Massachusetts Governor Deval Patrick has gained the support of state lawmakers in promising to repeal the newly-passed software services tax. Included in a transportation bill that was passed earlier this summer, the new law extends a 6.25% sales tax – the highest in the nation – to software and computer services, including website design and customization of off-the-shelf software. The business and technology communities in Massachusetts have adamantly challenged this new tax, arguing that it will draw their business away to nearby states with a lower tax rate – or no tax rate at all – on software services.
As a result of the promised repeal, the Department of Revenue has extended the filing deadline from September 13 to October 20, 2013. “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.