Massachusetts Repeals Tax on Computer and Software Services

Wednesday, October 2nd, 2013

 
 
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Massachusetts
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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 The tax, which went into effect in July 2013, has been repealed with a retroactive repeal date effective July 31, 2013.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.

https://malegislature.gov/Bills/188/House/H3662

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.

http://www.mass.gov/dor/businesses/help-and-resources/legal-library/tirs/tirs-by-years/2013-releases/tir-13-17.html


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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 www.ttrus.com or call 866.578.8193.

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