An Act to establish a vendors’ collection allowance

This Massachusetts bill authorizes vendors who collect sales tax to keep a small portion of the taxes they gather to help cover collection costs. Specifically, eligible vendors can retain up to 2% of the total tax they collect each year, with a strict annual cap of $750. The law requires vendors to deduct this amount from their tax payments during standard reporting periods until they reach the yearly limit, after which no further deductions are allowed until the next calendar year begins.