Massachusetts House Bill H3097

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Relative to the bundled cell phone taxation

Impact

The implementation of H3097 would have significant implications for consumers and vendors in the mobile telecommunications market. By clarifying that sales tax applies to the device portion of bundled offers, this bill could alter pricing structures for customers purchasing mobile phones in conjunction with service plans. Additionally, it aims to prevent potential misunderstandings regarding tax liabilities for vendors selling these bundled packages, thereby promoting clarity and consistency in tax practices across the state.

Summary

House Bill 3097 aims to revise the existing sales tax regulations specifically related to mobile telecommunications devices sold as part of bundled service contracts. The amendment to chapter 64H of the General Laws introduces a new provision that clarifies that the tax should be imposed on the sales price of the mobile telecommunications device itself, rather than on the service included in the bundled offering. This adjustment seeks to delineate how sales tax is applied in light of evolving mobile service arrangements, reflecting the growing trend of bundling devices with monthly telecommunications services.

Contention

One of the notable points of contention surrounding this bill may revolve around the economic implications for consumers and businesses. Some might argue that applying sales tax to the device could lead to increased upfront costs for consumers purchasing mobile smartphones, potentially affecting affordability in the competitive market. Conversely, proponents of the bill may assert that the change is necessary to align tax policies with modern sales practices, removing ambiguities that could hinder fair taxation and compliance among sellers of telecommunications services.