Massachusetts Tax Proposal Could Affect Cloud Computing Services
March 26, 2013 7:16 AM
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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.
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RE: aka, "we need more revenue so we need to find other suckers to tax"
3/26/2013 2:53:17 PM
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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