BOSTON (WWLP) - Massachusetts Republicans have filed legislation that repeals a 6.25 percent sales tax on all businesses that engage in computer software services.
“We are here today to take the necessary action to prevent damage and destruction to thousands of jobs across the Commonwealth of Massachusetts,” and Sen. Bruce Tarr (R-Gloucester).
Republicans made their announcement at a Boston web design company, Genuine Interactive – Where employers are freezing invoices because of confusion around the Department of Revenue’s interpretation of the law.
“The interpretation of the laws keeps shifting, so when the DOR first took the legislation, they said this is what it means, 14 days later they changed it, 21 days later they changed it again, so they’re creating confusion with us, but it’s also creating confusion with our clients,” said Genuine Interactive CEO John Grayson.
Grayson says that while they’ve been expanding their business, the tax makes them hesitant to hire new employees and makes headquartering in neighboring states more appealing.
The tech tax is part of Governor Deval Patrick’s plan to generate hundreds of millions of dollars in revenue for the state’s road and bridge repairs.
“We need funding for transportation and if there is to be a fix then we have to have the whole conversation, which is what do we replace it with?” said Patrick to reporters in August when asked about panic in the business community regarding the new revenue source.
Republicans have suggested using money from the state’s rainy day fund or online gaming revenues to replace the tech tax.
The Republican bill would retroactively repeal the tech tax that came into effect on July 31st.