Politics & Government

Tech Community Seeks Repeal of Software Tax

Revenue from the new tax, which went into effect July 31, will go toward state transportation and infrastructure needs.

By Bret Silverberg

Massachusetts technology leaders have taken action against a new, unclear law that would require software business transactions to be taxable through the state’s sales tax.

Twenty Massachusetts business leaders have filed an initiative petition to repeal the new tech tax, according to a joint press statement Wednesday.

The petition comes after the state lawmakers voted July 24 to override Gov. Deval Patrick’s attempt to veto a bill that, along with increases to gas and cigarette taxes, implemented the inclusion of computer and software technology services to the state’s 6.25 percent sales tax.

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If the attorney general’s office signs off on the petition’s language, petitioners must get 68,911 voters’ signatures this fall, according to the statement. The petition must then be reviewed by state legislature to repeal, modify or take no action. After this, petitioners must obtain another 11,485 voters’ signatures by May 2014. Eventually, the petition will result in a statewide ballot question on Nov. 4, 2014.

The Department of Revenue is in the process of interpreting the application of the tax.

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Revenue from the new taxes, which went into effect July 31, will go toward transportation and infrastructure needs around Massachusetts. The package was the subject of a months-long debate between Patrick and the bill’s Senate and House creators on various aspects of the plan.


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