Miscellaneous

Taxachusetts Set to Become Douchiest State in the Union

Oh, sure: Gays can get married in Massachusetts, but if the Bay State has its way, they won't be able to avoid state sales tax by registering for wedding gifts in New Hampshire:

Massachusetts has ordered a tire chain to charge Bay State residents a 5 percent sales tax on their purchases in New Hampshire in an unprecedented move that could have huge implications for consumers and other merchants.

Town Fair Tire Centers, which is based in Connecticut but has six shops in New Hampshire and 25 in Massachusetts, is fighting back with a lawsuit now before the Massachusetts Supreme Judicial Court that accuses the state of violating the US commerce clause. If Massachusetts prevails in the case, which is likely to be heard next month, it could drive up costs for consumers and retailers such as Best Buy and Sears that sell expensive home appliances and other goods in New Hampshire, which doesn't have a state sales tax. It also could mean millions of dollars in new tax revenue for the Commonwealth as it faces a $1.1 billion budget deficit, according to tax analysts.

How can you even enforce that? And if a guy from Massachusetts travels to NH for some new tires and the company is forced to tax them, why wouldn't NH get to collect on those taxes? What's absolutely insane is that, based on an audit, Massachusetts levied a tax penalty of over $108,000 on that tire company for not taxing Mass residents.

This has terrible idea written all over it, and should Massachusetts prevail (it won't), it could lead to a system where every town, city, county, and state in the country will have to keep track of where their buyers are from, and where to send the tax difference. Hell, will this also mean that, if a NH resident buys tires in Massachusetts, that he won't be taxed on it? Could a NH resident then go to any state in the nation and buy goods tax-free by virtue of NH being a sales-tax free state?

Come on, Massachusetts. Pull your head out of your ass.

Full post as published by Quiz Law on February 03, 2009 (boomark / email).