Tax Alert

REPEALED: Massachusetts Sales and Use Tax on Computer and Software Services

September 27, 2013

Governor Patrick today signed into law the repeal of the Massachusetts sales and use tax on certain “computer and software services”. The repeal is effective back to July 31, 2013, the date the tax first became effective.

The Massachusetts Department of Revenue will issue guidance with regard to refunds and abatements.

The repeal has no effect on the application of the sales and use tax to other sales. For example, sales of prewritten software and telecommunications services remain subject to tax.

Please contact Chip Wry to learn more about how these tax changes affect your business.

This Tax Alert provides general information only. It is not intended to constitute legal or tax advice and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending any transaction or matter addressed herein.

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