[Hidden-tech] IT tax coming -- did you know ?

[Tom Novelli]

Wow, I've heard noises in the news for a few months, but I didn't expect
this nonsense to be signed into law.  I do some IT consulting on the side,
and the wording leaves no doubt that this tax applies to me.  What a pain.
 When I started, I looked into collecting sales tax on parts, but it was
such a nuisance that I opted to have clients reimburse me at cost or do
their own purchasing.  I'd quit if I'd had a few months warning, but now I
have work lined up, and my current programming endeavor isn't generating
income yet (and when/if it does it'll be overtaxed as well).

I'll have to raise my rates ~10% to cover paperwork costs, so my clients -
primarily in healthcare -  will see a 15-20% increase.  Nice going,
legislative geniuses.  Most businesses will react by skimping on IT
services.  I think I'm screwed.  I'd leave Massachusetts now if I could
sell my house, although foreclosure is definitely an option.  Screw this
state!

Here are the changes pertaining to computers/software in context with the
existing law:

1. Adds this definition:

“Computer system design services”, 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.

2. Expands the definition of "services" (NEW TEXT IN CAPS)

“Services”, a commodity consisting of activities engaged in by a person for
another person for a consideration; provided, however, that the term
“services” shall not include activities performed by a person who is not in
a regular trade or business offering his services to the public, and shall
not include services rendered to a member of an affiliated group, as
defined by section 1504 of the Internal Revenue Code, by another member of
the same affiliated group that does not sell to the public the type of
service provided to its affiliate, OR DATA ACCESS, DATA PROCESSING OR
INFORMATION MANAGEMENT SERVICES; and provided further, that the term
services shall be limited to the following itemS: telecommunications
services, COMPUTER SYSTEM DESIGN SERVICES AND THE MODIFICATION,
INTEGRATION, ENHANCEMENT, INSTALLATION OR CONFIGURATION OF STANDARDIZED
SOFTWARE.  Nothing herein shall exempt from tax sales of tangible personal
property subject to tax under this chapter.
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