Taxes on computer and software services in Massachusetts...
Taxes on computer and software services in Massachusetts were repealed in the Legislature this week, two months after being enacted. The House voted to repeal the tax 156-1 and the Senate repealed it unanimously. Twenty Massachusetts business leaders filed an…
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initiative petition with the attorney general in August to repeal the 6.25 percent sales tax on these services (http://bit.ly/18a93lJ). Earlier this month, the Massachusetts Taxpayers Foundation released a study on how the tax compares with other states (http://bit.ly/18vJlZB). MTF said Massachusetts is only state that singles out computer and software services for taxation. “Repealing the tax would return Massachusetts to the mainstream of the 50 states,” said MTF President Michael Widmer. “With Massachusetts losing 3,000 jobs since January, placing the highest tax burden in the country on innovation and technology -- the state’s greatest economic strength -- is simply bad policy.” The tax would cost businesses at least half a billion dollars and it would “inevitably lead tech companies to seriously consider relocating,” said TechAmerica in a statement (http://bit.ly/1fO29qv).