Department of Revenue Requirement to "Certify Your Tax Status"

Many companies located in Massachusetts have received an email this week from the Department of Revenue (“DOR”) informing them of a requirement to “certify their tax status” on line via the DOR WebFile site before April 1. The purpose of obtaining this certification is to allow the DOR to publish a list of businesses qualifying for certain property tax exemptions. This benefit primarily applies to “corporations” engaged in “manufacturing” as these terms are defined under state law, as well as other specific business activities, and has been in existence for a number of years.
The DOR is giving the issue more public attention this year due to the fact that Federal law allows other entities, such as partnerships, Limited Liability Companies, etc., to file an election allowing them to be taxed as corporations. Absent this election a partnership engaged in manufacturing would not be eligible for any property tax exemptions.
The decision for partnerships, Limited Liability Companies, and other entities is more complex, as other benefits associated with partnership taxation frequently exceed the incremental property tax cost. Other businesses, such as those not engaged in manufacturing, non-profit organizations, business trusts, etc. may simply ignore the DOR email. If your business is presently organized as a corporation, is engaged in manufacturing, and presently pays a substantial amount property tax, please contact us to determine if you should apply for exempt status using the below links.