Technology Taxes included as part of a transportation finance bill passed by Massachusetts legislators at the end of June could potentially cost technology users $500 million in additional taxes, according to a recent article in The Boston Globe. The tax would apply the 6.25% sales tax to “computer systems design services,” which is a vague definition that could be applied to many businesses that rely on third-party software vendors. The current version of the proposal defines computer design services as “the planning, consulting or designing of computer systems that integrate computer hardware, software or communication technologies and are provided by a vendor or a third party.” The transportation finance bill is intended to finance $500 million in improvements to Massachusetts’ transportation infrastructure, according to the article.
Many businesses are now speaking out against the bill, as it has the potential to impact many businesses in the technology sector; GraVoc released a position statement about this tax in May. We will continue to keep our customers informed of the situation and its potential impact.