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Print 36 comment(s) - last by rvd2008.. on Mar 27 at 10:58 AM

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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RE: Heh
By ShapeGSX on 3/26/2013 12:55:52 PM , Rating: 1
Indeed, I am dependent on paved roads, police for public safety, public schools, fire departments, etc...

I didn't want that stuff to go un-funded. So I voted to keep the tax, rather than spinning the state I live in into complete disarray.

The proponents of this idea had no plan whatsoever.

I'm not opposed to cutting waste. And hell, there is tons of it in MA. But at least be responsible with how it is done.


RE: Heh
By FITCamaro on 3/26/2013 1:39:33 PM , Rating: 2
Funny...several states do just fine without an income tax.


RE: Heh
By ShapeGSX on 3/26/2013 1:49:46 PM , Rating: 1
Like New Hampshire. They don't have income tax, nor do they have sales tax. But they do have crazy high property taxes. While my property tax is 1.8%, in NH the property tax can be over 30%, depending on where you live.

The money comes from somewhere.


RE: Heh
By jeffkro on 3/26/2013 7:29:31 PM , Rating: 2
Wrong this is not an all things are equal argument. The fact is some states have outrageous spending habits compared to others.


RE: Heh
By bsd228 on 3/26/2013 3:59:51 PM , Rating: 2
> Funny...several states do just fine without an income tax.

with a sales tax, or property taxes, or if they're fortunate and living in the now, extraction taxes on oil or timber or other natural resources. It's pretty easy to balance the budget in Alaska and even send money to the residents...now.


RE: Heh
By FITCamaro on 3/26/2013 4:14:14 PM , Rating: 2
Try Florida or Texas.


RE: Heh
By rvd2008 on 3/27/2013 10:58:11 AM , Rating: 2
Texas has gas and oil industry bringing in billions of dollars. You don't know about that?


"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer











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