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Maintain Local Property Tax Exemption: File by April 1 Deadline

Posted by Brad MacDougall on Mar 19, 2014 4:08:00 PM

april 1 deadline for tax exemptionManufacturing or research and development companies entitled to local property-tax benefits must file the Annual Certification of Entity Tax Status online with the Massachusetts Department of Revenue (DOR) by April 1, 2014 to claim those benefits.

Click here for the DOR resource page for the April 1 filing deadline.

Corporations seeking to maintain (or acquire) favored property-tax status must file by the deadline to ensure that they appear on DOR’s Division of Local Services List of Corporations for 2014.  Cities and towns use “The List” to determine which corporations and entities treated as corporations are entitled to local property tax relief. The List also specifies for Massachusetts tax purposes, businesses that have been granted the “manufacturing corporation” classification.

Joseph X. Donovan, a tax lawyer at Sullivan and Worcester, says because of tax law changes in 2009, the Department of Revenue could no longer use filings with the Secretary of the Commonwealth to alert local officials about the tax status of a company.

“While the change to a new procedure was necessary, there is a real risk that companies —unaware of the new annual filing requirement to protect favored local property tax statuswill find themselves effectively declassified, with potentially very harsh consequences,” Donovan said.

“While they will be able to cure the declassification by challenging it in the Appellate Tax Board, that route can be quite costly. Moreover,  the resolution of any dispute before the Board can take a long time.   We should hope that taxpayers who find themselves before the Board in such circumstances will be permitted to quickly and informally resolve with opposing counsel the ‘foot fault’ of failure to file the form.”

The DOR publishes “The List” electronically on its Web site on or about April 1. Omission from the list or any particular classification may be appealed by the employer.

Here are some resources for employers:

If you have trouble with the registration process, or with accessing your account, please contact DOR Customer Service at 617-887-6367.  If you have questions about completing the Annual Certification of Entity Tax Status online application after reviewing the FAQs, please contact the Division of Local Services.

Should you have any additional questions, please contact Brad MacDougall, Vice President for Government Affairs or 617-262-1180.

Topics: A.I.M. Mutual Insurance Company, AIM Employer Issues Survey, Financial Services, Associated Industries of Massachusetts, AIM Business Confidence Index, Massachusetts economy, Employment Law, Taxes, John Regan, Annual Certification of Entity Tax Status, Certification of Entity Tax Status, DOR, Department of Revenue, DOR List of Corporations

Health Costs, Taxes Top List of Massachusetts Employer Concerns

Posted by John Regan on Aug 27, 2010 11:16:00 AM

Health insurance costs, taxes, electric rates and unemployment insurance top the concerns of Massachusetts employers in early returns from AIM’s 2010 Employer Issues Survey.

AIM Employer Issue SurveyOne hundred fifty-six of the 162 employers who responded during the first days of the survey expressed “great concern” or “moderate concern” about the soaring cost of providing health insurance to their workers. One hundred thirty-four companies were concerned about state taxes while another 125 employers were greatly or moderately worried about paying the highest electric rates in the nation.

Other concerns include workers compensation insurance costs, the quality of public education and the availability of qualified workers.

AIM conducts the Issues Survey every two years to identify the employer priorities that will make up its public policy agenda.

“The battles we wage in Boston and Washington reflect the priorities of our employer members, who are seldom shy about telling us which issues most affect their ability to grow, prosper and create jobs,” said Richard C. Lord, President and CEO of AIM.

AIM invites member employers who have not yet completed the survey to do so as a way to ensure that the association concentrates on the issues that matter to the employer community. Participants may complete the survey anonymously or provide contact information for follow-up purposes. 

TAKE THE ISSUES SURVEY

Asked to name the one issue that keeps them up at night, employers alternated between economic problems such as lack of access to credit and the construction slump, to broader concerns such as government encroachment on the ability of entrepreneurs to create new businesses and jobs.

 “We need sound economic growth policies that will assist the private sector, not the public sector, in starting new businesses and growing existing businesses,” one employer said.

Federal issues are also on employer radar screens. Survey participants expressed concern about proposed cap-and-trade climate change legislation, off-balance accounting for Social Security liabilities and expansion of the federal bureaucracy in conjunction with health care and financial services reform.

Employer comments about rising health insurance premiums underscore the fact the issue has emotional as well as financial consequences:

“Premium increases absolutely affect our company, but my biggest concern is for our employees,” wrote one employer.

“Year after year we offer them plan choices with reduced coverages/high deductibles/high co-pays with an expectation of reduced premiums, yet the opposite happens. The cost of health insurance is out of control. As an HR person I'm upset by this and I think I have a better understanding of the entire process. I can't even imagine how our employees feel.”

Which issues matter most to you?

Topics: AIM Employer Issues Survey, Employers, Associated Industries of Massachusetts, AIM, Health Care Costs, Taxes

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