Massachusetts Trustee Tax Form TA-1

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Commonwealth of Massachusetts Department of RevenueGeneral Information 2

Specific Information for Each Tax 4

Instructions for Form TA-1 10

Instructions for Form TA-2 14

Locality Codes 18

Local Room Occupancy Excise 19

Principal Business Activity Codes 21

Resources 22

Table of Contents back cover

MassachusettsTrustee TaxForm TA-1Application for Registration and Instructions

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General InformationThis booklet contains the forms needed by business operators,professionals and organizations to register with the MassachusettsDepartment of Revenue (DOR) to collect the following types of“trustee taxes”:

• Withholding on Employee Wages (payroll tax);

• Withholding for Pension Plans, Annuities and RetirementDistributions;

• Sales/Use Tax on Goods;

• Sales/Use Tax on Telecommunications Services;

• Sales Tax on Meals and All Beverages (Meals Tax); and

• Room Occupancy Excise.

Governmental, charitable or non-profit organizations that wish toreceive exempt purchaser status must also use this form to regis-ter with DOR.

Any business operator, professional, organization or individualmaking regular or occasional out-of-state purchases on which ause tax must be paid should use this form to register as a Use TaxPurchaser with DOR.

Form TA-1 must also be used to register as a Chapter 180 Organiza-tion Selling Alcoholic Beverages. This includes, but is not limited to,fraternal organizations.

The booklet begins with a general question and answer section.Specific information for each tax is provided to help you determinewhich taxes you must collect and when you must remit them. Line-by-line instructions to assist you in completing your registrationforms are also included.

Please read the instructions and complete each applicable item onthe form. The accuracy of the information that you provide now willallow us to serve you in the best and most efficient manner. If youneed help, just call one of the assistance numbers listed on the in-side back cover of this booklet.

Who Must Register?Registration with DOR is required if you:

• Have people working for you in Massachusetts;

• Withhold from a pension or annuity plan or from retirementdistributions;

• Sell or rent taxable items in Massachusetts;

• Sell taxable telecommunications services in Massachusetts;

• Serve meals and/or beverages in Massachusetts;

• Provide lodgings in Massachusetts subject to the room occu-pancy excise; or

• Seek exemption from the Massachusetts sales/use tax as acharitable, non-profit or governmental organization.

What Form Should I Use to Register?You should use Form TA-1 in any of the following situations:

• To register for the first time;

• To register a new type of organization for an existing business.For example, if you start your business as a sole proprietorshipand later decide to become a partnership, you must cancel yourregistration as a sole proprietorship and re-register as a partnership;

• To register as an exempt purchaser;

• To register as a Chapter 180 Organization Selling AlcoholicBeverages; or

• To register as a Use Tax Purchaser.

You should use Form TA-2 in either of the following situations:

• To register additional locations. For example, if you expand fromone to three locations, you would complete a Form TA-2 for eachof your new stores; and

• To register one of your locations for a tax that it was not originallyregistered to collect. For example, if you operate a motel and youare adding a restaurant to the motel, you would submit a Form TA-2to register for meals tax.

Will I Be Notified When DOR Has CompletedProcessing My Registration?If you are registering for sales/use tax, meals tax or room occupancyexcise, you will receive a registration certificate after DOR has com-pleted processing your Form TA-1. If you indicate on your Form TA-1that you have been required to collect one of these taxes prior toregistering, you will also receive forms for those prior periods withyour registration certificate.

If you are registering for withholding tax, a Chapter 180 OrganizationSelling Alcoholic Beverages, or as a Use Tax Purchaser, you will notreceive a registration certificate. You will be mailed any tax formsthat you need.

What Should I Do with My Tax RegistrationCertificate?If you are responsible for collecting sales/use tax, meals tax or aroom occupancy tax, you must display your registration certificatein a prominent place where your customers or occupants can seeit. You should follow these guidelines for displaying your certificate:

1. If your business has only one cash register and your customersgenerally see that register, display the certificate there;

2. If you have a number of cash registers, display your certificate inyour customer relations area;

3. If you don’t have a customer relations area or your single registeris not visible to all customers, display your certificate at yourbusiest entrance;

4. If you are operating a single vending machine at each location,the certificate must be attached to the machine so it is visible to cus-tomers; or

5. If you are operating more than one vending machine per loca-tion, the certificate must be displayed at the entrance used by mostof the machine’s customers.

Failure to display your registration certificate may result in suspen-sion or revocation of your registration.

How Long Does My Registration Last?The minimum period for which the Commissioner may issue a reg-istration is three years. You will be informed of any requirement tore-register.

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How Will I Receive My First Form?You will receive in the mail preprinted forms for each of the taxtypes for which you have registered after you submit your registra-tion form. Using these preprinted forms will facilitate processing,ensure accuracy and save processing costs.

Note: If your business size makes you an annual filer, you will notreceive your form until December of the year for which you are filing.

What If I Need to File a Form Before I HaveReceived My Forms from DOR?If a payment is due, but you haven’t received your forms, send inyour payment with an explanatory cover letter. The letter shouldspecify:

• Your name;

• Address;

• Federal Identification number or Social Security number;

• Tax type;

• Tax period;

• Telephone number; and

• Date you filed your Form TA-1.

Mail your letter with payment to:Massachusetts Department of RevenueP.O. Box 7011Boston, MA 02204

Please make your check payable to the Commonwealth ofMassachusetts.

Should I File a Form Even If No Tax Was Due fora Given Period?Yes, please file a form for all periods even when no tax is due —just enter zero in the appropriate places. This is necessary forrecord keeping purposes. It will help avoid requests from DOR forfiling information and will reduce processing time when you areowed money.

Are There Alternative Means of Filing and PayingMy Trustee Taxes?The Department of Revenue has developed a program to accepttrustee tax payments and returns through Electronic Funds Transfer(EFT) and Telefile. EFT eliminates the need for filing paper vouch-ers while Telefile eliminates the need for filing paper returns. EFTis mandatory for taxpayers who have over $250,000 in annual lia-bilities for the following tax types: withholding; sales and use; saleson telecommunications services and corporate excise (foreign anddomestic). It is also mandatory for the following tax types with annualliabilities over $100,000: excises on gasoline; financial institutions,insurance and utilities. Mandatory thresholds apply to individual taxtype liabilities, not combined tax type liabilities.

Note: EFT participation in one tax type does not require EFT par-ticipation in other tax types. Also, you may Telefile your tax returnonly if you are participating in EFT.

Taxpayers whose annual liabilities fall below these thresholds mayvoluntarily participate in EFT and Telefile if their annual liabilities ex-ceed $25,000. For more information about these programs, contactthe Department’s Automated Processing Bureau at (617) 887-5020or by fax at (617) 887-5019.

When Is a Trustee Tax Form Considered to Beon Time?Trustee tax forms are considered timely if they are received on orbefore the due date of the form or if they were postmarked at aU.S. Post Office at least two days prior to the due date.

What Happens If I File Late?If you file and pay the tax after the due date, interest and penaltieswill be assessed as follows:

Interest: If you fail to pay the tax when due, interest will be charged.See Technical Information Release (TIR) 92-6, Statutory Changesin Calculation of Interest and Penalties, for an explanation of howinterest is compounded in Massachusetts.

Penalty for Failure to File: The penalty for failure to file a tax form bythe due date is 1% of the tax due per month (or fraction thereof), upto a maximum of 25%.

Penalty for Late Payment: The penalty for late payment is ¹⁄₂% ofthe tax due per month (or fraction thereof), up to a maximum of 25%.

Are There Any Other Penalties I May Be Liable for?Yes, the Commissioner of Revenue is authorized to impose a 5%penalty on the amount of any underpayment of a tax for which peri-odic payments are due between filing requirements. This applies tobusinesses with annual trustee tax liabilities in excess of $25,000.The amount of underpayment is any portion of a tax payment ordeposit which was due on a monthly or more frequent basis, butwhich was not paid when due.

You should also be aware that willful evasion of taxes is a felonypunishable by a fine up to $100,000 for individuals or $500,000 forcorporations and/or imprisonment for up to five years. Willful failureto collect and pay taxes is also a felony and is punishable by a fineup to $10,000 and/or imprisonment for up to five years.

You should also be aware that corporate officers responsible forpaying a firm's trustee taxes may be held personally liable for anysums due the Commissioner, including tax, penalties and interest,even if the interest and penalties accrue prior to the date personalliability is established.

Are There Taxes Other Than the Trustee TaxesI Collect That I May Be Responsible for Payingto Massachusetts?Yes. Your organization may be required to pay a tax based on itsprofits. For example, you may have a separate obligation to file andpay corporate excise, resident, or nonresident income taxes. Youmay contact our Customer Service Bureau at the telephone num-bers listed on the inside back cover if you have any questions aboutthese obligations.

Annual Withholding Return Filing PaymentCollected Requirement Due$100 or less Annually; due by January 31 Payment due with return.

of the following year.Form M-941A.

From $101 Quarterly; due on or before Payment due with return.up to $1,200 last day of month following close

of calendar quarter.Form M-941.

From $1,201 Monthly; due on or before Payment due with return.up to $25,000 15th day of following month except

for the payments forMarch, June, September andDecember — these are due on thelast day of the following month.Form M-942.

More than $25,000 Quarterly; due on or before When Massachusetts income tax withheld islast day of month following the $500 or more by the 7th, 15th, 22nd and last dayclose of the calendar quarter, of a month, pay over within three business daysi.e., on or before, April 30, July 31, thereafter with a completed Form M-941W forOctober 31 and January 31. each payment.*Form M-941D.

*If, however, you choose to make 52 payments per year, payments should be submitted according to your weekly payroll schedule.

Reminder: All returns must be postmarked by the U.S. Postal Service at least two days prior to the due date of the return.

Specific Information for Each Tax

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Withholding TaxWho Is an Employer?An employer is any person, corporation or organization for whoman individual performs a service as an employee.

What Are My Responsibilities As an Employer?Your responsibilities as an employer are:

• To register with DOR;

• To withhold state income taxes from your employees who areusually employed in Massachusetts and remit those taxes with theappropriate form on time;

• To obtain from each employee a completed Form W-4, EmployeeWithholding Allowance Certificate, and if necessary, a completedForm M-4, Massachusetts Employee’s Withholding Exemption Cer-tificate. A copy of all W-4s for new hires and reinstated employeesshould be faxed to DOR at (617) 887-5049, or mailed to: Massachu-setts Department of Revenue, P.O. Box 7032, Boston, MA 02204within fourteen days of hire or reinstatement. For more information,please call DOR’s Child Support Enforcement Customer ServiceEmployer Support Unit at 1-800-332-2733;

• To file quarterly reports of gross wages paid to each employeewho resides or is employed in Massachusetts. This is done onForm WR-1, Employer’s Quarterly Report of Wages Paid;

• To provide each employee with a Form W-2, Wage and Tax State-ment, by January 31, showing the amount of Massachusetts incometax withheld for the prior year;

• To contact the Department of Employment and Training to deter-mine what your obligations are as an employer for state employ-ment security taxes. Telephone numbers for the Department ofEmployment and Training appear on the inside back cover of thisbooklet; and

• To contact the IRS to see what your obligations are as an em-ployer for withholding federal income taxes.

How Will I Know How Much to Withhold fromMy Employees?The amount you withhold from your employees should be based onthe Form M-4, Massachusetts Employee’s Withholding ExemptionCertificate, submitted by each employee and on Circular M, Mass-achusetts Income Tax Withholding Tables. A detailed explanation ofhow to use the tables or a percentage method for automated pay-roll systems is provided in Circular M which may be obtained by call-ing the Customer Service Bureau at (617) 887-MDOR.

What Is the Withholding Tax Filing Schedule?Different schedules must be followed for filing forms and paying withholding taxes depending on the amount of tax you expect to withholdfrom your employees in a year.

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Do I Have to Withhold If I Am EmployingHousehold Help?Generally, no. DOR follows the IRS guidelines regarding who mustbe withheld upon. If you do not have a requirement to withholdfederal income tax, you will not have such a responsibility in Mass-achusetts. If you are required to file for federal tax purposes, youshould use the Form TA-1 in this booklet to register as an em-ployer for Massachusetts purposes.

If I Own a Business, Am I Considered an Employee?As a general rule, the owner of a business that is incorporated isconsidered an employee for withholding tax purposes. If you are thesole proprietor of a business that has no other employees, youwould not be considered an employee and would not be requiredto register for withholding tax.

However, as the owner you are required to make individual esti-mated income tax payments if you expect to owe more than $200in Massachusetts income tax on the income you receive from thebusiness.

Are Pension, Annuity and Other SimilarPayments Subject to Withholding?Yes. Payments of pension, annuity and other similar paymentsmade to Massachusetts residents who have not elected to be ex-empt from U.S. income tax withholding are subject to Massachu-setts income tax withholding.

Are Lump Sum and Eligible Rollovers fromQualified Pension and Annuity Plans Subjectto Withholding?Generally, lump sum and eligible rollovers that are subject to fed-eral withholding are also subject to Massachusetts withholding, un-less such distributions are of a type that would never be subject toMassachusetts personal income taxation. For more information,please see TIR 93-3, Massachusetts Income Tax Withholding onEligible Rollover Distributions from I.R.C. s.401 Qualified Plansand s.403(b) Annuities, which is available by calling either DOR’sRulings and Regulations Bureau at (617) 626-3250 or DOR’s Faxon Demand system at (617) 887-1900 using the handset and key-pad of your fax machine and entering code number 1813.

How are Such Pension and Annuity WithholdingsReported and Paid?The trustee or administrator of the pension or annuity plan mustregister with DOR by filing a Massachusetts Trustee Tax Applica-tion for Registration (Form TA-1), using the plan’s federal tax iden-tification number and checking box 1(A)(2). Returns and paymentsare subject to the same requirements as withholding on wageswith regard to filing frequency. Please see page 4 for filing and pay-ment requirements.

What Is the Massachusetts Wage ReportingSystem?The wage reporting system uses information submitted by employersto the Department of Revenue for the purpose of verifying eligibilityfor programs such as unemployment insurance benefits, veteransservice benefits and others. Requirements under this system areseparate from the requirement to submit income tax withholdingforms. Employers registered with the Department of Revenue aresent Form WR-1, Employer’s Quarterly Report of Wages Paid, tocomplete on a quarterly basis.

Sales/Use Tax on Goods andTelecommunications ServicesHow Does the Sales/Use Tax Work?The sales tax is 5% of the purchase price or rental charge of tangiblepersonal property sold or rented in the Commonwealth. The tax isgenerally paid to the seller in addition to the purchase price. (An im-portant exception to that rule, however, is the tax on motor vehiclesales which is generally paid by the purchaser when he or sheregisters the new vehicle.) The use tax is 5% of the purchase price orrental charge of taxable goods, generally bought outside Massachu-setts on which no sales tax was paid, that are used, consumed orstored here.

The sales/use tax on telecommunications services is 5% of the pur-chase price of telecommunications services, which include tele-phone and other transmissions of information (such as beeperservices, cellular telephone services and telegram services), that areused or consumed in Massachusetts. Generally, the tax on the saleor use of telecommunications services is a tax on the transmission ofmessages or information by various electronic means, but not on thesale or use of the information itself. The tax is generally paid to theseller in addition to the purchase price. The purchaser is legally ob-ligated to pay this to the Commonwealth directly unless the sellercollected the tax and remits it to the Commonwealth.

Who Is a Sales/Use Tax Vendor?A sales/use tax vendor is a retailer or any other person who sellstangible personal property or services which are subject to theMassachusetts sales/use tax. You are a vendor if:

• You sell or rent tangible personal property and/or telecommuni-cations services in Massachusetts;

• You purchase tangible personal property for resale inMassachusetts;

• You acquire parts to manufacture goods for sale or resale inMassachusetts;

• You have a business location in Massachusetts from which tangi-ble personal property and/or telecommunications services are sold;

• You solicit orders for tangible personal property and/or telecom-munications services within Massachusetts;

• You sell to Massachusetts residents or businesses and delivergoods and/or telecommunications services within the state;

• You collect use tax on tangible personal property and/or telecom-munications services sold to Massachusetts residents or busi-nesses; or

• You wish to collect use tax on tangible personal property and/ortelecommunications services sold to Massachusetts residentseven if you are not required to do so. This includes out-of-state re-tailers and mail order firms.

May I Voluntarily Register As a Sales/Use TaxVendor to Collect Massachusetts Use Tax fromMy Customers?Yes. Massachusetts strongly encourages merchants and telecom-munications services vendors, such as out-of-state retailers or mail-order firms who are not otherwise required to collect sales or usetax, to register as Massachusetts sales/use tax vendors and to col-lect the appropriate use tax on merchandise and/or telecommuni-cations services which are to be used, consumed, or stored inMassachusetts. This will relieve your customers of their Massachu-setts use tax obligation.

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What Items Are Exempt from Sales/Use Tax?There are a number of items that the law exempts from the salestax. The following general categories are exempt:

• Food and Clothing: Sales of pre-packaged food for homepreparation or consumption are generally tax-exempt. Sales of in-dividual items of most clothing costing $175 or less are also gener-ally exempt. (Sales tax is due on the amount over $175.) If youhave specific questions about whether certain items fit into theseexempt categories, please call the Customer Service Bureau at(617) 887-MDOR;

• Casual and Isolated Sales: Infrequent and non-recurring trans-actions made by persons not regularly engaged in the business ofmaking such sales are exempt. For example, sales of used appli-ances by a homeowner or sales at annual or semi-annual yard

sales are exempt. Sales at a flea market, however, are never con-sidered casual and isolated and are subject to the sales tax;

Note: Motor vehicle, boat or airplane casual sales are taxable, ex-cept for certain family transactions;

• Resales: Sales where the purchaser intends to resell the item inthe regular course of business are exempt. In these cases a FormST-4, Resale Certificate, must be given to and retained by theseller as proof the sale was exempt for that reason;

• Sales for Out-of-State Delivery: Sales where the purchaser ac-cepts title to or possession of an item outside Massachusetts aregenerally exempt. Similarly, if a vendor is obligated to deliver to anout-of-state purchaser’s address or to an interstate carrier for sucha delivery, the sale is not taxable in Massachusetts;

Annual Sales/Use Return FilingTax Collected on Requirement Payment DueGoods and/orTelecommunciationsServices$100 or less Annually; due 20 days after end of Payment due with return.

the filing period, i.e., January 20.Form ST-9A; Form STS-A fortelecommunications services.

From $101 up to $1,200 Quarterly; due 20 days after end of Payment due with return.the filing period, i.e., April 20,July 20, October 20 and January 20.Form ST-9Q; Form STS-Qfor telecommunications services.

From $1,201 up to $25,000 Monthly; due 20 days after Payment due with return.end of the filing period,i.e., February 20th for Januaryfiling period. Form ST-9; Form STSfor telecommunications services.

More than $25,000 Quarterly; due 20 days after end Within 5 days of the end of each of the following periods on Formof filing period. ST-9MP, or Form STS-MP for telecommunications services: Form ST-9QR; Form STS-QR for (a) 1st through 22nd day of 1st month of calendar quarter;telecommunications services. (b) 23rd day of 1st month through 22nd day of 2nd month

of calendar quarter; (c) 23rd day of 2nd month through 22nd dayof 3rd month of calendar quarter. Taxes collected from 23rdthrough last day of 3rd calendar month are due on or before 20thday following the calendar quarter and are paid with the return.Differences between total liability and amounts paid during the quarter should be reconciled at the time the return is due.


What Is the Sales/Use Tax Filing Schedule?Different schedules must be followed for filing returns and paying sales/use tax depending on the amount of tax you expect to collect fromyour customers in a year.

What Are My Responsibilities As a Sales/UseTax Vendor?The major obligations of a sales/use tax vendor are:

• To collect a 5% sales or use tax on all sales or rentals of tangiblepersonal property and sales of telecommunications services. Note:The tax must be stated separately on invoices, bills, displays orcontracts;

• To remit all sales/use taxes to DOR with the appropriate Massa-chusetts sales/use tax form on time; and

• To display Form ST-1, Massachusetts Sales and Use Tax Regis-

tration Certificate, in a prominent location on your business prem-ises. See page 2 for guidelines on where these certificates must bedisplayed.

If I Order a Cash Register from Another StateWithout Paying That State’s Sales Tax, Am IRequired to Pay Use Tax to Massachusetts?Yes. If the cash register is purchased for use in your Massachusettsbusiness, you must pay the 5% use tax. As a registered sales/usetax vendor, you may make your use tax payments with your regularMassachusetts sales/use tax form.

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• Sales to Exempt Organizations: Sales to organizations whichhave tax-exempt status are generally exempt (see next columnand page 12 for a more complete explanation of tax-exempt status).The purchaser must present the related Form ST-5, Exempt PurchaserCertificate, or Form ST-5C, Contractor’s Exempt Purchase Certifi-cate, to obtain the exemption. The vendor must assure that thisform is complete and retain it to prove the sale was exempt. Unlessthat is done, the sales tax can be assessed against the vendor;

• Sales to Governmental Agencies: Sales made directly to fed-eral and Massachusetts state or municipal governmental agenciesor entities are exempt;

• Sales to Manufacturers: Sales of materials, tools, fuel, machineryand replacement parts, which will be used directly and exclusivelyin the manufacture, processing or conversion of tangible personalproperty to be sold, including the publishing of a newspaper or theoperation of commercial radio broadcasting or television transmis-sion, are exempt in many cases. The vendor must receive from thepurchaser a Form ST-12, Exempt Use Certificate, and maintainproper records on such sales;

• Sales of Periodicals: Periodicals such as newspapers and mag-azines generally are exempt;

• Admission Sales: Sales of tickets to such activities as sportingand amusement events are exempt;

• Sales of Utilities and Heating Fuel to Residential Users,Small Businesses and Certain Industrial Users: Sales of gas,steam, electricity or heating fuel for residential purposes are ex-empt. Residential use includes use in any dwelling where peoplecustomarily reside on a long-term basis, whether or not the occu-pants of the dwelling are the purchasers of the fuel. Thus, residen-tial use includes use in apartment buildings, rooming houses andnursing homes as well as use in single family or multifamily homes,but generally does not include use in hotels.

Sales of utilities and heating fuel also are exempt when sold tobusinesses with five or fewer employees or to manufacturing facili-ties that use at least 75% of their energy in manufacturing or heat-ing the manufacturing facility. Small businesses must present aForm ST-13, Small Business Energy Exemption Certificate, to thevendor to claim the exemption. Eligible industrial users must pro-vide a Form ST-12, Exempt Use Certificate. Residential users arenot required to present exemption certificates;

• Sales of Telecommunications Services to Residential Users:Sales of local residential telecommunications services billed on arecurring basis or for message unit charges are tax-exempt whenprovided to a residential purchaser, up to a total of $30 per month.Residential telephone service generally includes service providedto an individual for personal use at his or her residential address,including an individual dwelling unit such as an apartment. In thecase of institutions where individuals reside, such as schools ornursing homes, telephone service is considered residential if it isprovided to and paid for by an individual resident rather than by theinstitution. Telephone service provided to a business is not residentialservice even if the business is located in an individual's home. If anotherwise residential telephone is used for business purposes, thebusiness must file a use tax return and pay tax on the service thatis used. Residential users are not required to present exemptioncertificates;

• Charges for Personal or Professional Services: Accounting,insurance, legal and medical services, as well as services such ashaircuts and car repairs are not taxable. Please note: Items sold inaddition to services, such as a bottle of shampoo from a salon orparts for a car repair, are taxable and must be itemized separately

on the bill. Massachusetts tax law treats some products as servicesand therefore exempts them from the sales tax. Other products, how-ever, may combine taxable and nontaxable elements. Still otherproducts, although labeled custom or a service, may not meet thelegal definition for tax purposes. Service providers who have ques-tions about the taxability of their transactions should contact DOR'sRulings and Regulations Bureau in writing for clear guidance onthis issue; and

• Sales of Transportation Services: These services are generallynot taxed and include limousine services and bus and airline tickets.

Who Qualifies As a Tax-Exempt Purchaser?The two basic categories of tax-exempt purchasers are:

(1) Governmental organizations; and

(2) Charitable and non-profit organizations.

Governmental or charitable organizations qualified under Section501(c)(3) of the Internal Revenue Code must register with DOR tobe exempt from paying sales tax on purchases of tangible personalproperty or services. Organizations applying for exempt purchaserstatus must include a copy of the letter granting exempt statusissued by the Internal Revenue Service with this application. Seeline 21 instructions for additional details.

Note: A tax-exempt purchaser is generally still responsible for pay-ment of other taxes such as withholding.

Are the Responsibilities of Out-of-State Vendorsthe Same As In-State Vendors?Yes, the responsibilities of out-of-state vendors are generally thesame as those of in-state vendors. An important difference, how-ever, is that if an out-of-state vendor intends to buy goods only forresale outside of the Commonwealth, the vendor may register insuch a manner. A vendor registered in this manner cannot sell tan-gible personal property in the Commonwealth.

Sales Tax on Meals and All Beverages(Meals Tax)Who Is a Meals Tax Vendor?A meals tax vendor is every operator of an eating or drinking es-tablishment. The meals tax is applicable to such sales regardlessof whether the meal is intended for consumption on or off thepremises.

What Are My Responsibilities As a Meals TaxVendor?The major obligations of a meals tax vendor are:

• To collect a 5% meals tax on all sales of meals. A meal is any foodor beverage prepared for people to eat and provided by a restau-rant for consumption on or off the premises. For the purposes ofthe meals tax, any beverage served for consumption on the prem-ises is also taxable. Note: The meals tax must be stated separatelyon all bills and displays;

• To remit the tax with the appropriate Massachusetts meals taxform on time; and

• To display Form MT-1, Massachusetts Sales Tax on Meals andAll Beverages Registration Certificate, in a prominent location onyour business premises. See page 2 for guidelines on where thesecertificates must be displayed.

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What Is the Massachusetts Meals Tax Rate?A tax of 5% is imposed upon the price of food and all beveragesserved in a restaurant. Included in the sales price are any servicesthat are part of the meal.

What Is a Restaurant?A restaurant is any eating or drinking establishment where food,beverages or food products are provided and for which there is acharge. This includes, but is not limited to, all of the following:

• Cafes

• Canteen trucks or wagons

• Catering businesses

• Cocktail lounges and bars

• Diners

• Dining rooms

• Hotel, motel dining rooms

• Ice cream trucks and food stands

• Lunch counters

• Private and social clubs

• Salad bars in grocery stores

• Snack bars

• Street wagons or carts

• Taverns

• Vending machines or “honor snack trays” that sell snacks orcandy with a sales price of one dollar or more. Honor snack traysconsist of any vending arrangements in which snacks or candy areavailable in an open tray for employees in an establishment thatnormally does not sell food and for which payment is made on thehonor system.

Annual Tax Return FilingCollected On Meals Requirement Payment DueUp to $25,000 Monthly; due 20 days after Payment due with return.

end of the filing period, i.e.,February 20th for January filingperiod.Form ST-MAB-4.

More than $25,000 Quarterly; due 20 days Same as Sales/Use on Form ST-MAB-MP.after end of filing period.Form ST-MAB-QR.


What Is the Meals Tax Filing Schedule?Different schedules must be followed for filing returns and paying meals tax depending on the amount of tax you expect to collect from yourcustomers in a year.

Room Occupancy ExciseWho Is a Room Occupancy Operator?A room occupancy operator is every person or corporation operatinga hotel, lodging house or motel including a private club operatingsleeping accommodations.

What Factors Determine If My Business Is aHotel or Motel?Generally, the following factors are relevant in determining whetherestablishments are “hotels” or “motels” for purposes of the roomoccupancy excise. The presence of one or more of the followingfactors indicates that an establishment is a hotel or motel:

• The establishment provides sleeping accommodations for thelodging of paying guests;

• The typical occupant is a transient or public traveler;

• The occupancy of the room(s) in such an establishment is lessthan one week;

• The relationship between operator and occupant is not that oflandlord and tenant;

• The operation of the establishment is characterized by centralizedmanagement with a manager, or someone of comparable duties,who oversees the general operation of the establishment;

• The establishment provides maid and linen service for its guests; or

• If meals are served, the establishment will have the necessaryutensils, equipment and facilities for cooking, preparing and serv-ing food for its guests.

What Is the Room Occupancy Excise Rate?The basic room occupancy excise rate is 5.7% on the rental ofrooms for a charge of $15.00 or more. In addition, each Massachu-setts city and town is permitted to levy a local option tax. The tax isapplied only to the rent received from an individual who occupiesthe lodgings for 90 days or less.

What Is the Room Occupancy Local OptionExcise?Each city and town in Massachusetts may impose a room occu-pancy excise up to 4% in addition to the basic rate of 5.7%. Thislocal tax is administered by the Department of Revenue. A com-plete listing of the localities that have adopted the excise begins on page 19. If you think your town has adopted the excise, you maycheck by calling the Customer Service Bureau (617) 887-MDOR.

What Is a Lodging House?Massachusetts General Laws defines a lodging house as a resi-dence where lodgings are let to four or more persons unrelated tothe vendor. The tax is applied only to the rent received from anindividual who occupies the lodgings for 90 days or less.

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Chapter 180 Organizations SellingAlcoholic BeveragesWho Qualifies As a Chapter 180 OrganizationSelling Alcoholic Beverages?Generally, any corporation, association, or organization that is li-censed by any city or town in Massachusetts to sell alcoholic bever-ages and which was organized under Chapter 180 of MassachusettsGeneral Laws qualifies as a Chapter 180 Organization Selling Alco-holic Beverages and must pay a yearly excise on the grossreceipts from the sale of alcoholic beverages.

Any corporation, association or organization that is subject to thebusiness corporation excise, or that is a chartered veteransorganization that maintains quarters for the exclusive use of itsmembers, is not liable for this excise.

What Are Gross Receipts From the Sale ofAlcoholic Beverages?Gross receipts from the sale of alcoholic beverages are the totalproceeds from the sales of all drinks with an alcoholic nature orcontent. Any cost or expense relating to the purchase, storage orsale of alcoholic beverages may not be deducted from gross receipts.

What Is the Tax Rate on Gross Receipts?Chapter 180 Organizations Selling Alcoholic Beverages are subjectto an excise of .57% on the gross receipts of all alcoholic beverages.

What Are My Responsibilities As a Chapter 180Organization Selling Alcoholic Beverages?The major responsibility of a Chapter 180 Organization Selling Alco-holic Beverages is to file Massachusetts Form 180 by April 15 ofeach year to report its gross receipts for the previous calendar yearand pay the tax due. If you are filing for the first time you shouldattach a copy of your “determination letter” of your Section 501exempt status as received from the U.S. Internal Revenue Service.

If your organization has more than one location, DOR recommendsthat gross receipts from all locations be combined and reported onone Form 180.

Do I Also Need to Register As a Meals Tax Vendor?Chapter 180 Organizations Selling Alcoholic Beverages do notneed to register as meals tax vendors unless they meet the criteriadiscussed in the “Sales Tax on Meals and All Beverages” section ofthis booklet. However, Chapter 180 Organizations should answerquestions 41 and 42 on the back of Form TA-1.

If you are currently registered as a meals tax vendor with the De-partment of Revenue, you simply need to file Form TA-2 to addyour requirement to file as a Chapter 180 Organization Selling Al-coholic Beverages.

Use Tax PurchaserWho Is a Use Tax Purchaser?A use tax purchaser is any business operator, professional organi-zation or individual that makes regular or occasional out-of-statepurchases which are subject to the Massachusetts use tax.

Note: If you are also registered or registering to collect sales tax,you do not need to register separately as a use tax purchaser.

How Does the Use Tax Work?Taxable goods and/or telecommunications services generally boughtoutside of Massachusetts on which no sales tax was paid that areused, consumed or stored in Massachusetts are subject to the usetax. The purchaser is legally obligated to pay this tax directly to theCommonwealth, unless the tax was paid to the vendor. The usetax rate is the same 5% rate as the sales tax.

What Are My Responsibilities as a Use TaxPurchaser?The major obligation of a use tax purchaser is to remit any use taxto DOR by filing Form ST-10, Business Use Tax Return. This formwill be sent to you for filing on or before April 15 for purchasesmade in the prior calendar year.

If I Bought a Dishwasher in New Hampshirefor Use in My Massachusetts Restaurant, Am I Required to Pay Use Tax to Massachusetts?Yes. If the dishwasher is purchased for use in Massachusetts, youmust pay the 5% use tax.

Annual Rooms Return FilingTax Collected Requirement Payment DueUp to $25,000 Monthly; due 20 days after Payment due with return.

end of the filing period, i.e.,February 20th for January filingperiod.Form RO-2.

More than $25,000 Quarterly; due 20 days Same as Sales/Use on Form RO-MP.after end of filing period.Form RO-QR.


What Is the Room Occupancy Excise Filing Schedule?Different schedules must be followed for filing returns and paying room occupancy excise depending on the amount of tax you expect tocollect from your customers in a year.

Line 1:Check all of the boxes in line 1 that apply to your primary businesslocation. If you operate more than one location, you must attach anadditional Form TA-2 for each of your other locations.

Box 1(A)(1) Check this box if you have employees at your primarybusiness location from whom you are required to withhold state in-come taxes. See page 4 for a complete discussion of withholdingtax responsibilities.

Box 1(A)(2) Check this box if you are registering to withhold from apension or annuity plan. See page 5 for a complete discussion ofwithholding for retirement plans.

Box 1(B)(1) Check this box if you are registering your primarybusiness location for sales/use tax on goods collections.

Box 1(B)(2) Check this box if you are registering your primarybusiness location for sales/use tax on telecommunications servicescollections.

Box 1(B)(3) Check this box if you are registering your primarybusiness location for meals tax collections.

Box 1(B)(4) Check this box if you are registering only to buy goodsin Massachusetts for resale in your home state or other stateswithout paying the Massachusetts sales tax.

Box 1(C) Check this box if you are registering your primary businesslocation for room occupancy excise collections.

Box 1(D) Check this box if you are registering so that you maypurchase items without paying the sales tax because you are anon-profit organization.

Box 1(E) Check this box if you are registering as a Chapter 180Organization Selling Alcoholic Beverages.

Box 1(F) Check this box if you are registering as a Use TaxPurchaser.

Lines 2 and 3: Federal Identification and/orSocial Security NumberCertain types of organizations are required to file with the federalgovernment to obtain a taxpayer identification number. These in-clude:

• Corporations;

• Partnerships;

• Limited Partnerships;

• Executors or Administrators of Trusts and/or Estates;

• Organizations with one or more employees; and

• Civic, social and fraternal organizations otherwise exempt from tax.

Enter your Federal Identification number if you have been assignedone or your Social Security number if your business is a sole pro-prietorship. If you do not have a Federal Identification number, youshould complete U.S. Form SS-4, Application for Employer Identifi-cation Number. This form can be obtained by calling the IRS at1-800-829-1040. You may be able to receive your Federal Identifi-cation number over the phone by calling the Tele-TIN number foryour state listed in the Form SS-4 instructions.

If you submit your Form TA-1 without your Federal IdentificationNumber, you should notify the Department in writing as soon asyou receive your number. Your letter should contain the following:

•Your name and address;

•Federal Identification number or Social Security number;

•Tax type(s) for which you registered;

•Telephone number; and

•Date you filed your Form TA-1.

Mail your letter to: Massachusetts Department of RevenueP.O. Box 7011Boston, MA 02204

Line 4: Number of LocationsEnter the number of business locations registered in Massachusettsthat you operate. If you are registering your business for the firsttime, a Form TA-2 should be attached for each additional locationat which you plan to collect one or more trustee taxes. Also, useForm TA-2 to add a new tax for a previously registered location.

10

Example:Andrea owns a supermarket. One section of the store containsa snack bar. Andrea employs a staff of six, so she must withholdfrom their wages. She must also collect a sales tax on the non-food items she sells, as well as a meals tax on items sold at thesnack bar. She must check boxes A(1), B(1) and B(3) in line 1.

Check as many as apply1. A 1. Employer under the Income Tax

Withholding Law (payroll tax) No Fee2. Withholding for Pension Plans,

Annuities and Retirement DistributionsB 1. Sales/Use Tax on Goods Vendor

2. Sales/Use Tax on TelecommunicationsServices Vendor One

3. Meals Tax on Food and All Beverages $10 Fee4. Purchasing in MA for Out-of-State

Resale Only

Line by Line Instructions for Form TA-1Example:Jeff is a New York antique dealer who occasionally makes pur-chases in Massachusetts for resale, but never sells in Massachu-setts. Jeff would check box B(4) in line 1 for a vendor purchasingin Massachusetts for out-of-state resale.

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Resale Only✔

11

Note: Lines 5 through 10: Enter one letter or number per box. Donot write in the shaded areas.

Line 5: Legal NameEnter the name of the owner if this is a sole proprietorship, thename of the partnership, or the legal name as registered with theSecretary of State’s office if this is a corporation. Note: If you areregistering for the meals tax and your establishment serves alcoholicbeverages, the legal name recorded with the Massachusetts Alco-holic Beverage Control Commission (ABCC) must be entered here.(Also see line 41.)

Lines 6–10: Business Address and TelephoneNumberEnter the actual street address and the telephone number of yourmain location. Do not enter a P.O. box in this area. If you wish toenter a mailing address, you must do so on a Schedule TA-4. Ifyou have more than one location, you should enter the address ofyour principal location or headquarters here.

Lines 11 and 12: Type of Organization and Type of BusinessCheck the applicable boxes in each item. If you check “Other,”please attach a complete written explanation of your organizationaltype and kind of business. Corporations that check manufacturingas their business in line 12 should submit a Form 355Q, StatementRelating to Manufacturing Activities, with their Form TA-1. If yourorganization is a corporation, trust, association, fiduciary or part-nership, you must complete Schedule TA-3, with name, title andSocial Security number of the executive officers or general part-ners. Note: A husband and wife running a business together areconsidered a partnership, not a sole proprietorship.

If We Want to Change Our Legal Organization,Must the Organization Register Again?Yes. If you are changing your legal organization, you must send aletter to the Department requesting cancellation of your old regis-tration and complete a Form TA-1 to register your business’ newlegal status.

Do the Officers and Partners of an Organization HaveAny Special Responsibility for Ensuring That TrusteeTaxes Are Paid Properly?Yes. If a corporation or a partnership fails to pay taxes, the person orpersons who had the duty to submit those payments on behalf of thecorporation or partnership are personally and individually liable forthe amount of the required taxes. A more detailed explanation ofhow this provision of the law works is available in Regulation 830CMR 62C.31A.1.

Line 13: Nature of BusinessEnter a brief description of your business activity. Please beas specific as possible. Examples include retail hardware and gar-den supply store, manufacturer of shoes, excavation contractor orjewelry store.

Line 14: Business CodeEnter the four-digit business code for your business. A completelist of four-digit business codes appears at the back of this booklet.For example, if you operate a bakery, your four-digit business codewould be 2050.

Line 15: Profit/Non-ProfitCheck the appropriate box. Remember, non-profit organizationsmay have a responsibility to register for and collect a tax. Forexample, non-profit organizations that sell tangible personal prop-erty are required to collect any applicable sales tax.

Line 16: Name of Parent CorporationIf your organization is the subsidiary of another corporation, enterthe name of the parent corporation and the parent corporation’sFederal Identification number.

Line 17: Name of Sole OwnerIf your organization is a sole proprietorship, enter the name andSocial Security number of the owner.

Line 18: Reason for ApplyingCheck the first box if you are registering a new business.

Check the second box if you purchased an existing business. Youmust not operate under the tax identification number(s) that wereissued to the prior owner. You must re-register the business andobtain a new Federal Identification number. Use this new number onall tax forms and in any correspondence regarding your account.Enter the previous owner’s name, address and tax number(s) inline 18 so we can update our records.

Check the third box if the business’ legal organizational status isbeing changed. For example, if your organization has changedfrom a sole proprietorship to a corporation, you must re-register.Enter the Federal Identification number and the close date (month,day and year) of the previous organization in line 18. You mustcancel the original registration and submit a new registration forthe new entity. You can cancel the original registration by sendinga letter to: Massachusetts Department of Revenue, P.O. Box 7010,Boston, MA 02204. The letter should specify the name of the orga-nization, the Federal Identification number (or Social Security num-ber if a sole proprietor) and the date the organization ceased doingbusiness.

Note: You are required to file tax returns through the date the orga-nization ceased doing business.

Check the fourth box if you have a reason for applying that is notcovered by one of the first three categories. Please attach a completeexplanation of your situation.

Line 19: Outstanding TaxesIf your firm owes Massachusetts taxes or if any state tax forms aredue, check the “yes” box and provide a full explanation. Attach anadditional sheet if more space is necessary.

Example:Bill has just purchased a record store which was previouslyowned by Janet. The store was located at 101 Anystreet, Any-town, MA and Janet’s Federal Identification Number for the busi-ness was 123-456-789.

Remember: Bill cannot use Janet’s old Federal IdentificationNumber.17. If sole proprietor

(sole owner)

18. Reasons for applying:Started new business Purchased existing business — enter name, address, and Federal

Identification number of previous owner

Organizational change — Federal Identification number and close date of previous organization must beentered, or application will be returned. Other (specify and attach explanation)

Close date:

Name of owner

¨

Federal Identification number

Federal Identification number

Mo Day Yr

Social Security number

BB ii ll ll SSmm iitthh 99 88 77 66 55 44 33 22 11

11 22 33 44 55 66 77 88 99JJaa nn ee tt JJoo nn ee ss ,, 110011 AAnn yy ss ttrr ee ee tt,, AAnn yy ttoo ww nn ,, MMAA

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12

Line 20: Previous Registration RevocationIf your registration has ever been revoked, check the box and pro-vide a full explanation of the circumstances. Attach an additionalsheet if more space is necessary.

Line 21: Exempt Purchaser StatusIf you are applying for exempt purchaser status, be sure to include acopy of the letter granting exempt status issued by the Internal Rev-enue Service. This is generally known as a Section 501(c)(3) letter.If you are registering a subordinate organization covered by an IRSgroup exemption letter, please include a copy of that group exemp-tion letter and a copy of your parent organization’s directory pagelisting your organization as an approved subordinate organization.

Check “yes” if your organization is exempt from paying federal in-come taxes. Also, check the proper box indicating whether or notyour organization is exempt from paying local property taxes.

Note: Lines 22 through 48. Enter only the information pertainingto your primary business location in lines 22 through 48. If you areregistering more than one location, complete a Form TA-2 for eachadditional location.

Line 22: Trade NameEnter the trade name of your business if it is different from thename entered in line 5. For example, Anne Smith might be the soleproprietor of a book store, which operates using the trade nameAnne’s Books.

Lines 23–27: Location Address and TelephoneNumberEnter the address of the physical location of your business, as wellas your telephone number, in lines 23 through 27 if it is differentfrom your principal business location recorded in lines 6 through10. This might occur if a business has a separate headquartersfrom its operating locations. For example, a chain of motels mighthave its primary business location or headquarters in Chicago, butoperate only one motel in Massachusetts. When registering to payroom occupancy excise, the company would record its headquar-ters’ address and telephone number in lines 6 through 10 and thephysical location and telephone number of its Massachusetts motelin lines 23 through 27.

Line 28: Registration Certificate Mailing AddressIf you are registering for sales tax, meals tax or room occupancyexcise, you will be receiving a Certificate of Registration. Pleasecheck the box indicating where you want the certificate sent.

Line 29: Tax Form Mailing AddressPlease check the box indicating where you want your tax returnssent. If you want your returns sent somewhere other than yourbusiness or location address, please complete Schedule TA-4.

Line 30: Seasonal BusinessIf your business is not seasonal, check “no,” leave the rest of line30 blank and proceed to line 31.

If it is seasonal, check the months and partial months during whichyou conduct business. Answer this question separately for eachtax type. For example, if you operate a business that is seasonalunder one tax, but operates year-round under another, check all ofthe months during which you have business activity for each tax.

Line 31: Filing FrequencyMake the best estimate of the amount of tax you expect to collectannually for each tax type for which you are registering. For exam-ple, if you are registering for Sales/Use Tax on Goods and you ex-pect to have approximately $40,000 in taxable sales, your estimatedamount of sales tax collected would be $2,000 ($40,000 x .05).Your estimates will determine the frequency with which you mustfile and remit the taxes you collect. If you cannot make an estimate,we will issue forms that must be filed on a quarterly basis for with-holding and sales tax and on a monthly basis for meals tax androom occupancy tax. If you are not registering to collect a tax, leavethis item blank.

Will DOR Change My Filing Requirements if MyBusiness Grows?Yes. If you pay more (or less) tax than you originally estimated asyour annual tax collection, DOR will change your filing frequency tothe correct category in the following year. For example, if you indi-cate that you will collect less than $100 in sales tax and thereforeregister to file on an annual basis, but collect $1,000 during your firstyear, remit the $1,000 collected on Form ST-9A, Annual Sales andUse Tax Return, and you will receive quarterly forms in the follow-ing year.

Example:Alex owns a hotel on Cape Cod. The hotel is open year-round,but the restaurant and souvenir shop in the hotel are only openfrom May through September. Alex must check all of the boxesfor Withholding and Room Occupancy tax, but only those underMay through September for Sales/Use and Meals tax.

Example:Chris owns a small gift shop. He expects to collect approximately$2,000 in Sales tax annually.

30. Is this location seasonal? (See instructions) Yes No.If “yes,” check month(s) or partial month(s) business operates.

Check Month(s) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Withholding

Sales/Use on Goods

Sales/Use onTelecom.Services

Meals

Room Occupancy

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31. Indicate 12-month estimate of tax to be withheld, collected orpaid for each applicable tax. Check the appropriate box(es).

Check Appropriate Box(es) $0–$100 $101–$1,200 $1,201–$25,000 Over $25,000

Withholding

Sales/Use on Goods

Sales/Use onTelecom. Services

Meals

Room Occupancy

Use Tax Purchaser

$$22 ,, 000000

13

Line 32: Date You Were First Required toWithholdEnter the date you were or will be required to withhold taxes atyour primary business location as the organization type indicatedin line 11.

Line 33: Number of EmployeesEnter the number of people you employ in Massachusetts at yourbusiness location.

Line 34: Date You Were First Required to CollectSales/Use Tax on GoodsEnter the date you were or will be required to collect sales/use taxon goods at your primary business location as the organizationtype indicated in line 11.

Line 35: Sales/Use Tax on Goods Registration FeeIf you are registering for sales/use tax on goods enter the $10 feein line 35.

Note: If you are also registering for sales/use tax on telecommuni-cations services and/or meals tax, enter the $10 fee only in line 35and enter “None” in lines 37 and/or 43, whichever applies.

Line 36: Date You Were First Required to CollectSales/Use Tax on Telecommunications ServicesEnter the date you were or will be required to collect sales/use taxon telecommunications services at your primary business locationas the organization type indicated in line 11.

Line 37: Sales/Use Tax on TelecommunicationsServices Registration FeeIf you are registering only for sales/use tax on telecommunicationsservices enter the $10 fee in line 37.

Note: If you are registering for sales/use tax on goods and/ormeals tax and sales/use tax on telecommunications services,enter the $10 fee in line 35 and enter “None” in lines 37 and/or 43,whichever applies.

Line 38: Food and All Beverages ServedCheck all that apply.

Line 39: Operation of Vending MachinesCheck if you operate a food or beverage vending machine. Youmust register each location at which you operate a food or bever-age vending machine(s). If you operate more than one vendingmachine at the same location, you need to register that location onlyonce. If you operate a vending machine at a location where youare also registered for collection of meals tax as a restaurant, youneed to register the location only once.

Line 40: Date You Were First Required to CollectMeals TaxEnter the date you were or will be required to collect meals tax asthe organization type indicated in line 11 at your primary businesslocation.

Line 41: Liquor License HolderEnter the name and address of the liquor license holder for thislocation as recorded at the Massachusetts Alcoholic BeverageControl Commission (ABCC). This must be the same legal namerecorded in line 5. If the name of the manager appears on the liquorlicense, it must be entered in this line and identified as “manager.”

Line 42: Restaurant or Bar Seating CapacityEnter the seating capacity of your restaurant or bar.

Line 43: Meals Tax Registration FeeIf you are registering only for meals tax and are not registering forsales/use tax on goods and/or telecommunications services, enterthe $10 fee in line 43.

If you are registering for meals tax and sales/use tax on goodsand/or telecommunications services, enter the $10 fee only in line35 and enter “None” in lines 37 and/or 43, whichever applies.

Line 44: Date You Were First Required to CollectRoom Occupancy ExciseEnter the date you were or will be required to collect room occu-pancy excise tax, as the organization type indicated in line 11, atyour primary business location.

Line 45: Locality CodeEnter your locality code in line 45. A complete list of locality codesis provided on page 18. For example, if your business is located inFramingham, your locality code would be 100.

Line 46: Number of RoomsEnter the number of rooms you will be renting in your hotel, motel,or lodging house.

Line 47: Room Occupancy Excise RegistrationFeeEnter $10 if you are registering as a room occupancy operator.

Line 48: Date You Were First Required to PayUse TaxEnter the date you were or will be required to pay use tax.

Line 49: Total Fees for This LocationAdd line 35 and line 47; line 37 and line 47; or line 43 and line 47,whichever is more. This is the total amount of fees due for thislocation.

Example:Michelle bought a hotel on Cape Cod. She began employing peo-ple on May 1, 1996. She opened the hotel with its restaurant andgift shop to the public on May 30, 1996. Because she will be pay-ing withholding, sales/use, meals, and room occupancy taxes,Michelle must fill out all of lines 32 through 47. She will only haveto pay one $10 fee to register as a sales/use and meals tax vendorand another $10 fee to register as a hotel operator.

Withholding Fee Entry 32. Date you were first required to withhold 33. Enter number of employees

No feetaxes at this location. in Massachusetts.

Sales/Use Tax on Goods34. Date you were first required to 35. Enter fee of $10. No fee is required if you are

collect sales/use tax at this location. now registered at this location to collect sales/usetax on telecommunications services or meals tax.

Sales/Use Tax on Telecommunications Services ¨ $

36. Date you were first required to collect 37. Enter fee of $10. No fee is required if you aresales/use tax on telecommunications now registered at this location to collect meals taxservices at this location. or sales/use tax on goods.

Meals Tax on Food and All Beverages ¨ $

38. Check here if you serve Food Beer Wine Alc. bev. 39. Check if food/beverage vending machine.

40. Date you were first required to collectmeals tax.

41. Name and address 42. Seatingon liquor license capacityat this location.

43. Enter fee of $10 unless you have applied for registration as a sales/use tax on goods vendor in line 35, a sales/usetax on telecommunications services vendor in line 37 or are already licensed as a sales/use tax on goods and/ortelecommunications services vendor at this location.

Room Occupancy ¨ $

44. Date you were first required to 45.collect room occupancy tax.

46. Number of rooms 47. Enter fee of $10 if you are a hotel, motel orlodging house operator.

¨ $

Mo Day Yr

Mo Day Yr

Mo Day Yr

Mo Day Yr Locality code

Mo Day Yr

00 55 00 11 9966

00 55 3300 9966

00 55 3300 9966

00 55 3300 9966

8800

4400

1100 .. 0000

nn oo nn ee

110000

nn oo nn ee

33 55 11

1100 .. 0000

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14

Form TA-2 must be used to register additional locations when youhave more than one location. One Form TA-2 must be used for eachadditional location. Form TA-2 may also be used to register a previ-ously registered location for a tax which it was not previously collecting.

Line 1: Check All of the Boxes in Line 1 ThatApply to This LocationBox 1(A)(1) Check this box if you have employees at this locationfrom whom you are required to withhold state income taxes. Seepage 4 for a complete discussion of withholding tax responsibilities.

Box 1(A)(2) Check this box if you are registering to withhold from apension or annuity plan. See page 5 for a complete discussion ofwithholding for retirement plans.

Box 1(B)(1) Check this box if you are registering this location for sales/use tax on goods collections.

Box 1(B)(2) Check this box if you are registering this location forsales/use tax on telecommunications services collections.

Box 1(B)(3) Check this box if you are registering this location formeals tax collections.

Box 1(B)(4) Check this box if you are registering only to buy goodsin Massachusetts for resale in your home state or other stateswithout paying the Massachusetts sales tax.

Box 1(C) Check this box if you are registering this location forroom occupancy excise collections.

Box 1(D) Check this box if you are registering so that you may pur-chase items without paying the sales tax because you are a non-profit organization.

Box 1(E) Check this box if you are registering as a Chapter 180Organization Selling Alcoholic Beverages.

Box 1(F) Check this box if you are registering as a Use Tax Purchaser.

Example:Sarah owns a hotel. Sarah registered the hotel for room occu-pancy tax and withholding. Sarah has decided to add a gift shopin the hotel lobby. Sarah therefore checks only box B(1) in line 1 toregister her hotel for collection of sales/use tax on goods in thegift shop.

Line by Line Instructions for Form TA-2

Line 50: Total Fees from Attached Form(s) TA-2Enter the total fees from the Form(s) TA-2 attached for other location(s).

Line 51: Total FeesAdd line 49 and line 50. This is the total amount of fees due for alllocations you are registering at this time. Make your check payable tothe Commonwealth of Massachusetts and write your Federal Iden-tification number or Social Security number in the bottom left corner.

Who Must Sign Form TA-1?Form TA-1 must be signed by the owner, a partner, or officer of yourorganization. Form TA-1 can only be signed by someone else whohas a Power of Attorney that permits him or her to register the orga-nization with the Department of Revenue. A copy of the Power ofAttorney must be filed with Form TA-1.

SignatureNow that you have completed your Form TA-1, sign your name. Ifyou do not sign your form, it will be returned to you for signature.

Mail your completed Form TA-1 and any necessary attachments to:Massachusetts Department of RevenueData Integration BureauP.O. Box 7022Boston, MA 02204

Are There Schedules Which Must AccompanyForm(s) TA-1 or TA-2?Yes. Please complete and include all of the schedules that apply to you.

Schedule TA-3You must attach Schedule TA-3 if your organization is any of thefollowing:

• Corporation • Fiduciary

• Trust • Partnership

• Association

Schedule TA-3 requires you to list the name, title and Social Secu-rity number of your organization’s executive officers or generalpartners.

Schedule TA-4You must attach Schedule TA-4 if you want your forms sent some-where other than your business or location address. Schedule TA-4is divided into five sections according to tax type. Enter the addressyou wish each type of tax form sent to. (Also see line 29 of the line-by-line instructions.)






Resale Only

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15

Lines 2 and 3: Federal Identification andSocial Security NumberEnter your Federal Identification number if you have been as-signed one or your Social Security number if your business is asole proprietorship.

Line 4: Location NumberIf you operate more than one location registered in Massachusetts,you should number your locations consecutively for the purpose ofregistering and enter in this line the number of the location beingregistered. For example, if you have six locations and this FormTA-2 is for your third location, enter three in this line. Enter “N/A” inthis line if you are using Form TA-2 to register a previously regis-tered location for a tax which it was not previously collecting.

Note: Lines 5 through 16. Enter one letter or number per box. Donot write in the shaded areas.

Line 5: Legal NameEnter the name of the owner if this is a sole proprietorship, thename of the partnership, or the legal name as registered with theSecretary of State’s office if this is a corporation. Note: If you areregistering for the meals tax and your establishment serves alcoholicbeverages, the legal name recorded with the Massachusetts Alco-holic Beverage Control Commission (ABCC) must be entered here.(Also see line 41 of Form TA-1.)

Lines 6–10: Business Address and TelephoneNumberEnter the actual street address and the telephone number of yourmain location. Do not enter a P.O. box in this area. If you wish toenter a mailing address, you must do so on a Schedule TA-4. Ifyou have more than one location, you should enter the address ofyour principal location or headquarters here.

Line 11: Trade NameEnter the trade name of this location.

Lines 12 through 16: Location Address andTelephone NumberEnter the address and telephone number of this location in lines 12through 16.

Line 17: Registration Certificate Mailing AddressIf you are registering for sales tax, meals tax, or room occupancyexcise, you will be receiving a Certificate of Registration. Pleasecheck the box indicating where you want the certificate sent.

Line 18: Tax Form Mailing AddressPlease check the box indicating where you want your tax forms sent.If you want your forms sent somewhere other than your principalbusiness address or this location, please complete Schedule TA-4.

Line 19: Seasonal BusinessIf your business is not seasonal, check “no,” leave the rest of line19 blank and proceed to line 20.

If it is seasonal, check the months and partial months during whichyou conduct business. Answer this question separately for eachtax type. For example, if you operate a business that is seasonalunder one tax, but operates year-round under another, check all ofthe months during which you have business activity for each tax.

Line 20: Filing FrequencyMake the best estimate of the amount of tax you expect to collectannually for each tax type for which you are registering. For exam-ple, if you are registering for Sales/Use Tax on Goods and you ex-pect to have approximately $40,000 in taxable sales, your estimatedamount of sales tax collected would be $2,000 ($40,000 x .05). Yourestimates will determine the frequency with which you must file andremit the taxes you collect. If you cannot make an estimate, we willissue forms that must be filed on a quarterly basis for withholding andsales tax and on a monthly basis for meals tax and room occupancytax. If you are not registering to collect a tax, leave this item blank.

Line 21: Date You Were First Required toWithholdEnter the date you were or will be required to withhold taxes at thislocation as the organization type indicated in line 11 of Form TA-1.

Example:Jackie is opening a second hotel on Cape Cod. The hotel will beopen year-round, but the restaurant and souvenir shop in thehotel will only be open from May through September. Jackiemust check all of the boxes for withholding and room occupancytax, but only those under May through September for sales/useon goods and meals tax.

Example:Michael operates two supermarkets, one located in Boston andone in Pittsfield. He wishes to register each store separately forall of the taxes to be collected. He used a Form TA-1 to registerhis Pittsfield location. He is using a Form TA-2 to register hisBoston store. His Boston store contains a snack bar. Michaelemploys a staff of 24, so he must withhold from their wages. Hemust also pay a sales/use tax on non-food items he sells, aswell as a meals tax on items sold at the snack bar. He checksboxes A(1), B(1) and B(3) in line 1.






Resale Only

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✔

✔

19. Is this location seasonal? (See instructions) Yes No.If “yes,” check month(s) or partial month(s) business operates.

Check Month(s) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Withholding

Sales/Use on Goods

Sales/Use onTelecom.Services

Meals

Room Occupancy

✔

Line 22: Number of EmployeesEnter the number of people you employ in Massachusetts at thislocation.

Line 23: Date You Were First Required to CollectSales/Use Tax on GoodsEnter the date you were or will be required to collect sales/use taxon goods at this location as the organization type indicated in line 11of Form TA-1.

Line 24: Sales/Use Tax on Goods Registration FeeIf you are registering for sales/use tax on goods, enter the $10 feein line 24.

Note: If you are also registering for sales/use tax on telecommuni-cations services and/or meals tax, enter the $10 fee only in line 24and enter “None” in lines 26 and/or 32.

Line 25: Date You Were First Required to CollectSales/Use Tax on Telecommunications ServicesEnter the date you were or will be required to collect sales/use taxon telecommunications services at this location as the organizationtype indicated in line 11 of Form TA-1.

Line 26: Sales/Use Tax on TelecommunicationsServices Registration FeeIf you are registering only for sales/use tax on telecommunicationsservices enter the $10 fee in line 26.

Note: If you are currently registered as a vendor collecting sales/use tax on goods or meals at this location no fee is required. Enter"None” in line 26.

Line 27: Food and All Beverages ServedCheck all that apply.

Line 28: Operation of Vending MachinesCheck if you are registering a vending machine. If you operatemore than one vending machine at the same location, you need toregister that location only once. If you operate a vending machineat a location where you are also registered for collection of mealstax as a restaurant, you need to register the location only once.

Line 29: Date You Were First Required to CollectMeals TaxEnter the date you were or will be required to withhold taxes at thislocation as the organization type indicated in line 11 of Form TA-1.

Line 30: Liquor License HolderEnter the name and address of the liquor license holder for thislocation as recorded at the Massachusetts Alcoholic BeverageControl Commission (ABCC). This must be the same legal nameas you recorded on your Form TA-1. If the name of the managerappears on the liquor license, it must be entered in this item andidentified as “manager.”

Line 31: Restaurant or Bar Seating CapacityEnter the seating capacity of your restaurant or bar.

Line 32: Meals Tax Registration FeeIf you are registering for meals tax and you are not registering forsales/use tax on goods and/or telecommunications services, enterthe $10 fee in line 32.

If you are registering for meals tax and another sales/use tax, enterthe $10 fee only in line 24 or line 26 and enter “None” in line 32.

If you are registered for another sales or meals tax type, you arenot required to pay an additional $10 fee to register for meals tax.Enter “None” in line 32.

Line 33: Date You Were First Required to CollectRoom Occupancy ExciseEnter the date you were or will be required to collect room occu-pancy excise tax at this location as the organization type indicatedin line 11 of Form TA-1.

Line 34: Locality CodeEnter your locality code in line 34. A complete list of locality codesis provided on page 18. For example, if your business is located inFramingham, your locality code would be 100.

Line 35: Number of RoomsEnter the number of rooms you will be renting in your hotel, motelor lodging house.

16

Example:Anne is adding a gift shop to her hotel. She began employingpeople for the shop on May 1, 1996. Because she is alreadyregistered as a meals tax vendor, she does not have to pay anadditional $10.00 to become a sales tax vendor. The only linesAnne must fill out are 23 and 24. In line 24 she must write “None.”

Withholding Fee Entry21. Date you were first required to withhold 22. Enter number of employees





25. Date you were first required to collect 26. Enter fee of $10. No fee is required if you aresales/use tax on telecommunications now registered at this location to collect sales/use services at this location. tax on goods or meals tax.






Room Occupancy ¨ $



¨ $

Mo Day Yr

Mo Day Yr

Mo Day Yr


Mo Day Yr

00 55 00 11 9966

nn oo nn ee

Line 36: Room Occupancy Excise RegistrationFeeEnter $10 if you are registering as a room occupancy vendor.

Line 37: Date You Were First Required to PayUse TaxEnter the date you were or will be required to pay use tax as thetype of organization indicated in line 11 of Form TA-1.

Line 38: Total Fees for This LocationAdd lines 24 and 36; lines 26 and 36; or lines 32 and 36. This isthe total amount of fees due for this location. If you are also filing aForm TA-1 at this time, enter this amount in line 50 of that form. Ifyou are filing only a Form TA-2 at this time, make your check pay-able to the Commonwealth of Massachusetts and write your Fed-eral Identification number or Social Security number in the bottomleft corner.

SignatureNow that you have completed your Form TA-2, sign your name. Ifyou do not sign your form, we will be unable to accept it for proc-essing and will return it to you for signature.

Mail your completed Form TA-2 and any necessary attachments to:Massachusetts Department of RevenueData Integration BureauP.O. Box 7022Boston, MA 02204

Check page 14 to see if there are any schedules which must ac-company Form TA-2.

Who Must Sign Form TA-2?Form TA-2 must be signed by the owner, partner or officer of yourorganization. Form TA-2 can also be signed by someone else whohas a Power of Attorney that permits him or her to register a loca-tion with the Department of Revenue.

17

Example:Julie is opening a second hotel on Cape Cod. She began em-ploying people on May 1, 1996. She opened the hotel with itsrestaurant and gift shop to the public on May 30, 1996. Becauseshe will be paying withholding, sales/use, meals and room oc-cupancy taxes, Julie must complete lines 21 through 36. Shewill only have to pay one $10.00 fee to register as a hotel opera-tor and the $10.00 fee for sales/use on goods and meals taxregistration.

Withholding Fee Entry21. Date you were first required to withhold 22. Enter number of employees





25. Date you were first required to collect 26. Enter fee of $10. No fee is required if you aresales/use tax on telecommunications now registered at this location to collect sales/use services at this location. tax on goods or meals tax.






Room Occupancy ¨ $



¨ $

Mo Day Yr

Mo Day Yr

Mo Day Yr


Mo Day Yr

00 55 00 11 9966

00 55 3300 9966

00 55 3300 9966

00 55 3300 9966

8800

4400

1100 .. 0000

nn oo nn ee

110000

nn oo nn ee

33 55 11

1100 .. 0000

✔

18

Locality Codes for Massachusetts Cities and TownsEnter in line 45 (TA-1) or line 34 (TA-2) the locality code of your location. If your location is outside Massachusetts, enter “N/A” for notapplicable.

001 Abington 071 Danvers 141 Hudson 211 North Attleborough 281 Springfield002 Acton 072 Dartmouth 142 Hull 212 North Brookfield 282 Sterling003 Acushnet 073 Dedham 143 Huntington 213 North Reading 283 Stockbridge004 Adams 074 Deerfield 144 Ipswich 214 Northamptom 284 Stoneham005 Agawam 075 Dennis 145 Kingston 215 Northborough 285 Stoughton006 Alford 076 Dighton 146 Lakeville 216 Northbridge 286 Stow007 Amesbury 077 Douglas 147 Lancaster 217 Northfield 287 Sturbridge008 Amherst 078 Dover 148 Lanesborough 218 Norton 288 Sudbury009 Andover 079 Dracut 149 Lawrence 219 Norwell 289 Sunderland010 Arlington 080 Dudley 150 Lee 220 Norwood 290 Sutton011 Ashburnham 081 Dunstable 151 Leicester 221 Oak Bluffs 291 Swampscott012 Ashby 082 Duxbury 152 Lenox 222 Oakham 292 Swansea013 Ashfield 083 East Bridgewater 153 Leominster 223 Orange 293 Taunton014 Ashland 084 East Brookfield 154 Leverett 224 Orleans 294 Templeton015 Athol 085 East Longmeadow 155 Lexington 225 Otis 295 Tewksbury016 Attleboro 086 Eastham 156 Leyden 226 Oxford 296 Tisbury017 Auburn 087 Easthampton 157 Lincoln 227 Palmer 297 Tolland018 Avon 088 Easton 158 Littleton 228 Paxton 298 Topsfield019 Ayer 089 Edgartown 159 Longmeadow 229 Peabody 299 Townsend020 Barnstable 090 Egremont 160 Lowell 230 Pelham 300 Truro021 Barre 091 Erving 161 Ludlow 231 Pembroke 301 Tyngsborough022 Becket 092 Essex 162 Lunenburg 232 Pepperell 302 Tyringham023 Bedford 093 Everett 163 Lynn 233 Peru 303 Upton024 Belchertown 094 Fairhaven 164 Lynnfield 234 Petersham 304 Uxbridge025 Bellingham 095 Fall River 165 Malden 235 Phillipston 305 Wakefield026 Belmont 096 Falmouth 166 Manchester 236 Pittsfield 306 Wales027 Berkley 097 Fitchburg 167 Mansfield 237 Plainfield 307 Walpole028 Berlin 098 Florida 168 Marblehead 238 Plainville 308 Waltham029 Bernardston 099 Foxborough 169 Marion 239 Plymouth 309 Ware030 Beverly 100 Framingham 170 Marlborough 240 Plympton 310 Wareham031 Billerica 101 Franklin 171 Marshfield 241 Princeton 311 Warren032 Blackstone 102 Freetown 172 Mashpee 242 Provincetown 312 Warwick033 Blandford 103 Gardner 173 Mattapoisett 243 Quincy 313 Washington034 Bolton 104 Gay Head 174 Maynard 244 Randolph 314 Watertown035 Boston 105 Georgetown 175 Medfield 245 Raynham 315 Wayland036 Bourne 106 Gill 176 Medford 246 Reading 316 Webster037 Boxborough 107 Gloucester 177 Medway 247 Rehoboth 317 Wellesley038 Boxford 108 Goshen 178 Melrose 248 Revere 318 Wellfleet039 Boylston 109 Gosnold 179 Mendon 249 Richmond 319 Wendell040 Braintree 110 Grafton 180 Merrimac 250 Rochester 320 Wenham041 Brewster 111 Granby 181 Methuen 251 Rockland 321 West Boylston042 Bridgewater 112 Granville 182 Middleborough 252 Rockport 322 West Bridgewater043 Brimfield 113 Great Barrington 183 Middlefield 253 Rowe 323 West Brookfield044 Brockton 114 Greenfield 184 Middleton 254 Rowley 324 West Newbury045 Brookfield 115 Groton 185 Milford 255 Royalston 325 West Springfield046 Brookline 116 Groveland 186 Millbury 256 Russell 326 West Stockbridge047 Buckland 117 Hadley 187 Millis 257 Rutland 327 West Tisbury048 Burlington 118 Halifax 188 Millville 258 Salem 328 Westborough049 Cambridge 119 Hamilton 189 Milton 259 Salisbury 329 Westfield050 Canton 120 Hampden 190 Monroe 260 Sandisfield 330 Westford051 Carlisle 121 Hancock 191 Monson 261 Sandwich 331 Westhampton052 Carver 122 Hanover 192 Montague 262 Saugus 332 Westminster053 Charlemont 123 Hanson 193 Monterey 263 Savoy 333 Weston054 Charlton 124 Hardwick 194 Montgomery 264 Scituate 334 Westport055 Chatham 125 Harvard 195 Mount Washington 265 Seekonk 335 Westwood056 Chelmsford 126 Harwich 196 Nahant 266 Sharon 336 Weymouth057 Chelsea 127 Hatfield 197 Nantucket 267 Sheffield 337 Whately058 Cheshire 128 Haverhill 198 Natick 268 Shelburne 338 Whitman059 Chester 129 Hawley 199 Needham 269 Sherborn 339 Wilbraham060 Chesterfield 130 Heath 200 New Ashford 270 Shirley 340 Williamsburg061 Chicopee 131 Hingham 201 New Bedford 271 Shrewsbury 341 Williamstown062 Chilmark 132 Hinsdale 202 New Braintree 272 Shutesbury 342 Wilmington063 Clarksburg 133 Holbrook 203 New Marlborough 273 Somerset 343 Winchendon064 Clinton 134 Holden 204 New Salem 274 Somerville 344 Winchester065 Cohasset 135 Holland 205 Newbury 275 South Hadley 345 Windsor066 Colrain 136 Holliston 206 Newburyport 276 Southampton 346 Winthrop067 Concord 137 Holyoke 207 Newton 277 Southborough 347 Woburn068 Conway 138 Hopedale 208 Norfolk 278 Southbridge 348 Worcester069 Cummington 139 Hopkinton 209 North Adams 279 Southwick 349 Worthington070 Dalton 140 Hubbardston 210 North Andover 280 Spencer 350 Wrentham

351 Yarmouth

19

Effective Date Effective DateCity or Town (YY-MM-DD) Tax Rate City or Town (YY-MM-DD) Tax Rate

Local Room Occupancy Excise — By Effective DateThe cities and towns listed below have adopted the room occupancy excise local option at the rate shown. The date on which the townadopted the local option is also listed.

*Barnstable, Boxborough, Brewster, Cohasset, Dennis, Gardner, Milford, Nantucket and Northampton are listed more than once becausethey have changed the rate at which they impose the room occupancy local excise.

Acton 86-07-01 4.00%Amesbury 89-02-01 4.00%Amherst 88-07-01 4.00%Andover 86-07-01 4.00%Auburn 86-11-01 4.00%Barnstable* 86-07-01 2.00%Barnstable* 87-01-01 4.00%Bedford 86-07-01 4.00%Beverly 88-07-01 4.00%Bolton 90-04-01 2.00%Boston 85-08-01 4.00%Bourne 86-07-01 4.00%Boxborough* 86-09-01 2.00%Boxborough* 87-10-01 4.00%Braintree 86-07-01 4.00%Brewster* 87-01-01 2.00%Brewster* 88-01-01 4.00%Brimfield 90-10-01 4.00%Brockton 86-01-01 4.00%Brookline 86-01-01 4.00%Burlington 85-11-01 4.00%Cambridge 85-11-01 4.00%Charlemont 88-07-01 4.00%Chatham 88-07-01 4.00%Chelmsford 86-07-01 4.00%Chelsea 85-11-01 4.00%Chicopee 88-10-01 4.00%Cohasset* 88-07-01 4.00%Cohasset* 89-07-01 0.00%Concord 86-06-01 4.00%Danvers 87-07-01 4.00%Dartmouth 86-04-01 4.00%Dedham 86-12-01 4.00%Deerfield 89-07-01 4.00%Dennis* 86-07-01 2.30%Dennis* 87-04-01 4.00%Eastham 87-01-01 4.00%Edgartown 87-01-01 4.00%Essex 86-07-01 4.00%Fairhaven 95-09-01 4.00%Fall River 96-04-01 4.00%Falmouth 87-01-01 4.00%Foxborough 86-07-01 4.00%Framingham 87-01-01 4.00%Gardner* 92-01-01 2.00%Gardner* 93-01-01 4.00%

Gloucester 87-01-01 4.00%Great Barrington 90-07-01 4.00%Greenfield 89-07-01 4.00%Hadley 86-07-01 4.00%Hancock 90-01-01 4.00%Harwich 87-01-01 4.00%Hatfield 86-06-01 4.00%Haverhill 85-10-01 4.00%Holyoke 89-04-01 4.00%Hull 89-01-01 4.00%Kingston 86-08-01 4.00%Lakeville 95-02-01 4.00%Lanesborough 90-10-01 4.00%Lawrence 89-07-01 4.00%Lee 90-01-01 4.00%Lenox 90-01-01 4.00%Leominster 91-01-01 4.00%Lexington 86-02-01 4.00%Lowell 88-01-01 4.00%Lunenburg 86-07-01 4.00%Lynn 86-09-01 4.00%Malden 85-11-01 4.00%Mansfield 86-01-01 4.00%Marlborough 85-10-01 4.00%Marshfield 89-04-01 4.00%Mashpee 86-10-01 4.00%Methuen 89-04-01 4.00%Middleborough 88-04-01 4.00%Middleton 87-10-01 4.00%Milford* 88-10-01 2.00%Milford* 90-01-01 3.00%Milford* 91-01-01 4.00%Nantucket* 86-07-01 1.30%Nantucket* 88-10-01 4.00%Natick 85-11-01 4.00%Needham 86-10-01 4.00%New Ashford 93-10-01 4.00%New Bedford 90-07-01 4.00%Newburyport 89-10-01 4.00%Newton 85-11-01 4.00%North Andover 91-01-01 4.00%Northampton* 87-01-01 2.00%Northampton* 89-01-01 4.00%Northborough 86-09-01 4.00%Norwood 87-07-01 4.00%

20

Local Room Occupancy Excise — By Effective DateThe cities and towns listed below have adopted the room occupancy excise local option at the rate shown. The date on which the townadopted the local option is also listed.

*Orleans, Sturbridge and Westport are listed more than once because they have changed the rate at which they impose the room occupancylocal excise.

Oak Bluffs 89-01-01 4.00%Orleans* 87-04-01 2.00%Orleans* 88-04-01 4.00%Peabody 86-01-01 4.00%Pittsfield 90-07-01 4.00%Plainfield 89-10-01 4.00%Plainville 86-10-01 4.00%Plymouth 86-04-01 4.00%Provincetown 87-01-01 2.30%Randolph 86-06-01 4.00%Raynham 90-10-01 4.00%Reading 89-10-01 4.00%Revere 86-06-01 4.00%Rockland 88-07-01 4.00%Rockport 89-07-01 4.00%Salem 89-01-01 4.00%Salisbury 88-07-01 4.00%Sandwich 86-07-01 4.00%Saugus 86-04-01 4.00%Seekonk 89-07-01 4.00%Sharon 86-01-01 4.00%Sherborn 89-04-01 4.00%Shrewsbury 86-07-01 4.00%Somerset 85-12-01 4.00%Somerville 86-02-01 4.00%Southampton 86-01-01 4.00%Southborough 86-04-01 4.00%Springfield 89-07-01 4.00%Sterling 88-07-01 4.00%Stockbridge 96-01-01 4.00%Stoughton 92-10-01 4.00%Sturbridge* 86-07-01 1.30%Sturbridge* 87-04-01 2.60%Sturbridge* 90-07-01 4.00%Sutton 89-01-01 4.00%

Swampscott 89-04-01 4.00%Swansea 92-04-01 4.00%Taunton 89-07-01 4.00%Templeton 85-12-01 4.00%Tewksbury 86-07-01 4.00%Tisbury 86-10-01 4.00%Townsend 86-07-01 4.00%Truro 85-12-01 4.00%Tyngsborough 90-01-01 4.00%Wakefield 87-07-01 4.00%Walpole 87-07-01 4.00%Waltham 85-11-01 4.00%Wareham 86-09-01 4.00%Watertown 92-10-01 4.00%Wellesley 86-07-01 4.00%Wellfleet 86-07-01 4.00%West Boylston 86-01-01 4.00%West Springfield 89-04-01 4.00%West Stockbridge 94-04-01 4.00%Westborough 88-07-01 4.00%Westfield 86-05-01 4.00%Westford 87-07-01 4.00%Westminster 96-04-01 4.00%Westport* 94-07-01 2.00%Westport* 95-07-01 4.00%Westwood 90-10-01 4.00%Weymouth 91-04-01 4.00%Whately 89-07-01 4.00%Whitman 90-10-01 4.00%Wilbraham 89-07-01 4.00%Williamstown 90-10-01 4.00%Woburn 85-11-01 4.00%Worcester 86-04-01 4.00%Worthington 88-07-01 4.00%Wrentham 86-08-01 4.00%Yarmouth 86-07-01 4.00%

Effective Date Effective DateCity or Town (YY-MM-DD) Tax Rate City or Town (YY-MM-DD) Tax Rate

21

Agriculture, Forestry, andFishingCode0400 Agricultural production 0600 Agricultural services (except

veterinarians), forestry, hunting andtrapping

MiningMetal mining 1010 Iron ores 1070 Copper, lead and Zinc, gold and silver

ores 1098 Other metal mining 1150 Coal mining

Oil and gas extraction 1330 Crude petroleum, natural gas, and

natural gas liquids 1380 Oil and gas field services

Nonmetallic minerals (except fuels) 1430 Dimension, crushed and broken stone:

sand and gravel 1498 Other nonmetallic minerals, except

fuels

ConstructionGeneral building contractors andoperative builders 1510 General building contractors 1531 Operative builders 1600 Heavy construction contractors

Special trade contractors 1711 Plumbing, heating, and air conditioning 1731 Electrical work 1798 Other special trade contractors

ManufacturingFood and kindred products2010 Meat products 2020 Dairy products 2030 Preserved fruits and vegetables 2040 Grain mill products 2050 Bakery products 2060 Sugar and confectionery products 2081 Malt liquors and malt 2088 Alcoholic beverages, except malt

liquors and malt2089 Bottled soft drinks, and flavoring 2096 Other food and kindred products 2100 Tobacco manufactures

Textile mill products 2228 Weaving mills and textile finishing 2250 Knitting mills 2298 Other textile mill products

Apparel and other textile products 2315 Men’s and boys’ clothing 2345 Women’s and children’s clothing 2388 Hats, caps, millinery, fur goods and

other apparel and accessories 2390 Misc. fabricated textile products

Lumber and wood products2415 Logging camps and logging

contractors, sawmills and planing mills 2430 Millwork, plywood, and related

products 2498 Other wood products including wood

buildings and mobile homes 2500 Furniture and fixtures

Paper and allied products 2625 Pulp, paper and board mills 2699 Other paper products

Printing and publishing 2710 Newspapers 2720 Periodicals 2735 Books, greeting cards. and misc.

publishing

2799 Commercial and other printing and printingtrade services

Chemicals and allied products 2815 Industrial chemicals, plastics materials and

synthetics 2820 Drugs2840 Soap cleaners, and toilet products2850 Paints and allied products2898 Agricultural and other chemical products

Petroleum refining and relatedindustries (including those integratedwith extraction)2910 Petroleum refining (including those

integrated with extraction)2998 Other petroleum and coal products

Rubber and misc. plastics products3050 Rubber products: plastics footwear, hose

and belting3070 Misc. plastic products

Leather and leather products3140 Footwear, except rubber3198 Other leather and leather products

Stone, clay and glass products3225 Glass products3240 Cement, hydraulic3270 Concrete, gypsum and plaster products3298 Other nonmetallic mineral products

Primary metal industries3370 Ferrous metal industries: misc. primary

metal products3380 Nonferrous metal industries

Fabricated metal products3410 Metal cans and shipping containers3428 Cutlery, hand tools and hardware; screw

machine products, bolts, and similarproducts

3430 Plumbing and heating except electric andwarm air

3440 Fabricated structural metal products3460 Metal forgings and stampings3470 Coating, engraving and allied services3480 Ordinance and accessories except vehicles

and guided missiles3490 Misc. fabricated metal products

Machinery, except electrical3520 Farm machinery3530 Construction, mining and materials

handling3540 Metalworking machinery3550 Special industry machinery, except

metalworking3560 General industrial machinery3570 Office, computing and accounting

machines3598 Engines and turbines, service industry

machinery

Electrical and electronic equipment3630 Household appliances3665 Radio, television and communication

equipment3670 Electronic components and accessories3698 Other electric equipment

Transportation equipment3710 Motor vehicles and equipment3725 Aircraft, guided missiles and parts3730 Ship and boat building and repairing3798 Other transportation equipment

Instruments and related products3815 Scientific instruments and measuring

devices, watches and clocks3845 Optical, medical and ophthalmic goods3860 Photographic equipment and supplies3998 Other manufacturing products

Transportation and PublicUtilitiesTransportation4000 Railroad transportation4100 Local and interurban passenger transit4200 Trucking and warehousing4400 Water transportation4500 Transportation by air4600 Pipe lines, except natural gas4700 Other transportation services

Communication 4825 Telephone, telegraph and other

communication services 4830 Radio and television broadcasting

Electric, gas, and sanitary services4910 Electric services4920 Gas production and distribution4930 Combination utility services4990 Water supply and other sanitary services

Wholesale Trade Durable 5008 Machinery, equipment and supplies 5010 Motor vehicles and automotive equipment 5020 Furniture and home furnishings 5030 Lumber and construction materials 5040 Sporting, recreational, photographic and

hobby goods, toys and supplies 5050 Metals and minerals, except petroleum and

scrap 5060 Electrical goods 5070 Hardware plumbing and heating equipment5098 Other durable goods

Nondurable5110 Paper and paper products 5129 Drugs, drug proprietaries, and druggists’

sundries 5130 Apparel, piece goods and notions 5140 Groceries and related products 5150 Farm-product raw materials 5160 Chemicals and allied products 5170 Petroleum and petroleum products 5180 Alcoholic beverages 5190 Misc. nondurable goods

Retail TradeBuilding materials, garden supply andmobile home dealers 5220 Building materials dealers 5251 Hardware stores 5265 Garden supplies and mobile home dealers 5300 General merchandise stores 5410 Grocery stores 5490 Other food stores

Automotive dealers and servicestations 5515 Motor vehicle dealers 5541 Gasoline service stations 5598 Other automotive dealers 5600 Apparel and accessory stores 5700 Furniture and home furnishings stores 5800 Eating and drinking places

Miscellaneous retail stores5912 Drug stores and proprietary stores5921 Liquor stores5995 Other misc. retail stores

Finance, Insurance and RealEstate Banking6030 Mutual savings banks 6060 Bank holding companies 6090 Banks, except mutual savings banks and

bank holding companies

Credit agencies other than banks6120 Savings and loan associations6140 Personal credit institutions

6150 Business credit institutions6199 Other credit agencies

Security, commodity brokers andservices 6210 Security brokers, dealers and floatation

companies 6299 Commodity contract brokers and dealers,

security and commodity exchanges, andallied services

Insurance6355 Life insurance 6356 Mutual insurance, except life or marine and

certain fire flood insurance companies 6359 Other insurance companies 6411 Insurance agents, brokers, and services

Real estate6511 Real estate operators (except developers)

and lessors of buildings6516 Lessors of mining, oil, and similar property6518 Lessors of railroad property and other real

property6530 Condominium management and

cooperative housing associations 6550 Subdividers and developers 6599 Other real estate

Holding and other investmentcompanies, except bank holdingcompanies 6742 Regulated investment companies 6743 Real estate investment trusts 6744 Small business investment companies 6749 Holding and other investment companies

except bank holding companies

Services7000 Hotels and other lodging places7200 Personal services

Business services7310 Advertising7370 Computer and data processing services7389 Business services, except advertising7394 Equipment rental and leasing services7396 Other business services

Auto repair; misc. repair services 7500 Auto repair services 7600 Misc. repair services

Amusement and recreational services 7812 Motion picture production, distribution and

services7830 Motion picture theaters7900 Amusement and recreation services except

motion pictures

Other services8015 Offices of physicians8021 Offices of dentists8040 Offices of other health practitioners8050 Nursing and personal care facilities8060 Hospitals8071 Medical laboratories8099 Other medical services8111 Legal services8200 Educational services8300 Social services8600 Membership organizations8911 Architectural and engineering services8930 Accounting, auditing, and bookkeeping8980 Miscellaneous services (including

veterinarians)

These industry titles and definitions arebased, in general, on the Standard In-dustrial Classification System authorizedby the U.S. Office of Management andBudget. The system is intended toclassify enterprises by type of activityin which they are engaged.

Business Activity Code Chart

22

ResourcesFollowing is a list of the various forms and schedules that pertain to trustee taxes, as well as useful publications on various state tax issues.Copies of forms and publications are available by calling DOR’s main information lines at (617) 887-MDOR or at 1-800-392-6089 or by usingDOR’s website (www.state.ma.us/dor). Several documents also are available through DOR’s Fax on Demand system. These titles are fol-lowed by a fax code. Please call (617) 887-1900 using the handset and the keypad on your fax machine and enter the code number indi-cated for the appropriate document.

Form Number Title/Fax Code

ST-1 Sales and Use Tax Registration Certificate

ST-2 Certificate of Exemption

ST-3 5% Sales Tax Schedule/403

ST-4 Sales Tax Resale Certificate

ST-5 Sales Tax Exempt Purchaser Certificate

ST-5C Contractor’s Sales Tax Exempt Purchase Certificate

ST-6 Aircraft, Boat, Recreation or Snow Vehicle — Certificate ofPayment of Sales or Use Tax/406

ST-6E Aircraft or Motorboat Claim of Exemption from Sales or UseTax/416

ST-7R Motor Vehicle Certificate of Payment of Sales or Use Tax/407

ST-9 Monthly Sales and Use Tax Return

ST-9A Annual Sales and Use Tax Return

ST-9-AM Amended Sales and Use Tax Return/391

ST-9MP Monthly Deposit Payment of Sales and Use Tax

ST-9Q Quarterly Sales and Use Tax Return

ST-9QR Quarterly Sales and Use Tax Return for Vendors on MonthlyPayment System

ST-10 Business Use Tax Return/370

ST-11 Individual Use Tax Return/371

ST-12 Exempt Use Certificate/412

ST-12B Sales Tax Exempt Certificate for Sales of Certain MedicalEquipment

ST-12EC Exempt Container Certificate/395

ST-13 Small Business Energy Exemption Certificate/413

ST-BDR Claim for Bad Debt Reimbursement/378

ST-BDR-MEALS Claim for Bad Debt Reimbursement/379

MT-1 Meals and All Beverages Sales Tax Registration

ST-MAB-4 Sales Tax on Meals, Prepared Food and All Beverages Return

ST-MAB-AM Amended Sales Tax on Meals, Prepared Food and AllBeverages Return/392

MAB-MP Monthly Deposit Payment of Sales Tax on Meals andAll Beverages

MAB-QR Quarterly Sales Tax on Meals, Prepared Food and All Beverages Return for Vendors on Monthly Payment System

STS-Q Quarterly Sales/Use Tax on Services Return

STS Monthly Sales/Use Tax on Services Return

STS-MP Monthly Deposit Payment of Sales/Use Tax on Services

STS-QR Quarterly Sales/Use Tax on Services Return for Vendors onMonthly Payment System

TA-1 Massachusetts Trustee Tax Application for Registration/314

TA-2 Application for Additional Registration/315

Publications

A Guide to the Department of Revenue: Your Taxpayer Bill of Rights/3005 (22 pages)

A Guide to Filing Your Massachusetts Income Taxes/3010

A Guide to Withholding of Taxes on Wages/3007 (14 pages)

Should You Be Paying Estimated Taxes?/3008 (4 pages)

A Guide to Sales and Use Tax/3009 (18 pages)

Should You Be Paying Use Tax? (4 pages)

A Guide to Estate Taxes/3011 (14 pages)

Small Business Packet contains registration materials, tax information, sample formsand information from other state agencies, and is available by calling DOR’s CustomerService Bureau at (617) 887-6100.

Taxpayer Advisory Bulletin is published quarterly with updates on legislative, legaland Departmental decisions and is available at most libraries or by calling DOR’sPublishing Services Office at (617) 626-2800.*

MASSTAX Guide contains five volumes covering all state taxes and DOR adminis-trative procedures; it is available for purchase through West Publishing Company(1-800-328-9352) or for reference at many law libraries and at the State HouseLibrary.

DOR Regulations, Technical Information Releases (TIRs), Directives and Rulings areprepared on general tax issues as well as specific taxpayer inquiries and are pub-lished in the MASSTAX Guide or are available by calling DOR’s Rulings and Regu-lations Bureau at (617) 626-3250.*

*To receive copies by Fax on Demand, please call (617) 887-1900 for a completemenu of these documents.

Where to Get Help & FormsThe Customer Service Bureau (CSB) is available to answer your questions about Massachusetts sales/use, meals, room occupancy and withholding taxes. CSB also provides information regarding corpo-ration excise and individual income taxes. If you have any questions about completing the registrationforms in this booklet which are not answered in the instructions, please call us or visit one of the districtoffices listed on this page. These offices are open Monday through Friday from 8:45 a.m. to 5:00 p.m.

Other state and federal agencies are also ready to help you in running your business. Below is alisting describing the type of assistance each offers. We encourage you to take advantage of theirservices.

For guidance on running your businessDepartment of Employment and TrainingRevenue Service Information (617) 626-5075Customer ServiceFor assistance in finding employees.

Office of the Attorney GeneralDivision of Fair Labor and Business Practice (617) 727-2200For Massachusetts wage and hour laws.

U.S. Small Business Administration (SBA)General Information (617) 565-5590Service Corps of Retired Executives (SCORE) (617) 565-5591SCORE workshop presents advice and suggestions to persons planning new businesses, or who are looking forassistance in the operation of new businesses.

Economic Development Division (617) 565-5580For loan guaranty programs.

U.S. Department of LaborWage and Hour Division (617) 565-2095For U.S. wage and hour laws.

Occupational Safety and Health Administration (617) 565-9860For health and safety requirements.

Internal Revenue ServiceTax Forms 1-800-829-3676

For Toll-free Information 1-800-392-6089

☎DOR Telephone Numbers in Boston — Area Code 617

Corporation Excise Tax 887-MDOR Sales/Use Tax 887-MDOR

Income Tax 887-MDOR Withholding Tax 887-MDOR

Meals and Room Occupancy Taxes 887-MDOR Teletypewriter (TTY) 887-6140

☛ Vision-impaired taxpayers are welcome to make an appointment at any DOR office listed on thispage to receive assistance in preparing their tax forms.

DOR Taxpayer AssistanceLocations

100 Cambridge StreetBoston 02204(617) 887-MDOR

218 S. Main StreetFall River 02721(508) 678-2844

1019 Iyanough RoadHyannis 02601(508) 771-2414

333 East StreetPittsfield 01201(413) 499-2206

436 Dwight StreetSpringfield 01103(413) 784-1000

40 Southbridge StreetWorcester 01608(508) 792-7300

From the CommissionerDear Taxpayer:

Whether you are registering as a new business or expanding your current one,this TA-1 booklet explains your responsibilities for collecting the Common-wealth’s “trustee taxes” and contains the forms you need to register with theDepartment of Revenue (DOR).

Trustee taxes — which include sales/use, meals, withholding and roomoccupancy — are so-named because employees and customers are entrust-ing businesses to collect and to remit these taxes to the Commonwealth.

In addition to paying over trustee taxes, DOR also depends on you to complywith trustee tax reporting obligations, such as submitting quarterly informationon wages paid to your employees. As a further step to improve the Common-wealth’s wage reporting system, legislation now requires employers to reportto DOR all newly hired employees, as well as personnel returning to thepayroll, within two weeks of an employee’s first day on the job. While werecognize that these reporting requirements pose certain administrativecosts, your cooperation in supplying this information prevents fraud in manystate programs, including Welfare, Medicaid, unemployment compensationand workers’ compensation and helps DOR enforce child support orders.

In its ongoing effort to ease the burden on small businesses, the Departmenthas developed a program to accept trustee tax payments and returns throughElectronic Funds Transfer (EFT) and Telefile, as well as a diskette filing pro-gram for submitting quarterly wage reports. These technological innovationseliminate the need for filing paper returns, reduce the time and expenseinvolved in generating and handling checks and allow for quicker and moreaccurate reporting of tax information. For more information about EFT andTelefile, call DOR’s EFT Unit at (617) 887-5020; small businesses interestedin participating in diskette filing should call DOR’s Magnetic Media SupportGroup at (617) 887-5030 for a complimentary software package.

Voluntary compliance is the cornerstone of our tax system, and getting tax-payers the information they need is one of the most important ways DORhelps people fulfill their responsibilities on time and in full. Thank you for yourcooperation and support, and best wishes in all of your business endeavors.

Sincerely,

Mitchell AdamsCommissioner of Revenue

ContentsGeneral Information 2

Specific Information for Each Tax 4

Withholding Tax 4

Filing Schedule 4

Sales/Use Tax on Goods andTelecommunications Services 5

Filing Schedule 6

Sales Tax on Meals and All Beverages (Meals Tax) 7

Filing Schedule 8

Room Occupancy Excise 8

Filing Schedule 9

Chapter 180 Organizations SellingAlcoholic Beverages 9

Use Tax Purchaser 9

Line by Line Instructions forForm TA-1 10

Line by Line Instructions forForm TA-2 14

Locality Codes 18

Local Room Occupancy Excise 19

Principal Business Activity Codes 21

Resources 22

Where to Get Help insideback cover

Massachusetts

Department of

Revenue

Boston, Massachusetts 02204

27M 3/97 D697B10

BULK RATEU.S. POSTAGEPAIDCOMMONWEALTH OFMASSACHUSETTS

Documents

Massachusetts Trustee Tax Form TA-1