In The News: Taxes

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BIA to N.H. businesses: beware of Mass. ‘tech tax’

Aug 20 2013

By Jeff Feingold, New Hampshire Business Review

As previously reported on NHBR.com, the tax – which the Massachusetts Taxpayers Foundation calls the “most onerous computer and software services tax in the nation” – may be imposed on New Hampshire-based businesses that have a physical presence in Massachusetts and that provide services covered by the tax to Massachusetts customers.
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5 Myths Circulated By Memos In Massachusetts Legislature About Tech Tax

Aug 20 2013

By Sarah Kuranda, CRN

The House memo states that "over 30 states apply their sales tax to computer software in some fashion," a number that Carolyn Ryan, a policy analyst at the Massachusetts Taxpayers Foundation, said is misleading. According to her research, more than 32 states tax boxed software with similar tax rates to Massachusetts. However, if the services associated with that software are separated during billing, they are no longer taxable. "That's why we're much different," Ryan said. The memo went on to list seven states with "similar tax rates" on computer services, but Ryan said that, too, was misleading. Two of the states used to have the taxes but they were repealed more than five years ago.
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Democratic Senate members plan to take up tech tax in the fall

Aug 20 2013

By Andy Metzger, State House News Service / The Braintree Forum

Moore is not alone in expressing misgivings about the tax, which lawmakers estimated would raise $161 million annually, though Massachusetts Taxpayers Foundation President Michael Widmer claims it could raise as much as $500 million.
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Mass. state senator files bill to repeal software tax

Aug 19 2013

By Rob Marvin, Software Development Times

The biggest criticism of the tax is its overbroad nature. The 6.25% tax applies to a variety of computer-software related services such as modifying off-the-shelf software, configuring programs, and designing or developing websites. Yet the Massachusetts High Technology Council, in conjunction with the Massachusetts Taxpayers Foundation, estimated the tax could amount to a $500 million annual tax burden on the software industry.
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New Massachusetts tech tax hurts job creation, Pioneer Valley software companies consider court fight

Aug 19 2013

By Jim Kinney, The Republican

So vague that no one agrees on how much it will raise. The state estimates $160 million a year, but opponent Michael Widmer of the Massachusetts Taxpayers Foundation estimates $500 million. Widmer, in an essay published online, calls the tax the gravest threat imaginable to a tech sector that is producing jobs.
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On tax policy, Mass. looking more red than blue

Aug 18 2013

By Jay Fitzgerald, The Boston Globe

No matter the reasons, Massachusetts is turning increasingly to sales taxes when it needs money. The 2009 increase to 6.25 percent gave Massachusetts the 13th highest sales tax rate among states, according to the nonprofit Tax Foundation in Washington. This month, Massachusetts lawmakers also broadened the state sales tax to include computer and software services, sparking outcries that the sales tax was being expanded into new areas of the economy and harming the state’s technology services industry.
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Tarr targets tech tax repeal

Aug 17 2013

Gloucester Times

The tech tax will generate $161 million annually in revenue, according to Dempsey and Brewer, who have said they will monitor the revenues to ensure that they do not exceed that amount. But Massachusetts Taxpayers Foundation President Michael Widmer has warned that the tax could generate $500 million, and said he has repeatedly met with top lawmakers to share his concerns about its impact.
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Editorial: Legislature should repeal the tech tax

Aug 17 2013

Somerville Journal

The confusion extends to how much the tax would raise. Legislative leaders projected it would bring in $161 million in revenue, while the Massachusetts Taxpayers Foundation estimates the impact would be as high as $500 million.
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As push for repeal expands, Democrats defend tech tax

Aug 16 2013

By Andy Metzger, State House News Service / Pembroke Mariner

The tech tax will generate $161 million annually in revenue, according to Dempsey and Brewer, who have said they will monitor the revenues to ensure that they do not exceed that amount. Massachusetts Taxpayers Foundation President Michael Widmer has warned that the tax could generate $500 million, and said he has repeatedly met with top lawmakers to share his concerns.
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State Senator: Massachusetts Tech Tax 'Modernizes The Tax Code'

Aug 16 2013

By Sarah Kuranda, CRN

The tax has had the industry up in arms since it went into effect on July 31, extending the state's 6.25 percent sales tax to software services. Industry members complained about the tax's sudden implementation, lack of guidance and wide scope. It is the highest such tax in the nation, according to a publication by the Massachusetts Taxpayers Foundation.
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