Governor Deval Patrick's Budget Recommendation - House 2 Fiscal Year 2013

Governor's Budget Recommendation FY 2013

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Exemptions for Specified Uses of Products/Services


Fiscal Year 2013 Resource Summary (in Millions)
TAX EXPENDITURE FY2011 FY2012 FY2013
Exemptions for Specified Uses of Products/Services 1,018.3 1,068.4 1,110.4

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item description amount
Exemptions for Specified Uses of Products/Services 1,110.4
3.401 Exemption for Electricity
Residential electricity, electricity purchased by businesses with five or fewer employees, and electricity purchased for qualified industrial use is exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(i) and (qq)
Estimate:  $306.4
 
306.4
3.402 Exemption for Fuel Used for Heating Purposes
Residential heating fuel, heating fuel purchased by businesses with five or fewer employees, and heating fuel purchased for qualified industrial use is exempt from sales tax.

Comment: This estimate is based on purchases of heating oil only; natural gas is included in item 3.403.

Origin:  M.G.L. c. 64H, S. 6(j) and (qq)
Estimate:  $84.2
 
84.2
3.403 Exemption for Piped and Bottled Gas
Residential gas, gas purchased by businesses with five or fewer employees, and gas purchased for qualified industrial use is exempt from sales tax.

Comment: Estimate is for piped gas only.

Origin:  M.G.L. c. 64H, S. 6(i) and (qq)
Estimate:  $180.2
 
180.2
3.404 Exemption for Steam
Residential steam, steam purchased by businesses with five or fewer employees, and steam purchased for qualified industrial use are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(i) and (qq)
Estimate:  $14.4
 
14.4
3.405 Exemption for Certain Energy Conservation Equipment
Equipment for a solar, wind or heat pump system used as a primary or auxiliary energy source in a principal residence is exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(dd)
Estimate:  N.A.
 
N.A.
3.406 Exemption for Funeral Items
Coffins, caskets, and other funeral items are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(n)
Estimate:  $16.2
 
16.2
3.407 Exemption for a Motor Vehicle for a Paraplegic
A motor vehicle owned and registered for the personal use of a paraplegic is exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(u)
Estimate:  $1.3
 
1.3
3.408 Exemption for Textbooks
Textbooks and other books required for instruction in educational institutions are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(m)
Estimate:  $26.0
 
26.0
3.409 Exemption for Books Used for Religious Worship
Bibles, prayer books and other books used for religious worship are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(m)
Estimate:  N.A.
 
N.A.
3.410 Exemption for Containers
Most containers are exempt from sales tax. These include sales of empty returnable and non-returnable containers to be filled and resold, containers the contents of which are exempt from the sales tax, and returnable containers when sold with the contents or resold for refilling.

Origin:  M.G.L. c. 64H, S. 6(q)
Estimate:  $157.7
 
157.7
3.411 Exemption for Certain Sales by Typographers, Compositors, Color Separators
Sales by typographers, compositors or color separators of composed type, film positives and negatives and reproduction proofs, or transfers of such items to a printer, publisher, or manufacturer of folding boxes for use in printing, are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(gg)
Estimate:  N.A.
 
N.A.
3.412 Exemption for Sales of Building Materials and Supplies to be Used in Connection with Certain Construction Contracts
Materials and supplies used in connection with construction contracts with the United States and the Commonwealth of Massachusetts, or any of its subdivisions are tax exempt where the construction is for public purposes. Materials and supplies used in connection with construction contracts with a tax-exempt organization are tax exempt where the construction is to be used exclusively in carrying out the organization's charitable purpose. The exemption includes rentals of equipment as well.

Origin:  M.G.L. c. 64H, S. 6(f)
Estimate:  $222.9
 
222.9
3.417 Exemption for Commuter Boats
Vessels, materials, tools, repair and spare parts used exclusively to provide scheduled commuter passenger service are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(pp)
Estimate:  N.A.
 
N.A.
3.418 Exemption for Fuels, Supplies and Repairs for Vessels Engaged in Interstate or Foreign Commerce
Fuels, supplies and repairs for vessels engaged in interstate or foreign commerce are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(o)
Estimate:  $0.7
 
0.7
3.419 Exemption for Fuel Used in Operating Aircraft and Railroads
Fuel used in operating aircraft and railroads is exempt from sales tax.

Comment: At a community's option, kero-jet fuel may be subject to a local tax at of 5% of average price or $0.05 per gallon; whichever is higher.

Origin:  M.G.L. c. 64H, S. 6(j)
Estimate:  $59.4
 
59.4
3.420 Exemption for Sales of Certain New or Used Buses
New and used buses that provide scheduled intra-city local service and are used by common carriers certified by the Department of Telecommunications and Energy are exempt from sales tax. The exemption includes replacement parts, materials and tools used to maintain or repair these buses.

Origin:  M.G.L. c. 64H, S. 6(aa)
Estimate:  N.A.
 
N.A.
3.421 Exemption for Films
Motion picture films for commercial exhibition are exempt from sales tax.

Origin:  M.G.L. c. 64H, S. 6(m)
Estimate:  N.A.
 
N.A.
3.422 Exemption for Telephone Services
Sales of residential telecommunications services of up to $30 per month are exempt from sales tax.

Comment: Telegraph services are also exempt, but are not included in this estimate.

Origin:  M.G.L. c. 64H, S. 6(i)
Estimate:  $41.1
 
41.1

Key:

ORIGIN  
M.G.L. Massachusetts General Laws
ESTIMATES All estimates are in $ millions.


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