Massachusetts Introduces Software Service Tax
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Massachusetts Introduces Software Service Tax
1–10 of 85 posts
Re: Massachusetts Introduces Software Service Tax
#2What a mess... So if I buy a SaaS product that requires some config on the providers end, is that taxable too?
Re: Massachusetts Introduces Software Service Tax
#3Is a plumber in Massachusetts required to charge tax on all services rendered, or only those that involve pre-made physical parts?
Is there a paralogous example from a different profession that we can use to gain insight into this new law?
Re: Massachusetts Introduces Software Service Tax
#4According to a friend of mine who is relatively knowledgeable about this law, it was originally intended to target enterprise companies that were essentially selling software for next to nothing and then charging like mad for the "installation and configuration" to avoid sales tax.
The wisdom of even that approach is debatable, but the actual language of the law is far from conveying that intent and is a total, indecipherable mess. No one has the remotest clue what is actually covered under the language of the law.
I'm part of a small software consultancy in MA, and we've now got 30 days to decide which of our customers this crazy language applies to, and which it doesn't. Is Django "pre-written" software? Does spinning up and customizing an instance count?
It's crazy town.
Re: Massachusetts Introduces Software Service Tax
#5Is a plumber in Massachusetts required to charge tax on all services rendered, or only those that involve pre-made physical parts? Is there a paralogous example from a different profession that we can use to gain insight into this new law?
No plumbers don't charge sales tax on services; neither do doctors, lawyers, dentists, or landscapers. Sensible states tax things they want to discourage like gasoline use or smoking. They don't tax people trying work more.
Re: Massachusetts Introduces Software Service Tax
#6What a mess... So if I buy a SaaS product that requires some config on the providers end, is that taxable too?
Taxachusetts
Re: Massachusetts Introduces Software Service Tax
#7According to a friend of mine who is relatively knowledgeable about this law, it was originally intended to target enterprise companies that were essentially selling software for next to nothing and then charging like mad for the "installation and configuration" to avoid sales tax. The wisdom of even that approach is debatable, but the actual language of the law is far from conveying that intent and is a total, indec…
I think the idea is a fairly reasonable one, taxing large enterprises for charging insane support/servicing fees. Their implementation of it sounds really crappy though.
Re: Massachusetts Introduces Software Service Tax
#8MA has so many make-work jobs who do absolutely nothing at least they could leave those of us trying to do something alone. I was talking to a guy who used to be a product designer for Brookstone, Polaroid and GM. He has an idea to create 100 simple products all manufactured within 100 miles of Boston.
He thought he would reach out to some MA economic development organization and let them know what he was doing. They got back to him right away, I forget which exact agency, to let him know they would not be able to provide any help. He was kind of miffed because he hadn't asked for anything - but now he knew they would not be able to help no matter what he might need.
I tried to look up the agency he contacted and I found these agencies:
Commonwealth Corporation
MassDevelopment
Mass. Office of Housing and Economic Development
Mass. Office of Business Development
Mass. Business Development Center
Mass. Small Business Development Center
Mass. Export Center
Mass. Office of International Trade & Investment
MassVentures
Mass. Growth Capital Corporation
Mass. Technology Collaborative
Mass. Technology Transfer Center
Mass. Clean Energy Center
Mass. Life Sciences Center
Commonwealth Marketing Office
Don't worry about any waste or duplication - the Mass. Office of Performance Management & Oversight was created with the job of making sure all these groups are working together.
Each of these places has dozens if not hundreds of employees with titles I can't even parody:
Executive Assistant to the Deputy Director
Program Assistant to the Director
Director of Cluster Development
http://www.masstech.org/meet-masstech/our-team/meet-our-staf...
All of these people standing by ready to fire back an email that they really can't be of any help
Re: Massachusetts Introduces Software Service Tax
#9Is a plumber in Massachusetts required to charge tax on all services rendered, or only those that involve pre-made physical parts? Is there a paralogous example from a different profession that we can use to gain insight into this new law?
No plumbers don't charge sales tax on services; neither do doctors, lawyers, dentists, or landscapers. Sensible states tax things they want to discourage like gasoline use or smoking. They don't tax people trying work more.
It seems ridiculous to charge only one profession for providing service, and it sounds like software people just have the worst lobbyists and the worst public image (plumbers are the iconic symbol of the "little guy" small business).
Here in Ontario it's much simpler (but steeper) - the harmonized provincial/federal sales and service tax is 13% on everything. Sales, service, you don't have to give a crap. There's a short list of exemptions for groceries and medical stuff.
Our taxes are high, but straightforward.
Re: Massachusetts Introduces Software Service Tax
#10According to a friend of mine who is relatively knowledgeable about this law, it was originally intended to target enterprise companies that were essentially selling software for next to nothing and then charging like mad for the "installation and configuration" to avoid sales tax. The wisdom of even that approach is debatable, but the actual language of the law is far from conveying that intent and is a total, indec…
I think the idea is a fairly reasonable one, taxing large enterprises for charging insane support/servicing fees. Their implementation of it sounds really crappy though.
What on earth about this is "reasonable?" How is this any different from other professional services? We're supposed to live in a free market society where customers have the choice to pay those "insane" fees if they want to. You're advocating that the government stick their noses into the business decisions of the private sector.
It's funny that this takes place at the site of the first tax rebellion.