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Dec 17, 2024
How does establishing a physical presence in Massachusetts create sales tax obligations for businesses?
Discretionary taxes, such as local meals excise taxes, add an additional cost layer for businesses operating in municipalities that impose these taxes. This can impact pricing strategies, profit margins, and competitiveness, especially in areas with higher rates. Businesses may need to absorb some of these costs or pass them on to consumers, potentially affecting sales volumes. Additionally, varying rates across municipalities increase administrative complexity, requiring businesses to stay informed about local tax regulations and ensure compliance.



