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Multistate Tax Alert: Massachusetts Repeals Sales/Use Tax on Computer System Design Services


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Overview

On September 27, 2013, Massachusetts Governor Patrick signed H3662, repealing the tax on computer system design services and the modification, integration, enhancement, installation or configuration of standardized software, retroactively to the imposition date of July 31, 2013. This was emergency legislation, effective immediately upon signature by the Governor. The legislation provides that any vendor that collected and remitted the tax due on these services can file an application for abatement for a refund with the Massachusetts Department of Revenue no later than December 31, 2013. The bill directs the Department of Revenue to make the abatement forms available within 30 days of the effective date of the legislation. Upon receiving the abatement, vendors must refund the tax collected to their customers within 30 days. Similarly, vendors that collected the tax from their customers but have not yet remitted the tax to the department are instructed to refund the tax collected to their customers. The legislation further states that no person who failed to collect or pay the sales or use tax on computer and software services shall be subject to fines, penalties or fees.

Contacts

If you have questions regarding these Massachusetts law changes, please contact any of the following Deloitte Tax professionals.

Bob Carleo
Director
Deloitte Tax LLP, Boston
rcarleo@deloitte.com
(617) 437-2349
Mike Porter
Principal
Deloitte Tax LLP, Boston
mikeporter@deloitte.com
(617) 437-2607
Alexis Howe
Senior Manager
Deloitte Tax LLP, Boston
ahowe@deloitte.com
(617) 437-3379
Inna Volfson
Senior Manager
Deloitte Tax LLP, Boston
ivolfson@deloitte.com
(617) 437-3892


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As used in this document, “Deloitte” means Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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