In The News: Taxes

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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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Editorial: Time for Legislature to listen on software tax

Aug 16 2013

The Eagle Tribune

This week, a cadre of business and political leaders, including representatives from the Massachusetts Taxpayers Foundation and major regional employers like Peabody’s Analogic, gathered in Danvers to try to figure out how to respond to the Legislature’s newest and most addle-brained tax.
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Block Calls for Rhode Island Recruitment of MA Tech Firms

Aug 15 2013

GoLocalProv

Rhode Island does not levy a tax on software services, giving it a clear advantage over its neighbor which will soon collect a 6.25% sales tax on a broad range of services. According to the Massachusetts Taxpayers Foundation, Massachusetts now has the highest tax on computer services in the country. "For years, we have watched businesses leave Rhode Island, lured away by a more favorable business climate in Massachusetts," said Block. "Now we have the opportunity to reverse that trend and start bringing some businesses back. If you're looking for a way to fill vacant office space such as the Superman building, this is one great way to do it."


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New Massachusetts Software Services Tax Highest In Nation

Aug 14 2013

By Sarah Kuranda, CRN

The legislature predicts that the Massachusetts tax, which took effect July 31, will raise $161 million as part of a bill to fund transportation in the state. However, Michael Widmer, president of the Massachusetts Taxpayers Foundation, said he predicts it will raise closer to $500 million, if not more, based on his calculations with Department of Revenue data. "Its impact on them is going to be greater [than predicted]," Widmer said. "This is an equal opportunity tax. It's absolutely going to impact all sectors of every side."
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