CHICOPEE, Mass. (WWLP) - Tech business owners are threatening to move their businesses elsewhere, if Massachusetts lawmakers don't do something about the recently imposed Computer Software Sales Tax.
Lawmakers responded to business owners Tuesday, saying they will address the tax if it's a big problem for the industry. But many in the industry say that by the time enough evidence is gathered businesses will already be hurting.
The Sales and Use Tax on Computer and Software Services went into effect July 31st. The state hopes to generate $161 million annually to help fund the transportation system. It applies the states 6.25% sales tax to almost everything an IT company does. From designing a computer software system to everything in between such as simply removing a virus or updating someone's computer system. Douglas Gordon has his own computer service business, but is thinking of closing it up with the recent taxes.
"It's making me consider getting out. In terms of my customers, everybody’s asking where does it end in Massachusetts, your going after labor now. You know are you coming after my business next?” said Gordon.
Business leaders are campaigning to let voters in 2014 decide if the computer tax continues.