Massachusetts Tax Proposal Could Affect Cloud Computing Services
March 26, 2013 7:16 AM
comment(s) - last by
State of Massachusetts may impose a tax on website design and other services
The governor of the state of Massachusetts has proposed a new tax within the state that could apply to cloud-based services. If the Massachusetts state legislature approved the governor's plan, the state tax on "canned software" would be expanded covering some elements of cloud computing.
The proposal is for a tax of 4.5%, which is lower than the state 6.25% sales tax. The tax plan does call for an exemption for people that store music or digital books on the cloud. According to members of Governor Deval Patrick's administration, the tax would bring in an estimated $265 million during 2014.
"We need our tax code to catch up with the way that technology is affecting everyone in their daily lives," said David Sullivan, legal counsel for the Executive Office for Administration and Finance in WBUR's story.
The tax expansion would cover custom-designed software and some services that run in the cloud. The custom software design services would include things such as website designs, Java software, PHP coding, and other custom software coding. The tax expansion would also apply the 4.5% tax to the cost of hosting a website and bandwidth needed to operate the website.
Some of the details on the service are still unknown. However, if the tax applies to hosting, bandwidth, storage, security, and other services it would potentially be applied to anything a company uses is not hosted on the premises.
This article is over a month old, voting and posting comments is disabled
3/26/2013 11:09:41 AM
What State are you from?
Don't get me wrong I don't like to pay more taxes, and I am not sure about this proposal being put here in this article.
Also a lot services that are offered in States like NY and MA are not offered in a lot of places in the South particularly places with no state income taxes that's just a fact! you look at programs for disables individuals, to substance abuse etc There is no way around it, it's like night in day.
3/26/2013 12:05:34 PM
Have you seen the quality of public higher ed in states like MA or NY vs Virginia or Texas?
Let me know when UMass gets even a $1 bil endowment.
3/26/2013 12:13:15 PM
Well, when you pay people to be disabled or addicted to drugs, you will get more of them. I believe that the number of people getting disability from the feds is 16 million. States actually employ private firms to try to get their residents to move off of welfare (state funded) to disability (federally funded). The firms get a few grand per person they shift. The feds don't really complain, they want this situation since now these "disabled" people are dependent on the federal money and will keep those in power that promise to keep the gravy train rolling.
"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il
LinkNYC Terminals to Blanket New York City With Free WiFi, Free Calls, and Ads
November 17, 2014, 6:50 PM
Microsoft is Open-Sourcing Most of .NET, Adding OS X and Linux Support
November 12, 2014, 8:27 PM
Home Depot Lost 53 Million Emails, Blames Windows, Buys Execs New Macs
November 9, 2014, 5:00 PM
Former NSA Lawyer: If Google, Apple Encrypt User Data, They’ll Wither on the Vine Like Blackberry
November 6, 2014, 12:15 PM
Report: AT&T Eyeing $40B DirecTV Purchase
May 1, 2014, 8:00 AM
WebOS Class Action Settlement Costs HP $57 Million
April 1, 2014, 10:22 AM
Most Popular Articles
WSJ Report Implies That Google Leveraged Lobbying to Kill Antitrust Abuse Probe
March 25, 2015, 5:37 PM
HTC One M9 Launches Tomorrow Overseas
March 20, 2015, 2:33 PM
Samsung, Dell, Pegatron to Preinstall Microsoft Office 365 on Android Devices
March 23, 2015, 4:02 PM
Half a Billion Dollars of U.S. Weaponry May be Lost to al-Qaeda, Rebels in Yemen
March 23, 2015, 2:12 PM
Windows 10 Build 10041 Rolls Out: What's New in Pictures Pt. 1
March 19, 2015, 2:45 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information