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House Repeals the Tech Tax; Will the Senate?

In Massachusetts, the controversial “Tech Tax” is still being debated. This past July, a transportation bill was passed that included a measure for adding a 6.25% tax on software and computer services in the state of Massachusetts. The highest such tax in the nation, the tech tax drew opposition from business owners across the state who contended that their ability to compete with businesses in neighboring states was significantly compromised by the hefty tax.

Apparently, the Massachusetts House of Representatives agrees: with an overwhelming vote of 156-1, the House voted to repeal the tech tax on Wednesday. “Our strong commitment to business and the innovation economy led to its repeal,” said House Speaker Robert DeLeo.

Today, the debate moves on to the Massachusetts Senate. Governor Deval Patrick has stated that he is open to supporting the tax repeal, but is also waiting to see how the House and the Senate propose to fill the hole in the budget left by the tech tax’s revenues. We will be sure to keep you posted as this story develops!

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