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Massachusetts corporations, and entities taxed as corporations, are exempt from local property taxes except in the case of underground and aerial assets, as well as certain machinery. Additionally, Massachusetts manufacturing corporations are potentially eligible for its machinery to be exempt from local property taxation.
Local governments use the Annual List of Corporations Subject to Taxation in Massachusetts, issued by the Department of Revenue, as a starting source for determining what businesses in its jurisdiction may qualify for exemptions from local property taxes. In the past, this list was compiled based on state filings.
Effective January 1, 2013, inclusion on this list will be based upon whether or not an entity filed an "Annual Certificate of Entity Tax Status" by April 1 via the Department of Revenue's WebFile for business website.
All Massachusetts corporations and entities that are taxed as corporations are encouraged to go to the DOR's Webfile for Business website prior to April 1 to file this annual certification. Each entity that is part of a combined group should file separate certifications.
Non-profit corporations or entities eligible for local property tax exemptions do not need to file for this certification. Exemptions for these types of entities are based on other information.
This filing will not eliminate the need for a corporate entity to file a local personal property tax return for property that is not exempt (i.e., underground and aerial assets; certain machinery).
The DOR's WebFile for Business website has a Frequently Asked Questions section addressing this, as well as other webfile for business questions.
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