Source: https://www.mass.gov/technical-information-release/tir-03-24-convention-center-financing-surcharges
Timestamp: 2018-04-24 23:02:04
Document Index: 639956601

Matched Legal Cases: ['§ 13', '§ 86', '§ 1', '§ 1', '§ 32', '§ 9', '§ 13', '§ 86', '§ 9', '§ 13', '§ 86', '§ 9', '§ 13', '§ 86', '§ 9', '§ 9', '§ 2', '§ 9']

TIR 03-24: Convention Center Financing Surcharges | Mass.gov
Technical Information Release TIR 03-24: 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:
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.
A tour or entertainment cruise package is an arrangement for a tour or cruise that includes various components such as meals, lodging, and admission charges or tickets for entry to museums, theatre performances, sporting events, etc. In the case of a package, the portion of the ticket price reasonably attributable to the fair market value of the tour or entertainment cruise is the amount subject to the 5% CCF surcharge. The fair market value of a tour or entertainment cruise is the amount that an operator would charge for an equivalent sightseeing tour or entertainment cruise without meals, lodging, and other package components . The various charges need not be separately stated on the ticket for this rule to apply.
Example: A ticket for a dinner cruise in Boston Harbor includes admission to the cruise, a multi-course dinner and hors d'oeuvres, nonalcoholic beverages, and live entertainment. Dinner is always included in the price of a ticket and the price of the meal is not separately stated. The ticket price of $80 does not include taxes, fees, or gratuities, which are in addition to the ticket price.
Sales Tax. Meals and beverages (alcoholic and non-alcoholic) sold by a restaurant are subject to sales tax. G.L. c. 64H, §§ 1, 2, 6(h). The statute defines restaurant as any place or establishment where food or beverages are provided and for which a charge is made; a "restaurant" may be stationary or mobile, temporary or permanent. The Department's regulation on Sales Tax on Meals at 830 CMR 64H.6.5 contains the general rules for vendors of meals. The sales price of a taxable meal includes the total amount paid by a purchaser to a vendor as consideration for the sale of the meal, including any amount paid for services that are a part of the sale. G.L. c. 64H, § 1("sales price").
The sales tax is imposed upon admission charges collected by a place of entertainment where food, alcoholic beverages, or both are sold, unless all the following requirements are met: (1) a ticket is sold and collected as evidence of the admission charge, (2) the patron is not required to purchase any food or beverages, (3) the charge is for admission only and does not include any payment for food or beverages; and (4) the admission charges are segregated from other receipts in the books and records of the place of entertainment. See 830 CMR 64H.6.5(7)(d). In this case, a sales tax is imposed upon the total ticket or admission charge collected by the taxpayer because the charge for a dinner cruise includes the cost of a meal and beverages and payment for the meal is required; patrons are purchasing the meal and beverages with the purchase of the ticket, whether or not they want them or consume them.[ 2] Failure to meet each of the requirements listed under the regulation results in a fully taxable sale.
The $10 CCF surcharge is imposed upon each vehicular rental transaction contract in Boston. The term "vehicular rental transaction contract" includes any written agreement setting 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 ½. 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:
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.
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 20 th day of the month following the close of each calendar quarter.
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 20 th day of the month following the close of each calendar quarter.
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 20 th day of the month following the close of each calendar quarter.
TIR 03-24
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). Beginning on October 1, 2001, the 2.75% CCF fee was extended to the transfer of room occupancy by any operator of a hotel, motel or other lodging establishment in West Springfield or Chicopee. St. 2001, c. 45, §§ 2-4, amending St. 1997, c. 152, § 9(a) and (b). See TIR 01-15. [ return to text]
2. In some cases, a mandatory gratuity imposed on the purchase of a dinner cruise ticket is included in the sales price subject to tax. See 830 CMR 64H.6.5(7)(a); Chatham Bars Inn, Inc. v. Commissioner of Revenue, ATB Docket No. F225093 (April 29, 1998). [ return to text]