Source: https://www.mass.gov/technical-information-release/tir-00-2-convention-center-financing-surcharges
Timestamp: 2018-04-25 18:34:23
Document Index: 626563988

Matched Legal Cases: ['§ 13', '§ 86', '§ 9', '§ 32', '§ 14505', '§ 9', '§ 13', '§ 86', '§ 9', '§ 13', '§ 86', '§ 9', '§ 13', '§ 86', '§ 9', '§ 9']

TIR 00-2: Convention Center Financing Surcharges | Mass.gov
Technical Information Release TIR 00-2: Convention Center Financing Surcharges
The Convention Center Act provides for construction and financing of convention centers in the Commonwealth. St. 1997, c. 152. The legislation imposes a convention center financing (CCF) fee (1) and three CCF surcharges, all effective January 1, 1998. The legislature recently granted authority to the Commissioner to administer the CCF surcharges as though they were taxes and makes them subject to all the tax administration provisions of chapter 62C. St. 1999, c. 68, § 13; G.L. c. 62C, § 86. The purpose of this Technical Information Release is to explain the application of the CCF surcharges. These surcharges are:
(1) a 5% CCF surcharge on the purchase price of a ticket for any water-based sightseeing, tourist venue or entertainment cruise or tour, and for any land-based sightseeing, tourist venue or trolley tour, conducted partly or entirely within Boston;(2) a $10 CCF surcharge on each vehicle rental contract in Boston; and(3) a $2 (per day) CCF surcharge on any vehicle that parks in any parking facility built in Boston, Springfield or Worcester in conjunction with the projects authorized by this legislation. St. 1997, c. 152, § 9(d), (e) and (f).
There shall be a surcharge of five percent of the purchase price imposed on the price of any ticket purchased for any water-based sightseeing, tourist venue or entertainment cruise or tour and for any land-based sightseeing, tourist venue or trolley tour, originating or located in the commonwealth and conducted partly or entirely within the city of Boston; provided however, that no such surcharge shall be imposed on children's tickets, so-called, if said ticket is $6 or less; and provided, further, that no such surcharge shall be imposed for such tours or cruises on tickets sold to an organized school or youth group and adults accompanying such group. For purposes of this paragraph, a ticket shall include any individual or group admission charge for said tour or cruise, whether or not evidenced by a written agreement, and a water-based entertainment cruise shall include any cruise of 24 hours duration or less, conducted partly or entirely within the city of Boston, whose primary purpose is not transportation, but shall not include bare-boat charters so-called.
B. "Ticket"
Example: The leader of a tour group makes an oral agreement with the operator of a trolley tour of Boston for a group admission charge. Payment of the group admission charge is a ticket and is subject to the 5% CCF surcharge.Example: A company enters into a contract with the operator of an entertainment cruise for a number of individuals to participate in an evening cruise in Boston Harbor. Payment of the group admission charge under the terms of the contract is a ticket and is subject to the 5% CCF surcharge.
C. "Tourist venue tour" or "tourist venue cruise"
1. A "tourist venue tour" or "tourist venue cruise" is a service provided to the general public or an organized group that, with or without a guide, takes tour customers from place to place wholly or partly within Boston (including Boston Harbor) and provides information on sightseeing or points of special interest, such as historical, cultural, educational, artistic, literary, or entertainment attractions.
D. "Conducted partly or entirely within the city of Boston"
A bus tour of Boston, Lexington, and Cambridge is subject to the 5% CCF surcharge because Boston is included in the tour. Example: Transportation not subject to the 5% CCF surcharge includes, but is not limited to, the following:
Water-based tours or cruises and entertainment cruises subject to the 5% CCF surcharge include, but are not limited to, the following:
E. Boston Tour and Cruise Packages
1. A tour or cruise package is an arrangement for a tour or cruise that includes various components such as meals, lodging, or admission charges or tickets for entry to museums, theatre performances, sporting events, etc.2. A ticket for a tour or cruise package may include meals or hotel rooms on which the sales tax on meals (2) and room occupancy tax must be paid. In such a case, the portion of the ticket price attributable to the taxable meals or lodging may be deducted from the ticket price before calculating the amount of the 5% CCF surcharge. The charges for the meals and lodging need not be separately stated on the ticket.3. In calculating the amount of the 5% CCF surcharge on the price of a dinner cruise ticket, the operator is allowed to deduct the portion of the ticket price reasonably allocated to the meal. The charge for the meal need not be separately stated on the ticket.4. If the price of a ticket for a package tour includes various tickets or admissions charges that are otherwise nontaxable, e.g. theatre tickets, the price of the nontaxable tickets or admissions charges may be deducted from the price of the ticket for the package tour in calculating the amount of the 5% CCF surcharge. The various charges need not be separately stated on the ticket for this rule to apply.
There shall be an additional surcharge of $10 imposed upon each vehicular rental transaction contract in the city of Boston....
The $10 CCF surcharge is imposed upon each vehicular rental transaction contract in Boston. The term "vehicular rental transaction contract" includes any written agreement settling forth the terms and conditions governing the use of a vehicle provided by a rental company for thirty continuous days or less. See generally G.L. c. 90, § 32E 1/2. All vendors with customers that sign or execute a vehicle rental contract in Boston must collect the $10 CCF surcharge. Types of vehicles subject to the surcharge include, but are not limited to the following:
In applying the $10 CCF surcharge on a vehicle rental contract in Boston where multiple vehicles are provided under the terms of a single contract, only one $10 CCF surcharge is imposed.
B. "$2 per day"
1. All sales and transactions that Massachusetts is prohibited from taxing under the constitution or laws of the United States are exempt from the CCF surcharges.2. Agencies of the United States or its political subdivisions are exempt from all CCF surcharges. In the case of the $2 CCF surcharge on parking in a convention center facility, the exemption applies if the vehicle is owned, rented or leased by the United States government or its political subdivisions.3. To the extent that a foreign diplomat or consular employee is exempt from sales tax pursuant to Administrative Procedures 102 and 621, the diplomat is likewise exempt from all CCF surcharges. In the case of the $2 CCF surcharge on parking in a convention center facility, the exemption applies if the vehicle is owned, rented or leased by the diplomat or consular employee.
1. There is an exemption from the 5% CCF surcharge on tickets for Boston tours and cruises for organized school or youth groups and adults accompanying such groups. This exemption applies to school and youth groups of high school age or younger. If the youth group is not associated with a school, the exemption applies to youth groups age 18 or younger. This exemption does not apply to colleges or universities.2. There is an exemption from the 5% CCF surcharge on tickets for Boston tours and cruises for children's tickets costing $6 or less.3. Some tour tickets may be exempt from the 5% CCF surcharge under a federal law affecting the taxation of passengers traveling in interstate commerce by motor carrier. See 49 U.S.C. § 14505, as added by the Interstate Commerce Commission Termination Act of 1995, Public Law 104-88. To the extent not exempt under federal law, tour tickets are subject to the 5% CCF surcharge.
1. The 5% CCF surcharge imposed by St. 1997, c. 152, § 9(d) must be collected and paid by the operator of any tour or cruise and remitted to the Department on a quarterly basis on Form CCF-ST. St. 1999, c. 68, § 13, amending G.L. c. 62C, adding new § 86(a). The return is due on or before the 20th day of the month following the close of each calendar quarter.2. The operator of a tour or cruise includes any tour broker, cruise broker, travel agent or travel packager who issues a tour or cruise ticket.
1. The $10 CCF surcharge imposed by St. 1997, c. 152, § 9(e) must be collected and paid by the vendor operating a vehicle rental establishment and remitted to the Department on a quarterly basis on Form CCF-VR. St. 1999, c. 68, § 13, amending G.L. c. 62C, adding new § 86(b). The return is due on or before the 20th day of the month following the close of each calendar quarter.2. The $10 CCF surcharge must be remitted separately from the 5% sales tax.
1. The $2 CCF surcharge imposed by St. 1997, c. 152, § 9(f) must be collected and paid by the operator of a parking facility built in conjunction with a convention center facility in Boston, Springfield, and Worcester and remitted to the Department on a quarterly basis on Form CCF-PF. St. 1999, c. 68, § 13, amending G.L. c. 62C, adding new § 86(c). The return is due on or before the 20th day of the month following the close of each calendar quarter.
TIR 00-2
1 Under the Convention Center Act, a 2.75% CCF fee is also imposed on the transfer of room occupancy by any operator of a hotel, motel or other lodging establishment in Boston, Cambridge, Springfield, or Worcester. St. 1997, c. 152, § 9(a). The 2.75% CCF fee, effective January 1, 1998, is in addition to the state room occupancy tax of 5.7% and the local option room occupancy tax of 4% in effect for those cities. The Convention Center Act authorizes the Department to administer the 2.75% CCF fee as a tax under the provisions of chapter 64G, the room occupancy excise. St. 1997, c. 152, § 9(b). Thus, the 2.75% CCF fee is to be collected and remitted in the same manner and at the same time as the current room occupancy excises. See 830 CMR 62C.16.1 (1998).
2 For sales tax implications when an admission ticket entitles the bearer to a meal, see 830 CMR 64H.6.5(7)(d).