Mass. tech tax repealed after less than 2 months

Published on NewsOK Modified: September 27, 2013 at 3:48 pm •  Published: September 27, 2013

BOSTON (AP) — The state's short-lived attempt to tax computer and software services came to an end Friday when Gov. Deval Patrick signed a bill repealing the unpopular tax after less than two months.

The governor's office announced the signing in a one-sentence release with no comment from Patrick.

The House and Senate voted this week to approve the bill repealing the 6.25 percent tax that was part of transportation financing package approved by lawmakers over the summer. The tax went into effect July 31 and drew intense criticism from technology companies that warned it would stifle innovation and cost jobs.

Patrick, who held a private meeting with business leaders and top lawmakers this month to discuss the so-called tech tax, had previously said he favored repeal but was worried how the state would make up the estimated $161 million the tax was expected to generate for the state in the current fiscal year.

The Legislature did not offer any alternative revenue source in the repeal bill. Democratic leaders pointed out that overall state tax collections were running higher than anticipated and would likely offset the loss from the tax.

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