Massachusetts Updates Small Business Sales Tax Exemption Process for Electricity
The Massachusetts Department of Revenue (“MA DOR”) has updated its process for companies that claim a small business exemption from sales tax on their electricity bill (formerly the Form ST-13). The Form ST-13 has been replaced by the Small Business Energy Exemption (“Form SBE”) which will be effective for two years.
What does this mean for you?
- Customers previously eligible for the Massachusetts ST-13 exemption must register their exemption status on the MA DOR’s website by March 31, 2019
- Customers must file this form directly with their utility AND supplier by March 31, 2019. Failure to do so will result in charges for sales tax
- Customers must re-file for the Form SBE every two years
How can you register for the Form SBE?
- Customers register for the Form SBE on the MA DOR’s website at: https://mtc.dor.state.ma.us/mtc/_/
What happens if applicable customers do not do this?
- Your utility and supplier will be required to add sales tax to the customer’s monthly bill.
Who is affected?
Any Massachusetts customers that were eligible for the ST-13 exemption (meets all of the criteria below):
- Gross income less than $1,000,000 in the prior year and anticipated for the current year;
- 5 or less full-time employees; and
- Energy must only be used by the qualifying business.
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