Tax & Accounting Blog

Massachusetts Proposes Lower State Tax

Indirect Tax, ONESOURCE, Sales and Use Tax January 25, 2013

diver Governor Patrick of Massachusetts has set his sights on lowering the state sales tax by a generous 1.75% – from the current 6.25% down to 4.5%.  Currently, this reduction is just a proposal by the Governor, but should it come to fruition, businesses in neighboring Rhode Island have a lot to be concerned about.  Shoppers on the border may opt to take their money to Massachusetts instead of paying the 7.0% Rhode Island state sales tax.  This news has put Rhode Islands’ Governor on alert, forcing him to consider his options, including a 1.0% reduction to his own state sales tax as he did in the 2012 budget.