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The Boston Globe

Business

Software, design tax plan for Mass. draws fire

Business group offers amendment to limit state levy

The Massachusetts Taxpayers Foundation wants state legislators to revise a proposed broad new tax on computer design and software services that Governor Deval Patrick would use to pay for transportation improvements.

The business group said it will ask lawmakers to limit the types of computer and software services that would be subject to the state’s 6.25 percent sales tax. As written, the proposed tax is so vague it would include all types of computer-related transactions and would end up generating significantly more than the $160 million a year estimated by the state Legislature, business leaders said.

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