Governor Deval Patrick's (D-MA) Administration has ordered Town Fair Tire a Connecticut company with 5 stores in NH and 25 stores in Massachusetts to collect Massachusetts sales tax on Massachusetts residents purchases in New Hampshire. The Boston Globe is reporting.
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.
Now this of course isn't sitting well with the good residents of BorderTown Massachusetts.
The idea that Massachusetts consumers can't enjoy a tax break isn't sitting well with the locals in this troubled economy. Just last week Governor Deval Patrick proposed taxing alcohol, candy, and soda, and raising taxes on hotels and meals.
"People are free to buy their tires wherever they want at the best price," said Erin Willet of Lunenburg, who routinely drives 20 miles to Nashua, N.H., to avoid tax on household items and big ticket purchases like appliances. "If Massachusetts doesn't like it, then they should have predictable tax-free holidays so that people can plan their shopping to take advantage of it."
Yes there is a "use tax", which is a nifty way to get around the commerce clause of the United States Constitution, but that is not the responsibility of Town Fair Tire to collect. If I were Governor John Lynch I'd be getting the National Guard ready. Governor Patrick has just declared war on your retail economy. |
