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Bill

S 1992

An Act repealing advance sales tax payments

194th Legislature (2025-2026) Introduced by Ryan Fattman

Massachusetts bill repealing mandatory advance sales tax prepayments to improve business cash flow but potentially reducing state revenue predictability.

Accompanied a study order, see S2757
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WeVote Research Nonpartisan
Bill Summary · S 1992

Legislative bill overview

S 1992 would repeal Massachusetts' advance sales tax payment requirement, which currently mandates certain businesses to prepay sales taxes before they are collected from customers. The bill aims to eliminate this prepayment obligation, allowing affected businesses to pay sales taxes on a regular schedule instead.

Why is this important

Advance sales tax payments create cash flow challenges for businesses, particularly small retailers and wholesalers, by requiring them to pay taxes on projected revenues before receiving actual customer payments. Repealing this requirement could improve business liquidity and reduce administrative burden, though it may impact state revenue timing and collection predictability.

Potential points of contention

  • Revenue impact timing: The state relies on advance payments for budgeting; eliminating them could create short-term revenue shortfalls or require alternative funding mechanisms
  • Business scope uncertainty: Unclear which businesses currently face these requirements and how selective repeal might create competitive advantages for some sectors over others
  • Tax collection equity: Opponents may argue that advance payments ensure compliance and prevent revenue loss from businesses that later become insolvent or non-compliant

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

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