Massachusetts Repeals Tax on Computer and Software Services

Wednesday, October 2nd, 2013


Massachusetts' Governor Deval Patrick has recently signed legislation repealing the state's sales tax on computer and software services. The tax, which went into effect in July 2013, has been repealed with a retroactive repeal date effective July 31, 2013.

Taxpayers who remitted tax on the following services may submit an application for abatement by December 31, 2013: computer system design services, data access, data processing or information management services, and the modification, integration, enhancement, installation or configuration of standardized software. If a retailer is granted abatement, i.e. a reduction of the amount of tax assessed on their sales, the retailer must make reasonable efforts to refund the abated amounts to the original customers who paid the tax.

Update: The Massachusetts Department of Revenue has issued a technical information release for vendors seeking abatement for tax collected on these services. The release sets out the steps vendors should take by December 31, 2013 to file an abatement application with the state.

About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

Wayfair Outcome: Do I have to Collect Sales Tax Now?

Friday, June 22nd, 2018 -Out-of-state sellers that do not have a physical presence in states where they sell goods or services are now ...

Arkansas Exempts Feed and Medicine used for Beekeeping...

Wednesday, June 20th, 2018 -The Arkansas Department of Finance and Administration recently ruled that purchase of sugar syrup, other feeds...

Exemption for Data Center Projects in Georgia

Monday, June 18th, 2018 -Georgia recently signed into a law a new sales and use tax exemption for high-technology data center projects ...

Louisiana Enacts Economic Nexus Law

Monday, June 18th, 2018 -The Louisiana legislature recently enacted an economic nexus law. Economic nexus laws require certain sellers ...

Repair Parts for Mining Equipment Exempt in Virginia

Wednesday, June 13th, 2018 -The Virginia Tax Commissioner recently addressed whether bottom rollers and drop hangers were exempt as repair...

Certain Out-of-State Sales Taxable in Kentucky

Monday, June 11th, 2018 -Effective July 1, 2018, certain out-of-state sellers without a physical presence in Kentucky will be required ...