the coming months, the Supreme Judicial Court will decide the issue at hand: whether Massachusetts has the right to force businesses in New Hampshire to collect Bay State sales taxes when selling items to Massachusetts residents. Given the recent vote in the Massachusetts House of Representatives to increase sales taxes by 25 percent, the impulse to dam the flood of Massachusetts shoppers into sales-tax-free New Hampshire grows stronger among Bay State officials perpetually frustrated with potential tax dollars flowing north across the border.

Town Fair Tire v. Massachusetts revolves around a tax bill presented to three New Hampshire Town Fair Tire (TFT) stores by the Massachusetts Department of Revenue. The bill stems from a Massachusetts audit of the New Hampshire stores covering the period of October 2000 to April 2003. The Bay State estimated that it lost revenue justly owed to it due to more than 300 border-crossing shoppers, and demanded that TFT -- which has numerous stores in Massachusetts as well -- pony up $108,947 in taxes, interest, and penalties.

TFT's invoices revealed customers listing Massachusetts addresses. "Based upon the evidence, and in the absence of evidence to the contrary, the [Tax] Board inferred that the vehicles owned or operated by Massachusetts residents also bore Massachusetts registration plates ('license plates') and certificates of inspection ('inspection stickers'), which provided additional evidence to TFT of the intended place of use of the tires," the state's appellate tax board judged. Massachusetts assumed that the addresses on the invoices were connected to cars with Massachusetts plates and inspection stickers, the presumed sight of which should have prompted tire technicians to alert clerks to assess a 5 percent tax upon the sale.

[reaganaut1]

Ugh, the “it’s” should be “its” in the title.

[Theodore R.]

This is comical to the extent that MA liberals go into NH to avoid sales taxes even though they impose on themselves some of the highest rates of taxation in the country. It makes one doubt the intelligence of John F. Kerry, EMK, and indeed the MA voters themselves. But they know everything in MA, right?

[NewHampshireDuo]

The Mass DOR can make the IRS look like amateurs.

[TurtleUp]

TFT's invoices revealed customers listing Massachusetts addresses. "Based upon the evidence, and in the absence of evidence to the contrary, the [Tax] Board inferred that the vehicles owned or operated by Massachusetts residents also bore Massachusetts registration plates ('license plates') and certificates of inspection ('inspection stickers'), which provided additional evidence to TFT of the intended place of use of the tires,"

My inference would be that former Massachusetts residents were escaping the socialist government of that People's Republic, moving to a state with more individual rights and freedom, and that the "intended place of use of the tires" was outside Massachusetts. Of course, I would expect a mechanic installing tires to pay more attention to my tires than to speculation on my future plans. I hope TFT wins in court. If not, I hope they stop collecting addresses and ignore the socialist government to the south.

[ClearCase_guy]

It's important to note that NH stores do not collect sales tax at all. They have no mechanism for it. MA is trying to mandate that private businesses, in another state, spend money to implement tax collection activities, and forward that money out of the state, in order to benefit MA.

It's like NH is paying tribute ($) to the Liberal elite of MA. Was there a war? Did NH lose?

[theDentist]

There is a mall in Nashua right by the Massatwochits border where folks love to shop. Rumor was, when it was built, a corner of the building was on the Mass border. Mass. tried collecting taxes from that store. So the mall built a wall inside that store, and knocked down the corner so it no longer resided on the Mass property.

[pnh102]

If the Massachusetts DOR was serious, it would go after the customers individually for unpaid use taxes, as it is probably already empowered to do. The businesses operating outside of MA should tell the DOR to go screw itself.

[Paladin2]

Cash is king.

[Paladin2]

"Was there a war? Did NH lose"

I believe that NH was invaded and taken over by Massholes. Much less "Live Free or Die" there today.

[Rummyfan]

...Massachusetts has the right to force businesses in New Hampshire to collect Bay State sales taxes when selling items to Massachusetts residents

Heck, why stop with New Hampshire? Go for the other forty-eight states! And don't let those Bay Staters on European and Caribbean vacations get off either!

[bill1952]

Well, I imagine that the Federal courts will, in the end, inform Mass that they are, in fact, not a Federal government and that the provisions of the Commerce Clause are not the purview of the respective States.

[massmike]

I would like to apologize to all the residents of New Hampshire for all of the Mass-holes that left Taxachusetts and moved to your state and started voting for the same type of liberals up there that they were trying to get away from down here.

[Travis T. OJustice]

If the Massachusetts DOR was serious, it would go after the customers individually for unpaid use taxes, as it is probably already empowered to do. The businesses operating outside of MA should tell the DOR to go screw itself.

Exactly! There is a vehicle in place already to collect these taxes from individuals. I don't see how they have any jurisdiction over the businesses outside of massachusetts, even if there are stores in Mass.

TFT and every other business should be working VERY hard to kill this likely precedent-setting measure post haste!

[pennboy]

If fast Eddie Rendell hears about this he may set up road blocks on the Delaware-Pa. border for those of us who live in SEPa.If it is expensive and we can carry it,(or borrow a truck) we buy it in Delaware where there is no sales tax. Drive down US 202 into Delaware and the state line is marked by the retail buildings on either side of the road. Philadelphia is instituting a 5 year “temporary” sales tax increase to 8% (2 points higher than the rest of the state)to help with the “fiscal” crises. Yeah, that will help. Not that far to Delaware from Philly.

[andy58-in-nh]

New Hampshire has no state sales tax and no mechanism to collect one. The one-party dictatorship of Massachusetts has no right to impose a requirement that makes other states act as tax collectors for them. I expect the Federal courts will tell them to go pound sand.

It's bad enough that NH residents who work in Massachusetts have to pay income tax to the People's Republic - that's what used to be called "taxation without representation" in less "enlightened" times. And now, the same greedy legislators who drive their taxpayer-fueled SUV's up here on weekends to stock up on tax-free liquor, smokes, etc. want NH businesses to help them steal more income from Massachusetts residents? As Howie Carr would say: "Hey: screw!"

[DM1]

“I would like to apologize to all the residents of New Hampshire for all of the Mass-holes that left Taxachusetts and moved to your state and started voting for the same type of liberals up there that they were trying to get away from down here.”

hey i fled to NH from MA and voted my conservatism in every election thus far. Unfortunately my wifes career may take us back to MA - YUCK

[arthurus]

The businesses operating in New Hampshire also operate in Massachusetts and Massachusetts can and will litigate them into bankruptcy if they don’t comply.

[mikey_hates_everything]

Mass. has a list of customers who purchased in NH? Go after the customers, then!

Oh wait, that might affect votes...