NH Says No to Mass. Sales and Use Tax

When the State of Massachusetts attempted to collect sales and use tax from a NH retailer for purchases within NH, the Governor and Legislature acted quickly to put a stop to it.

In response to this claim by Mass. against Town Faire Tire, NH enacted SB-5 prohibiting retailers from disclosing private customer information to foreign states in connection with the collection of certain sales and use taxes.

Gov. John Lynch called the Mass. claim “outrageous” and “unacceptable.”

“We should not allow Massachusetts to turn New Hampshire businesses into tax agents for Massachusetts.” – Gov. John Lynch

The Act creates an irrebutable presumption that, in the absence of voluntary information by the customer, the goods or services purchased in NH are intended to be used in NH.

To impose sales or use tax on purchases within NH, the foreign state must have previously provided written proof to the retailer that its tax laws meet with the very stringent requirements of the new Act. That is unlikely.

Gov. Lynch has vowed to appeal the Town Faire Tire case to Federal Court if necessary to protect NH’s favorable tax structure and pro-business environment.

For more information, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

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