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Thursday, July 2, 2009

Tax changes catch some businesses off guard

Nashua Telegraph reporter Maryalice Gill notes that local businesses were not notified that they were expected to collect higher taxes on behalf of the state, starting yesterday:

The start of a new fiscal year, July 1, triggered the implementation of the new tax, giving many local business owners just one night to adjust.

Owner Korapin Sueksagan only knew about the increase because her friend in the restaurant industry called her Tuesday night and asked if she was ready for the tax.

"I said 'no way,'" Sueksagan said. "The tax passed yesterday and it's effective today. It's something that I never knew was possible."

The House and Senate passed the final budget last Thursday, but didn't get the document to Governor John Lynch for his signature until June 30th. Since the state can't notify businesses of changes in the law until the law is changed, that gave them less than 12 hours to let hotels, restaurants, and stores that they had to collect 9% on rooms and meals, and an additional $.45 on cigarettes.

I noticed yesterday that the coffee shop didn't charge me 9% on my morning brew. I figured they just hadn't updated their cash registers. I should have asked if they knew they were supposed to be collecting the higher rate.

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