Thursday, August 29, 2013

You can do something about the Technology Tax!



The United Regional Chamber of Commerce logo     

"Tech Tax" Hits Massachusetts AND WILL IMPACT YOUR BUSINESS, 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 virus scanning software, Microsoft office software and much more where you will be taxed for software and labor.
  
Effective July 31, the Massachusetts Department of Revenue is applying 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 "An Act Relative to Transportation Finance," sections 48 and 49. 

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 representatives and local groups to petition the State to repeal, revise, or postpone 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. We recommend visiting both of those pages to join the repeal movement.

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 carry sales tax.

What You Can Do???
  
We understand the impact that this service tax will have on your business as well as many of our Chamber members. If you wish to join us in a repeal effort, we recommend any of the following:
  1. Contact your local state representative:
Senate President Therese Murray, State House
Suite 332
Boston, MA 02133
Phone: 617-722-1500

Senator James Timilty, State House
Room 507
Boston, MA 02133
Phone: 617 722-1222

Senator Richard Ross, State House 
Room 520
Boston, MA 02133
Phone: 617-722-1555

Senator Karen Spilka, State House
Room 320  
Boston, MA 02133
Phone: 617-722-1640

Senator Kevin Kuros, State House 
Room 443 
Boston, MA 02133
Phone: 617-722-2460

Senator Richard Moore, State House  
Room 111 
Boston, MA 02133
Phone: 617-722-1420

Representative Elizabeth Poirier, State House 
State House 
Room 124 
Boston, MA 02133
Phone: 617-722-2100
Fax: 617-626-0108

Representative Paul Heroux
Room 236 
Boston, MA 02133
Phone: 617-722-2430
Fax: 617-626-0335

Representative Jeffrey Roy 
Room 134 
Boston, MA 02133
Phone: 617-722-2400
Fax: 617-626-0279

Representative Steven Howitt
Room 237  
Boston, MA 02133
Phone: 617-722-2305
Fax: 617-626-0211

Representative F. Jay Barrows
Room 542 
Boston, MA 02133
Phone: 617-722-2488
Fax: 617-722-2390

Representative Daniel Winslow
Room 33
Boston, MA 02133
Phone: 617-722-2060
Fax: 617-626-0296

  1. Sign the online petition at http://www.change.org/petitions/massachusetts-state-legislature-repeal-the-tax-on-it-services
  2. Send your comments and concerns directly to the Massachusetts Department of Revenue at: rulesandregs@dor.state.ma.us

Thank You for your support.

Jack Lank
President
The United Regional Chamber of Commerce 



The United Regional Chamber of Commerce | 42 Union Street | Attleboro | MA | 02703