Massachusetts Amends Definition of Retail Sale

The definition of “sale at retail” or “retail sale” has been amended to include a provision regarding the scenario of when tangible personal property is physically delivered by an owner, to the ultimate purchaser in Massachusetts, or to any person for redelivery to the purchaser (i.e. drop shipment), the deliverer shall be deemed the vendor of the property. Therefore, even when vendors are not doing business in Massachusetts, but they are using distributors who are engaged in business in the commonwealth to perform drop shipments in Massachusetts, the distributor will be subject to sales tax on the sales of tangible personal property and should include the retail selling price in its gross receipts, regardless of any contrary statutory or contractual terms concerning the passage of title. (Ch. 262 (H.B. 4744), Laws 2004, effective August 9, 2004)

Posted on September 20, 2004