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Bill

S 1993

An Act amending advance sales tax payment penalties

194th Legislature (2025-2026) Introduced by Ryan Fattman and 1 co-sponsor

Bill amends Massachusetts sales tax law to modify penalties for late advance tax payments, potentially reducing compliance costs for retailers while affecting state revenue collection.

Accompanied a study order, see S2757
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Bill Summary · S 1993

Legislative bill overview

S 1993 proposes to amend Massachusetts tax law regarding penalties imposed on businesses that fail to make advance sales tax payments on time. The bill, sponsored by Republican senators Bruce Tarr and Ryan Fattman, was referred to the Revenue Committee in February 2025 and had a hearing scheduled for late September. A related study order (S2757) was subsequently filed to examine the issue further.

Why is this important

Sales tax compliance is a significant revenue source for Massachusetts municipalities and the state. Penalties for late advance payments affect small businesses, retailers, and tax administration practices. Changes to these penalties could impact both state revenue collection and the administrative burden on businesses managing tax obligations.

Potential points of contention

  • Penalty severity vs. compliance: Whether current penalties are proportionate deterrents or unnecessarily burdensome on businesses with cash flow challenges
  • Revenue impact: Any reduction in penalties could decrease state/local tax collections unless offset by improved compliance rates
  • Business equity: Questions about whether penalty changes should apply retroactively and whether they affect large retailers differently than small businesses
  • Administrative complexity: Implementation details about how amended penalties interact with existing tax code and enforcement procedures

Compiled from official sources — confirm details with the bill’s official record.

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