Mass. Manufacturing Companies Must Update Certification of Entity Tax Status by April 1

Effective January 1, 2013, the state of Massachusetts is requiring classified manufacturers (see below for definition) or use the Massachusetts WebFile system to file an Annual Certification of EntityTax Status, due by April 1, 2013. By making this filing, the state’s list (Annual List of Corporations Subject to Taxation in Massachusetts) will be updated, and those entities names will be available to local municipalities for determining any personal property tax (not including real estate taxes) benefits available.

Companies classified as manufacturers in Massachusetts are entitled to certain personal property tax benefits (they are still subject to real estate taxes). To obtain “classified manufacturer” status, a company must complete a Form 355Q and submit it to the state to review and determine if the manufacturing activities are substantial enough to warrant the classification. The Form 355Q is a questionnaire that can be obtained at the following website:

For any companies considering classified status, we would recommend calling your local tax assessor to determine what benefits are available for classified manufacturers. This classification is available to corporations, or limited liability companies (LLCs) that have elected to be taxed as corporations. LLCs that have elected to be taxed as partnerships would not be permitted to obtain classified manufacturing status.

Rodman & Rodman, P.C. does not prepare the Form 355Q, but can assist with any questions that come up during the application process.