"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.
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:
- Contact your local state representative:
Senate President Therese Murray, State House
Suite 332
Boston, MA 02133
Senator James Timilty, State House
Room 507
Boston, MA 02133
Senator Richard Ross, State House
Room 520
Boston, MA 02133
Senator Karen Spilka, State House
Room 320
Boston, MA 02133
Senator Kevin Kuros, State House
Room 443
Boston, MA 02133
Senator Richard Moore, State House
Room 111
Boston, MA 02133
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
- Sign the online petition at http://www.change.org/petitions/massachusetts-state-legislature-repeal-the-tax-on-it-services
- 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
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