Mass Gov. kills computer tax
Gov. Deval L. Patrick said he no longer supports a controversial new computer software services tax that has raised issues of opposition from the state’s technology community and spawned numerous attempts to repeal it.
“It’s time for it to go,” the Governor told the Boston Globe. “I’m persuaded that the impact to our reputation is too problematic. We’ve worked really, really hard to establish ourselves as innovation hub in the world, and we ought not do anything that compromises that.”
Patrick himself originally proposed the computer software tax back in January to help pay for major improvements to the state’s crumbling transportation systems. Now the Great and General Court has established tolls on the western section of The Massachusetts Turnpike beginning Oct. 15th.
Many executives said they had no idea lawmakers were even considering it and complained they felt blindsided by a political establishment that often touts their industry as a cornerstone of the Massachusetts economy.
The measure would have applied to the state’s 6.25 percent sales tax to a variety of computer software related services, including such common business practices as modifying off-the-shelf software, configuring programs, and designing or developing websites.
People in technology companies complained that it was so broadly written that it would end up taxing many services that had become key to Massachusetts’ economic growth, and would cost businesses far more than the $160 million annually estimated by the state.
Posted by George C. Jordan III
on September 12, 2013. Filed under News,State News.
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