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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. 

Source: Network Computing

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By kenyee on 3/26/2013 12:18:30 PM , Rating: 2
So I live in Taxachusetts and it really is that funny here.

The public transportation system keeps crying that it needs more money, but they do *NOT* count the income from signs plastered all over their buses/trains as "income". They hired people who basically stand at the end of the train platform to wave flashlights around (no lie) to let the front driver see if there are any people on the other end.

Barney Frank, the sleezy intern molesting politician who just retired gave his entire staff 22% (!!!) raises before he left. Ed Markey, who's running for Kerry's vacated seat gave his staff 21% raises. There was one other I can't remember who also gave 20%+ raises. But hey, it's not their money, so might as well throw it around even if we're in a "recession".

They cranked up their budgets like crazy during the dot.bomb and housing booms and barely trimmed it during the recession (much like the Feds).
This isn't the behavior of a government that serves the's the behavior of cancer. I'm all for improving the state like BostonGunner wants, but do it via one time spending like state bond issuing...not tolls that they claimed would be one-time but they kept (MA Pike) because they "needed" the money or tax increases that they claimed were "temporary to fix the state deficit" :-P

By elleehswon on 3/26/2013 1:36:48 PM , Rating: 2
+1's this guy. i too, live in taxachusetts and it is ridiculous. for the record, i voted for scott brown.

By Bostongunner on 3/26/2013 2:53:17 PM , Rating: 2
come on man we can disagree but there is no reason to use things that are untrue to make your point.
It's true the budget hasn't been cut as much as it should, but there is a reason for that. If you cut the budget too drastically during a recession as they did in Europe (it's call austerity)you end up making matter worst. More people on welfare, homeless, foodstamps, unemployed. There is a reason why MA was among the first state to come out of the Recession.
FOR THE RECORD, you need to take a look at the MA budget it could be youo misinform or not aware but LOCAL AIDS is down $1.7 billion over the last 3 decades (after adjusting for economic growth)
Non-education aid has declined by about $1.3 billion over the last 3 decades, and is currently at its lowest point in 30 years.

WHILE WE MIGHT NOT AGREE on how to improve things. YOU need to know your facts before you try to talk seriously how to fix things.

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