Massachusetts – Computer Services Taxable

SALT Report 2769 – The Massachusetts Senate and House of Representatives have voted by a two-thirds majority to override Governor Deval Patrick’s veto of legislation that would impose sales tax on certain software and computer system designs.

Because of this, computer system design services as well as the modification, integration, enhancement, installation, or configuration of standardized software will be subject to sales and use tax effective July 31, 2013.  However, sales tax will not apply to data access, data processing, or information management services.

For purposes of this legislation, computer system design services includes the planning, consulting, or designing of computer systems that integrate computer hardware, software, or communication technologies and are provided by a vendor or a third party.

For Further Information

Massachusetts State Legislature – House Bill 3535, Laws 2013

Massachusetts State Legislature – House Bill 3581, Laws 2013