You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

Around the Region

State delays collection of software services tax

Tech tax likely to be repealed

Massachusetts officials will delay collecting payments for the recently passed software services tax, after state lawmakers joined Governor Deval Patrick in promising to repeal the controversial measure in the coming weeks.

The first payment by eligible taxpayers was due Friday. The Department of Revenue has extended the first filing deadline to Oct. 20.

Continue reading below

“This extension is designed to minimize administrative burden on vendors during a period when the Legislature is likely to be considering repeal of these new tax provisions,” said Amy Pitter, Massachusetts commissioner of revenue, in a statement posted Monday on the commission’s website.

Beacon Hill leaders have all called for abolishing the tax, which has been the subject of a noisy protest by the business and tech communities since it was passed in July as part of a larger transportation financing bill. The financing package extended the 6.25 percent sales tax to many software and computer services, such as modifying off-the-shelf computer programs or designing websites. Lawmakers could vote on a repeal bill in the first official session of the Legislature this fall.

Since the tax took effect on July 31, the Department of Revenue has issued more than 50 clarifications about it and received more than 200 comments from businesses opposing the levy.

The department has yet to issue final regulations for collecting the tax.

Michael B. Farrell can be reached at
Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of