Bill
S 2095
Creates a vendors’ collection allowance: vendors may retain 2% of taxes they collect, up to $750 per calendar year across 64H and 64I, reducing remittance to the state.
Note on source materials
- The materials provided for “S.2095” contain conflicting and duplicated items (including a federal-sounding PARTNERSHIPS Act text and different sponsor lists). The operative statutory text presented, however, is a Massachusetts bill filed as Senate Docket No. 799 (Sen. John C. Velis) titled “An Act to establish a vendors’ collection allowance.” This summary focuses on that Massachusetts statutory text, which is the only clear, concrete legislative language supplied. If you intended a different S.2095 (for example, a bill on military-spouse leave or a federal tax partnership bill), please confirm and supply the correct text.
Purpose
- To create a vendors’ collection allowance that permits vendors who collect certain state taxes to retain a small portion of the tax they collect, as compensation for the cost of collecting and remitting those taxes.
Key provisions
- Adds a vendors’ collection allowance to:
- Section 5 of chapter 64H (sales tax) and
- Section 6 of chapter 64I (related tax, e.g., meals/local tax) of the Massachusetts General Laws (as in the 2022 Official Edition).
- Amount and method:
- Vendors may retain an amount equal to 2% of the total tax they collect in any calendar year.
- The vendor’s total retention across both chapters (64H + 64I) is capped at $750 per calendar year.
- Retention is taken by deducting up to 2% of tax collected during the standard reporting period (i.e., the vendor reduces remittance by that amount).
- Once a vendor has retained the $750 annual maximum, they may not deduct any further amounts from taxes collected until the next calendar year.
Who is affected
- Primary: Businesses and other vendors required to collect and remit taxes under chapter 64H and chapter 64I (retail sellers, restaurants, other taxable vendors).
- Secondary: Commonwealth tax administration (Department of Revenue) — must accommodate the new allowance in filing and reconciliation processes.
- Fiscal impact: The Commonwealth will forgo some tax receipts equal to the sum of allowances retained by vendors (limited to $750 per vendor/year). The magnitude depends on the number of vendors that collect taxes and claim the allowance.
Procedural status (as provided)
- Introduced and filed as Senate Docket No. 799 (sponsor: John C. Velis).
- Legislative action entries in the supplied materials are inconsistent (multiple committee referrals listed). One hearing was scheduled for 09/29/2025 (Finance Committee) in the provided timeline. Confirm current status with the official Massachusetts legislature site for up-to-date procedural posture.
Potential impacts and considerations
- Administrative simplicity: Allows vendors to recoup collection costs without separate reimbursement procedures; implemented via reduced remittance.
- Equity: The flat 2%/ $750 cap favors vendors with larger tax collections (they retain up to the cap but not beyond); very small vendors may hit the $750 cap quickly or may receive only modest benefit if collections are small.
- Revenue: Likely a relatively modest reduction in state tax receipts per vendor (max $750 each), but statewide aggregate impact depends on how many vendors claim the allowance.
- Implementation: DOR would need to update remittance forms, guidance, and reconciliation processes to track when vendors reach the annual cap.
If you want, I can:
- Prepare a short fiscal estimate template showing how to calculate potential revenue loss given vendor counts; or
- Reconcile the conflicting sponsor/metadata and produce a summary targeted to the military-spouse leave bill or the federal PARTNERSHIPS Act text if you provide the intended version.
Compiled from official sources — confirm details with the bill’s official record.
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