Massachusetts has recently enacted legislature that increased the general sales and use tax rate from 5 to 6.25 percent, effective August 1, 2009. The Commissioner of Revenue may adopt reasonable transition rules to apply the increased sales and use tax rate to situations including but not limited to 1) the purchase of building materials and supplies to be used in construction, reconstruction, alternation, remolding, or repair of any building or structure as part of a contract entered into prior to the rate increase or entered into within 60 days after the rate increase if the contract is pursuant to a bid that was required to be submitted prior to the effective date; 2) unconditional written contracts for the sale of taxable tangible personal property entered into before the effective date but delivered not later than 90 days after the effective date; or 3) periodic bills for taxable services that include periods before and after the effective date. In the above rules 1 and 2, the increased tax rate would not apply to rentals or leases of tangible personal property. (H.B. 4129 (Ch. 27), approved (in part) by the Governor, 6/26/09)