CONFIRMED: MA Tech Tax has been repealed!

Governor Deval Patrick has signed a bill repealing a less than two-month-old tax on computer and software services.

 

The governor’s press office announced the signing in a one-sentence release Friday.

The House and Senate voted this week to repeal the 6.25 percent sales tax, which went into effect July 31. The tax had been widely criticized by the state’s technology sector.

Patrick has said he supports repeal of the tax but expressed concern about the loss of revenue in the state budget. The tax was estimated to generate $161 million in the current fiscal year.

Legislative leaders say they believe the loss can be offset by unanticipated gains in overall tax collections.

Patrick would have had little chance of sustaining a veto, since only one state legislator voted against repeal.

 

Source: Boston.com

Repealing the MA tech tax...we're almost there!

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