WeVote
Log In

Bill

Bill

SD 688

An Act exempting residential security systems from sales tax

194th Legislature (2025-2026)

The bill would exempt from sales tax equipment directly related to a residential security system in a homeowner’s principal residence in Massachusetts.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 688

Summary: Senate Docket No. 688 — An Act exempting residential security systems from sales tax

What this bill does

  • The bill proposes a sales tax exemption for the sale of equipment directly related to a security system used in a residential principal residence within Massachusetts.
  • It amends Chapter 64H (Massachusetts sales tax) by adding a new subsection (yy) to Section 6, clarifying that such equipment purchases would not be subject to sales tax when used in a homeowner’s primary residence.
  • The exemption is limited to equipment related to a security system as defined in section 57 of chapter 147; the exact scope relies on that cross-reference’s definition.

Key provisions

  • Amends: Chapter 64H, Section 6, by inserting subsection (yy).
  • Scope of exemption: Sales of equipment directly relating to a security system used in an individual’s principal residence in the Commonwealth.
  • Definition reference: The term “security system” is defined in section 57 of chapter 147 (Massachusetts General Laws), which determines what qualifies for the exemption. (The bill does not reproduce the full definition within its text; it relies on the existing statutory definition.)
  • Effective impact: The exemption would apply at the point of sale for qualifying equipment, reducing or eliminating the sales tax for eligible purchases.

Who would be affected

  • Homeowners and tenants purchasing residential security system equipment (e.g., sensors, cameras, control panels, wiring, and related devices) used in their principal residence.
  • Retail sellers and installers of residential security equipment, who would no longer collect sales tax on qualifying goods.
  • State revenue: Potential reduction in state tax revenue proportional to the volume of eligible equipment sales.

Status and procedural timeline

  • Introduced: February 27, 2025.
  • Status: House concurred (February 27, 2025).
  • Subsequent action: Referred to the Committee on Revenue (February 27, 2025).
  • Legislative context: Similar matter previously filed in the 2023-2024 session as Senate No. 1809.

Potential impact and considerations

  • Fiscal: The measure would lower state revenue from sales tax on eligible residential security equipment; the magnitude depends on consumer demand and purchasing trends for home security systems.
  • Policy: Clarifies consumer incentives for home security investments; aligns tax treatment with other residential equipment exemptions (subject to the state’s broader tax policy framework).
  • Implementation: Administrative details will hinge on the cross-referenced definitions in section 57 of chapter 147 to determine what qualifies as a “security system” for exemption purposes.

Note

  • This summary reflects the bill text and listed status as of the latest committee actions. If adopted, the exemption would become part of the Massachusetts General Laws upon enactment.

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

Sign in to ask a question.