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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

Massachusetts House Passes Balanced CORI Reform

Posted by Christopher Geehern on May 27, 2010 4:48:00 PM

AIM thanks the Massachusetts House of Representatives, who amended and passed a bill (H.4712) Wednesday evening on a 138-17 vote to reform the state's Criminal Offender Record Information (CORI) system to the benefit of both job applicants and employers.

The House CORI measure reduces the sealing time for felonies from 15 years to 10, and for misdemeanors from 10 years to five and preserves the current availability of records to the public and to law enforcement. It includes much-needed improvements in the operation of the CORI system to broaden access and improve accuracy and response times.

Significant for employers are provisions to protect them from liability when in compliance with the law and allowing for the continued use of aggregators (third-party CORI users). A "ban the box" provision preventing employers from asking about criminal records as part of the initial job application exempts employers who are statutorily prohibited from hiring ex-offenders, and allows inquiries later in the process for others.

"The legislation recently approved by the Senate (S.2220) and now the House achieves the goals of CORI reform - a more accurate and efficient system that enhances employment opportunities while maintaining appropriate protections for public and workplace safety," said John Regan, AIM's Executive Vice President for Government Affairs. "We commend the House for attending to and successfully balancing the very real concerns of all stakeholders, including the employer community.  AIM will continue to work with legislators in the House and Senate as the two proposals move towards a conference committee between the two chambers.

In particular, we thank Speaker Robert DeLeo, Representative Charles Murphy, Chairman of the House Ways & Means, Representative Eugene O'Flaherty, House Chairman of the Joint Committee on the Judiciary and Minority Leader Bradley Jones for their contributions to reaching a satisfactory resolution to what has been a complex and contentious issue."

Topics: Massachusetts Legislature, Employment Law, CORI, House Speaker Robert DeLeo, Labor, John Regan, Policy

AIM's Government Affairs Offers Opportunity to Engage on Issues

Posted by Brad MacDougall on Apr 28, 2010 11:54:00 AM

Yesterday, John Regan, AIM's Executive Vice President of Government Affairs hosted IssueConnect a monthly live webinar which updates members on economic trends in Massachusetts and provides an opportunity to engage on all the public policy issues that affect your bottom line - taxes, health care costs, and proposals to mandate seven sick days and other benefits.  Should you have any questions or feedback, please contact John Regan, AIM’s Executive Vice President of Government Affairs jregan@aimnet.org or 617-262-1180.

Register here for the next IssueConnect webinar scheduled for Tuesday, May 25, 2010.  Join us to address the pressing issues of the employer community.

In addition to The Business Insider blog, connect with us on Facebook, LinkedIn, and Twitter.

Here are a few of the answers to questions posed by members during April's IssueConnect:

Does AIM support state legislation to allow municipal government to join the state healthcare plan known as the Group Insurance Commission (GIC) to relieve municipal budgets and reduce pressure on state aid?
AIM supports granting Massachusetts municipalities the ability to alter health care plan design, without having to bargain those changes with municipal unions.  Municipal health insurance costs have increased at double-digit rates annually since 2000 – more than five times the rate of inflation – growing from just 6 percent of municipal budgets in 2001 to a projected 20 percent by 2020, according to a Mass. Taxpayers Foundation analysis.

Two straightforward changes would provide large and immediate savings in health costs, dwarfing the savings from all other municipal relief proposals:

  • Give local officials the power to design their health insurance plans outside of collective bargaining.
  • Require by statute that all eligible local retirees enroll in Medicare as their primary source of health insurance coverage.

In both cases, these changes would merely provide municipal leaders with the same tools as the state to manage health insurance costs and bring the extraordinarily generous benefits of municipal employees – the last bastion of the $5 co-pay – in line with state employees.

Allowing municipalities to change their health benefits outside of collective bargaining – as has long been done by the state’s Group Insurance Commission (GIC) – would save cities and towns roughly $100 million in the first year alone and as much as $2 billion annually by 2020.

What do you see as potential growth areas for jobs?
The largest growth in the next few years is likely to be in some of the more cyclical industries.  We’ll see gains in business/technical/professional services, especially at the higher end (most of the gains so far have been temp employment), and leisure/recreation (e.g., restaurants).  These should pick up as the economy begins to expand in earnest.

Among the industries specifically hit, some parts of construction (not office buildings), and also manufacturing, are likely to regain lost jobs.  There’s unlikely to be much growth in government jobs, and there could be further significant losses.

Health services will continue to be strong, education probably less so.

How does the national and state healthcare reform efforts impact job creation?
Healthcare costs are one of the top issues continually raised by employers and business leaders trying survive and grow their companies.  AIM’s board of directors decided that participating in reform and cost containment efforts provides employers the best opportunity to help solve the long-term health cost problem – which currently strains employer’s ability to create jobs.  AIM believes that sustainable job creation in the Commonwealth requires significant commitment by public policy decision makers and all stakeholders to address to cost of healthcare.

In early April, Rick Lord AIM’s President and CEO spoke with Health and Human Services Secretary Kathleen Sebelius and her staff at length about the decision by Massachusetts businesses in 2006 to work with government, health-care providers, insurers and consumer groups to develop a framework of shared responsibility to expand health insurance coverage.  Recently, Sandy Reynolds, AIM’s Executive Vice President commented about the impacts of the federal law on Massachusetts.

AIM offered comments on the ongoing state healthcare cost containment proposals to tackle health-care costs for small businesses; we made clear that any solution must involve both insurers and providers. AIM believes that the time is now for offering some relief and we cannot let the fact that the solutions are hard to implement or disruptive of the status quo be an excuse for not forging ahead to resolve the health care cost conundrum.  AIM recently commented on an initial public policy plan outlined by the Senate President and we are committed to work with the Administration and the members of the General Court as healthcare cost containment measure move through the legislative process.

Our opportunity to address the high cost of healthcare in the Commonwealth has arrived. We invite you to join us in that effort.

Has AIM taken a position on the Sales Tax Ballot question?
Not at this time.

Topics: Massachusetts Legislature, Employers, Massachusetts economy, Massachusetts employers, Human Resources, Richard Lord, Common Wealth 2010, John Regan, Policy

AIM Comments on Economic Development Plans

Posted by Brad MacDougall on Feb 9, 2010 9:41:00 AM

John Regan, Executive Vice President of Government Affairs, offered comments yesterday on economic development plans announced by Senate President Therese Murray and Governor Deval Patrick. The Senate proposal would streamline the complex system through which the commonwealth helps employers, while the governor's plan would freeze Unemployment Insurance rates and create a tax credit for small companies that hire and retain workers.

Regan made his comments to NECN Business Reporter Peter Howe.

Topics: AIM, Economic Development, John Regan

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