Small Business Exemption

With the increase in energy costs affecting all of our members, the Chamber wants to be sure small businesses are aware of a state law commonly referred to as the Small Business Exemption. Under this law, certain small businesses do not have to pay the sales tax on gas, steam, electricity and heating fuel purchased solely for their own use.

This law applies to small businesses that:
• Have a gross income of less than $1,000,000 for the prior calendar year;
• Reasonably expect the same in the current year; and
• Have 5 or less employees.

If you qualify for this program, you must fill out a state tax form and submit it to your vendor. Please note this form must be filled out annually. You can find the form by clicking here http://www.mass.gov/Ador/docs/dor/Forms/Wage_Rpt/PDFs/st_13.pdf.
Under the law, only purchases made after the certificate has been submitted are eligible for the exemption.

For National Grid Customers:
For those who did not file at the beginning of the year, the law allows the utility company to apply on behalf of the small business for an abatement. The utility company is not required to do so. As a result, National Grid has changed its policy and will no longer apply for abatements on behalf of small businesses who have not filed the forms on time.

For Unitil Customers:
The Unitil policy on the exemption allows any qualifying small business that does not file the form with the company at the beginning of the tax year to file at form at any time. Unitil will apply for abatement on behalf of its customers and will rebate any sales tax paid to the customer.