Massachusetts Auto Shop Owes Sales Tax, Avoids Evasion Charge

The Massachusetts Appellate Tax Board ruled an auto-body collision repair business must pay sales tax on the services it provides, but doesn’t have to pay a doubled assessment for willful tax evasion.

“Filing a return with which the Commissioner disagrees, even if it is incorrect, does not necessarily equate with failure to file a ‘proper return,’” Chairman Mark J. DeFrancisco said in the Tuesday opinion.

According to state revenue department regulations, a transaction involving both a performed service and the transfer of tangible personal property is subject to sales tax if the cost of the property is more than ...