In response to growing concerns about retail theft, the National Federation of Independent Business (NFIB) has backed several legislative measures aimed at addressing retail crime in Massachusetts. The organization stated that these proposals are designed to give law enforcement more options when prosecuting individuals involved in retail crimes, with the goal of providing flexibility for authorities and supporting small businesses.
Legislation was also presented to the Joint Committee on the Judiciary to address gift card fraud. According to data from the Federal Trade Commission, gift card scams, including “draining,” resulted in losses of approximately $217 million nationwide in 2023. The proposed bills would update definitions related to gift card fraud and establish penalties for those found guilty of manipulating or tampering with gift cards. “These pieces of legislation will help ensure those tampering and manipulating gift cards will face the appropriate penalties under state law,” according to NFIB.
NFIB also provided testimony before the Joint Committee on Revenue regarding sales tax issues affecting small businesses. The organization advocated for repealing advanced sales tax collection requirements, which it described as confusing and burdensome for smaller companies. Additionally, NFIB supported a bill that would allow intent to be considered before fines are issued by the Department of Revenue for problems related to advanced sales tax payments.
As part of its advocacy efforts, NFIB expressed support for a vendor’s collection allowance bill. This measure would permit businesses that collect and remit state sales tax to retain 2% of that revenue annually, up to $750—a practice already adopted by nearly 30 other states. “It is only fair and equitable that small businesses are compensated for providing this service to the state,” NFIB stated.
The organization also endorsed proposals to lower the state sales tax rate from 6.25% to 5%, as well as legislation exempting rolling stock from taxation, aligning Massachusetts with 37 other states.
