Massachusetts Enacts 6.25% Sales Tax On "Prewritten" Software Consulting

First time accepted submitter marshallr writes "Technical Information Release TIR 13-10 becomes effective in Massachusetts on July 31st, 2013. It requires software consultants to collect a 6.25% sales tax from their clients if they perform 'computer system design services and the modification, integration, enhancement, installation or configuration of standardized software.' TIR 13-10 was published to mass.gov on July 25th, 2013 to provide the public a few working days to review the release and make comments."

Comments

Wow

[DeathToBill]

Six days from the announcement of a new tax to being required to collect it? Really? How many businesses can change their processes that quickly?

Re:Wow

[Penguinisto]

It may take about 5 minutes to change tax rates in software, but I suspect it'll take a hell of a lot more than five minutes to update pricing policy, sales processes (and processing), to revise revenue/profit forecasts, modify forms (to point out this new tax, so you don't lump it in with generic sales tax), get the finance folks up to speed...

Re:Only applies to prewritten software?

[gstoddart]

It also applies to Open Source software. And, what if you're not a reseller -- "you buy Windows, and I'll install and configure it".

Sadly, I'm just going to assume there will be all sorts of problems here -- because most of the time when lawmakers try to pass laws relating to technology, they fail miserably in their understanding of said technology and make a bigger mess of things.

Re:Elsewhere

[truthsearch]

That results in the poor paying proportionately more taxes than anyone else since they use almost all of their money to purchase necessities.