The Massachusetts House voted Wednesday to repeal an unpopular new technology tax on computer and software services.
The House vote was 156-1. The Senate is expected to vote on repealing the tax when senators come back into session Thursday.
Gov. Deval Patrick is open to repealing the tax, which state officials had estimated would generate $161 million in the fiscal year that began July 1. The governor said Wednesday that he's waiting to see what House and Senate leaders do to close the gap that repeal would leave in the budget.
Asked if he would veto the repeal if it didn't include additional revenues, Patrick said: "That's not where I am. They know what we have to deal with. I can't deal with it without them so I'm waiting to see what they do," he said. "Whether they do it all today or do it over the next several months, remains to be seen."
House Speaker Robert DeLeo has said that no new taxes will be proposed to make up for the revenue. He's also said he anticipates no budget cuts.
DeLeo said Wednesday that he was proud of the repeal vote, which "sends a strong message to the world that Massachusetts is the place for innovators to succeed and thrive."
House Republican leader Rep. Brad Jones called the repeal bittersweet because it is "only undoing a stupid thing we did six weeks ago." (We couldn't agree more!)
Source: ABC News
Showing posts with label MA sales tax. Show all posts
Showing posts with label MA sales tax. Show all posts
Thursday, September 26, 2013
Thursday, August 29, 2013
The "Tech Tax" has hit Massachusetts, and will surely impact your business. Help us take action now!
Massachusetts now has the
highest and most aggressive technology tax in the nation at 6.25%. This
is one
time that being ranked #1 is not a good thing for anyone. This tax
impacts many
areas of information technology, including website development, software
use and
development, just to mention a few. It also applies to installing and
configuring personal and business computers, servers, network devices,
virus scanning
software, Microsoft office software and much more where you will be
taxed for
both the software and now labor necessary to install and configure it.
Effective July 31st, the Massachusetts Department of Revenue has applied sales and use tax (6.25%) to previously untaxed computer/software services. Known colloquially as the "tech tax," these new taxable services include: the installation of computer systems (including servers, PCs, switches, firewalls, routers, etc), the planning, consulting, or designing of computer systems, and the installation, modification, or adaptation of most software. This new tax on technological services was written into the legislature, sections 48 and 49. An Act Relative to Transportation Finance.
Unfairly targeting the Information Technology industry, and completely unrelated to Transportation Finance, this new "tech tax" legislature is poorly written, poorly timed, and, as many argue, too reminiscent of previously failed attempts in this state to impose sales tax on services. Not to mention it has a potentially crippling effect on small businesses in Massachusetts.
We are working with our state representative and local groups to petition the State to repeal/revise this tax. The Mass High Tech Council has teamed up with The Massachusetts Taxpayers Foundation to further push for a repeal. There are also several blogs devoted to cataloging the repeal progress, including No Tech Tax and Repeal The IT Service Tax.
How the New "Tech Tax" Affects You
The DOR has issued guidelines and a FAQ explaining the new taxable services vs. nontaxable services. Please look at this to determine how you will be impacted. This means that any computer/software services performed after July 31, 2013 and falling under the new taxable definitions set forth by the Massachusetts Department of Revenue will be subject to an additional 6.25% sales tax.
What You Can Do
We understand the impact that this service tax will have on your business and personal computer services. If you wish to join us in a repeal effort, we recommend adding your signature to this online petition to help repeal this new law.
Please join me, John, and our IES family in the campaign to repeal this discriminatory sales tax: http://chn.ge/15jZmMV
Effective July 31st, the Massachusetts Department of Revenue has applied sales and use tax (6.25%) to previously untaxed computer/software services. Known colloquially as the "tech tax," these new taxable services include: the installation of computer systems (including servers, PCs, switches, firewalls, routers, etc), the planning, consulting, or designing of computer systems, and the installation, modification, or adaptation of most software. This new tax on technological services was written into the legislature, sections 48 and 49. An Act Relative to Transportation Finance.
Unfairly targeting the Information Technology industry, and completely unrelated to Transportation Finance, this new "tech tax" legislature is poorly written, poorly timed, and, as many argue, too reminiscent of previously failed attempts in this state to impose sales tax on services. Not to mention it has a potentially crippling effect on small businesses in Massachusetts.
We are working with our state representative and local groups to petition the State to repeal/revise this tax. The Mass High Tech Council has teamed up with The Massachusetts Taxpayers Foundation to further push for a repeal. There are also several blogs devoted to cataloging the repeal progress, including No Tech Tax and Repeal The IT Service Tax.
How the New "Tech Tax" Affects You
The DOR has issued guidelines and a FAQ explaining the new taxable services vs. nontaxable services. Please look at this to determine how you will be impacted. This means that any computer/software services performed after July 31, 2013 and falling under the new taxable definitions set forth by the Massachusetts Department of Revenue will be subject to an additional 6.25% sales tax.
What You Can Do
We understand the impact that this service tax will have on your business and personal computer services. If you wish to join us in a repeal effort, we recommend adding your signature to this online petition to help repeal this new law.
Please join me, John, and our IES family in the campaign to repeal this discriminatory sales tax: http://chn.ge/15jZmMV
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