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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted:	February 23, 2015 08:40 AM
From:	Representative Mark Longietti
To:	All House members
Subject:	Legislation Raising the Threshold for Estimated Sales Tax Returns from $25,000 to $100,000

I the near future I plan to re-introduce House Bill 1396, legislation to raise the threshold for prepayment estimates for sales tax filings in order to reduce the burden on small businesses. Act 85 of 2012 allows a business with a prepayment obligation for sales use and hotel occupancy tax to use an alternate prepayment calculation method if the company had a tax liability above $25,000 and under $100,000 for the third quarter of the preceding year. Now these companies may make a prepayment equal to 50 percent of the actual tax liability for the same month of the previous year, or they may make a prepayment of at least 50 percent of the tax liability for the current period. The $25,000 threshold is too low and it affects many small businesses which are unduly burdened by the reporting requirements. Therefore, my legislation would raise the threshold for third quarter filings from $25,000 to $100,000. I believe we must find ways to ease the burdens on small businesses that are so vital to the economic vitality of the commonwealth.

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