Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S1940 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 741 FILED ON: 1/14/2025
3	3	SENATE . . . . . . . . . . . . . . No. 1940
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Cynthia Stone Creem
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to a local option excise on the sale of alcoholic beverages for municipal
13	13	substance abuse prevention and public health programs.
14	14	_______________
15	15	PETITION OF:
16	16	NAME:DISTRICT/ADDRESS :Cynthia Stone CreemNorfolk and Middlesex 1 of 5
17	17	SENATE DOCKET, NO. 741 FILED ON: 1/14/2025
18	18	SENATE . . . . . . . . . . . . . . No. 1940
19	19	By Ms. Creem, a petition (accompanied by bill, Senate, No. 1940) of Cynthia Stone Creem for
20	20	legislation relative to a local option excise on the sale of alcoholic beverages for municipal
21	21	substance abuse prevention and public health programs. Revenue.
22	22	[SIMILAR MATTER FILED IN PREVIOUS SESSION
23	23	SEE SENATE, NO. 1773 OF 2023-2024.]
24	24	The Commonwealth of Massachusetts
25	25	_______________
26	26	In the One Hundred and Ninety-Fourth General Court
27	27	(2025-2026)
28	28	_______________
29	29	An Act relative to a local option excise on the sale of alcoholic beverages for municipal
30	30	substance abuse prevention and public health programs.
31	31	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
32	32	of the same, as follows:
33	33	1 SECTION 1. The General Laws are hereby amended by inserting after Chapter 64N the
34	34	2following chapter:-
35	35	3 Chapter 64O LOCAL OPTION ALCOHOLIC BEVERAGES EXCISE FOR
36	36	4MUNICIPAL SUBSTANCE ABUSE PREVENTION AND PUBLIC HEALTH PROGRAMS
37	37	5 Section 1. As used in this chapter, words shall have the meaning assigned to them in
38	38	6paragraph (h) of section 6 of chapter 64H except as provided in this section: 2 of 5
39	39	7 “Restaurant”, the same meaning as in in paragraph (h) of section 6 of chapter 64H, except
40	40	8that beverages sold in unopened original containers or packages when sold as a unit having a
41	41	9capacity of at least twenty-six fluid ounces shall be subject to the excise.
42	42	10 “Sale”, a sale of meals by a restaurant for any purpose other than resale in the regular
43	43	11course of business.
44	44	12 Section 2. (a) A city or town which accepts this section in the manner provided in section
45	45	134 of chapter 4 may impose a local sales tax upon i) the sale at retail of alcoholic beverages not to
46	46	14be drunk on the premises originating within the city or town by a vendor at a rate of up to 2.00
47	47	15percent of the gross receipts of the vendor from the sale at retail of alcoholic beverages not to be
48	48	16drunk on the premises and ii) on the alcoholic beverages portion of a sale of restaurant meals
49	49	17originating within the city or town by a vendor at a rate of up to 2.00 percent of the gross receipts
50	50	18of the vendor from the alcoholic beverages portion of the sale of restaurant meals.
51	51	19 No excise shall be imposed if the sale is exempt under section 6 of chapter 64H except
52	52	20shall be imposed on the sale of tangible personal property under Chapter 138.
53	53	21 The vendor shall pay the local sales tax imposed under this section to the commissioner
54	54	22at the same time and in the same manner as the sales tax due to the commonwealth or as
55	55	23otherwise determined by the commissioner.
56	56	24 (b) All sums received by the commissioner under this section shall, at least quarterly, be
57	57	25distributed, credited and paid by the state treasurer upon certification of the commissioner to
58	58	26each city or town that has accepted this section in proportion to the amount of the sums received
59	59	27from the sale at retail of alcoholic beverages not to be drunk on the premises and sales of
60	60	28restaurant meals in that city or town. 3 of 5
61	61	29 Any city or town seeking to dispute the commissioner’s calculation of its distribution
62	62	30under this subsection shall notify the commissioner, in writing, not later than 1 year from the
63	63	31date the tax was distributed by the commissioner to the city or town.
64	64	32 (c) This section shall take effect in a municipality on the first day of the calendar quarter
65	65	33following 30 days after its acceptance by the municipality or on the first day of a later calendar
66	66	34quarter that the city or town may designate.
67	67	35 (d) Notwithstanding any provisions in section 21 of chapter 62C to the contrary, the
68	68	36commissioner may make available to cities and towns any information necessary for
69	69	37administration of the excise imposed by this section including, but not limited to, a report of the
70	70	38amount of local option sales tax on alcoholic beverages collected in the aggregate by each city or
71	71	39town under this section in the preceding fiscal year, and the identification of each individual
72	72	40vendor collecting local option sales tax on alcoholic beverages under this chapter.
73	73	41 Section 3. Except as provided herein, a sale at retail of an alcoholic beverage not to be
74	74	42drunk on the premises or a sale of an alcoholic beverage by a restaurant shall be sourced to the
75	75	43business location of the vendor if (1) the alcoholic beverage is provided to or received by the
76	76	44purchaser at the business location of the vendor or (2) if the alcoholic beverage is delivered by
77	77	45the vendor to a customer, regardless of the location of the customer.
78	78	46 A vendor with multiple business locations in the commonwealth shall separately report
79	79	47sales sourced to each location in a manner prescribed by the commissioner. Restaurant meal
80	80	48delivery companies that purchase meals for resale must source their sales to the delivery location
81	81	49indicated by instructions for delivery to the purchaser and shall separately report sales by
82	82	50municipality in a manner prescribed by the commissioner. The commissioner may also adopt by 4 of 5
83	83	51rule or regulation destination sourcing and reporting rules for caterers or other vendors with a
84	84	52high volume of delivered meals, as the commissioner may determine, in order to mitigate any
85	85	53anti-competitive impact of the local meals tax.
86	86	54 Section 4. Reimbursement for the tax imposed by this chapter shall be paid by the
87	87	55purchaser to the vendor, and each vendor in the commonwealth shall add to the sales price and
88	88	56shall collect from the purchaser the full amount of the tax imposed by this chapter and such tax
89	89	57shall be a debt from the purchaser to the vendor, when so added to the sales price, and shall be
90	90	58recoverable at law in the same manner as other debts.
91	91	59 Section 5. Upon each sale at retail of alcoholic beverages not to be drunk on the premises
92	92	60and upon each sale of a meal by a restaurant taxable under this chapter, the amount of tax
93	93	61collected by the vendor from the purchaser shall be stated and charged separately from the sales
94	94	62price and shown separately on any record thereof at the time the sale is made or on any evidence
95	95	63of sale issued or used by the vendor, but in the instance of the sale of alcoholic beverages for on
96	96	64premises consumption, the tax collected need not be stated separately.
97	97	65 Section 6. Every person who fails to pay to the commissioner any sums required by this
98	98	66chapter shall be personally and individually liable therefor to the commonwealth. The term
99	99	67“person”, as used in this section, includes an officer or employee of a corporation, or a member
100	100	68or employee of a partnership or limited liability company, who as an officer, employee or
101	101	69member is under a duty to pay over the taxes imposed by this chapter.
102	102	70 Section 7. Notwithstanding the provisions of section 53 of chapter 44 or any other
103	103	71general or special law to the contrary, a city or town that accepts section 2 shall establish a
104	104	72separate account to be known as the Municipal Substance Abuse Prevention and Public Health 5 of 5
105	105	73Fund of which the municipal treasurer shall be the custodian. The authority to approve
106	106	74expenditures from the fund shall be limited to the legislative body and the municipal treasurer
107	107	75shall pay such expenses in accordance with chapter 41.
108	108	76 All monies received from the excise imposed under section 2 shall be deposited in the
109	109	77fund. The expenditure of revenues from the fund shall be for the purpose of substance abuse
110	110	78prevention, protecting the public health and other law.