[Hidden-tech] New IT services tax in Massachusetts - constituent communication
William Loving
will at dedicationtechnologies.com
Wed Aug 14 17:17:36 EDT 2013
I've been corresponding a bit with Stan Rosenberg and my local Northampton rep Peter Kocut: I received the following email with forward from Brian Dempsey. I can't add an attachment to this so I've linked to the Word document he sent me here: http://dedicationtechnologies.com/dl/Computer_Services_QA.zip If you live in Northampton, consider responding to Pete directly on this.
---------------------------------
On Aug 14, 2013, at 4:46 PM, "Kocot, Peter - Rep. (HOU)" <Peter.Kocot at mahouse.gov> wrote:
Will, attached please find an overview of the IT tax, provided to me by the House Ways and Means Committee. Please review the analysis and get back to me with your feedback.
Pete
From:
Dempsey, Brian - Rep. (HWM)
Sent:
Wednesday, August 14, 2013 4:13 PM
To:
HOU-DL - HOUSE REPS
Cc:
HOU-DL - HOUSE STAFF; HOU-DL - HOUSE AIDES
Subject:
Computer Services Q&A.docx
Dear Colleagues,
Please find attached an updated question and answer sheet on the recently enacted computer software sales tax. I hope you find this helpful. Please do not hesitate to contact my office with any questions.
Sincerely,
Brian Dempsey
--------------------------------------------------
On Aug 13, 2013, at 12:54 PM, Reva Reck <reva at revareck.com> wrote:
> ** Be sure to fill out the survey/skills inventory in the member's area.
> ** If you did, we all thank you.
>
>
> A wise friend once told me, "Never assume malice when you can assume
> incompetence." While I do NOT believe our legislators are generally
> incompetent, I do think they don't really understand the technology services
> landscape. Should they have reached out? Absolutely. But sometimes you don't
> know what you don't know. And I think if we had an organization they could
> go to for input on these kinds of issues, they WOULD reach out. So we need
> to correct that informational vacuum.
>
> Through my work with WiredWest, I've worked with the western Mass
> delegation, including Steve Kulik, Paul Mark, Denise Andrews, Stan Rosenberg
> and Ben Downing. They have been really fantastic on internet connectivity
> issues, and they understand the importance of the technology sector to our
> economy. But they clearly don't understand what it's like to be small
> technology service providers, and how difficult this law is for us. So we
> need to reach out to them and explain, but I'm concerned that the tone of
> this discussion is very negative. Aside from the fact that it's much easier
> to listen and learn if the material is presented in a neutral manner, I also
> feel strongly that they don't deserve to be yelled at.
>
>
> Reva Reck
> Reva at RevaReck.com
>
>
> -----Original Message-----
> From: hidden-discuss-bounces at lists.hidden-tech.net
> [mailto:hidden-discuss-bounces at lists.hidden-tech.net] On Behalf Of Jan
> Werner
> Sent: Monday, August 12, 2013 2:41 PM
> To: Jeff Rutherford
> Cc: Hidden-Tech Tech
> Subject: Re: [Hidden-tech] New IT services tax in Massachusetts -
> constituent communication
>
> ** Be sure to fill out the survey/skills inventory in the member's area.
> ** If you did, we all thank you.
>
>
> First, we need to acknowledge the need to raise revenue to pay for
> infrastructure repair, but at the same time, we have to make a clear
> case that this is an act of cowardice on behalf of a legislature that is
> trying to duck its responsibility.
>
> Second, we need to enlist the support of other groups by convincing them
> that if they allow this to pass, they could be next in line to be picked
> off (First, they came for..., then they came for....).
>
> From the DOR web site, one finds that the MA sales tax applies to
> tangible goods and certain telecommunication services, clarified as follows:
>
> "Generally, the tax on the sale or use of telecommunication services is
> a tax on the transmission of messages or information by various
> electronic means but not on the sale or use of information itself."
>
> This new measure changes that to apply the tax to information itself. It
> should be pointed out to content providers, and in particular to members
> of the press, that this sets a precedent, which if allowed to stand,
> will make it easier for them to be targeted the next time.
>
> Jan Werner
> _________________
>
>
>
>
>
>
>
>
>
>
>
>
>
>
> Jeff Rutherford wrote:
>> I agree with your assessment Jan, and I said as much in my reply back to
>> Stephen Kulik. I basically said it doesn't escape me that the
>> legislature decided to target an industry with very little political
>> clout or organization.
>>
>> So Jan, what would you suggest to ratchet up the pressure - and as you
>> said - convince these legislators that many of the people who voted for
>> them last time will actively organize to defeat them in the next
>> election. And, you may disagree, but I think it is important to let
>> these represetatntives know - as applicable that these complaints are
>> coming from people who did vote for them. Otherewise, it's easy for them
>> to dismiss these complaints as some of the general noise these days in
>> the media, etc. about right-wing groups and constituents complaining
>> about taxes.
>>
>> I know I've said it before. But it still amazes me that the legislature
>> decided to target a bright spot in the state economy - the software and
>> digital industry. But, as you said, they targeted the group that they
>> thought would offer minimal resistance and no organized oppossition.
>>
>> Jeff
>>
>> On Monday, August 12, 2013, Jan Werner wrote:
>>
>> This is a classic constituent brush-off form letter.
>>
>> Note the statement:
>>
>> "As you know, the legislature scaled back governor Patrick's much
>> more expansive tax proposal that he submitted in January. Our
>> intent was to craft something more limited and narrower in scope."
>>
>> It is clear that our fearless legislators, in a panic to raise at
>> least some money to fund repairs to our crumbling infrastructure,
>> looked to find a target that would cause the least amount of
>> blowback at the polls in the next election. Hey! How about geeks?
>>
>> I doubt we will see any reform unless representatives can be
>> convinced that this particular tax could galvanize enough voters to
>> jeopardize their re-election. That will take a lot more coordinated
>> effort than I have seen so far.
>>
>> Jan Werner
>> ______________
>>
>> Jeff Rutherford wrote:
>>
>> ** Be sure to fill out the survey/skills inventory in the
>> member's area.
>> ** If you did, we all thank you.
>>
>>
>>
>>
>> Response from Rep. Stephen Kulik. I encourage everyone to
>> contact state
>> legislators about this tax. They need to hear from a lot of
> people!
>>
>> Jeff Rutherford
>> 413-475-0087
>>
>> Begin forwarded message:
>>
>> *From:* "Kulik, Stephen - Rep. (HOU)"
> <Stephen.Kulik at mahouse.gov
>> <mailto:Stephen.Kulik at mahouse.gov>>
>> *Date:* August 8, 2013, 10:05:40 PM EDT
>> *To:* Jeff Rutherford <jeffrutherford at gmail.com
>> <mailto:jeffrutherford at gmail.com>>
>> *Subject:* *RE: New IT services tax in Massachusetts -
>> constituent
>> communication*
>>
>> Jeff,
>>
>> Thanks very much for sharing your concerns about this. As
>> you know,
>> the legislature scaled back governor Patrick's much more
>> expansive tax
>> proposal that he submitted in January. Our intent was to
> craft
>> something more limited and narrower in scope. I am aware of
> the
>> concerns that have been raised by some in the business
>> community in
>> the past few weeks. We are looking at these concerns very
>> carefully,
>> as we do disagree on some of the interpretations being
>> talked about.
>> If we have created something that was not our intent, we
> have
>> promised to revisit and change it. It is certainly not our
>> intent to
>> raise $500 million as some claim, and to harm our tech
>> sector. Our
>> estimate is that this will raise about $160 million, and
>> apply to a
>> limited number of services. This will be clarified in the
>> coming
>> weeks as DOR writes the regulations. This is a work in
>> progress, so
>> stay tuned, and I appreciate your input.
>>
>> Best,
>>
>> Steve
>>
>> */Rep. Stephen Kulik/*
>>
>> /First Franklin District/
>>
>> Vice Chairman, House Ways & Means Committee
>>
>> State House, Room 238 1 Sugarloaf Street
>>
>> Boston, MA 02133 South Deerfield, MA 01373
>>
>> 617-722-2380 413-665-7200
>>
>> Email: Stephen.Kulik at mahouse.gov
>> <mailto:Rep.Stephenkulik at hou.state.ma.us>
>>
>>
> ------------------------------__------------------------------__------------
>> *From:* Jeff Rutherford [jeffrutherford at gmail.com
>> <mailto:jeffrutherford at gmail.com>]
>> *Sent:* Wednesday, August 07, 2013 3:12 PM
>> *To:* Kulik, Stephen - Rep. (HOU)
>> *Subject:* New IT services tax in Massachusetts - constituent
>> communication
>>
>> Representative Kulik,
>>
>> I'm a resident of Conway, MA. I have worked in public
>> relations for
>> digital companies for the past 16 years. I'm writing you to
>> strongly
>> urge you to do everything within your power to stop the new IT
>> services tax immediately. I don't think you or any of the
> other
>> legislators realize the damage you've already caused.
>>
>> The IT and information economy is going to be the driver of
> the
>> American economy for many years to come. By passing the new IT
>> services tax, you've basically shut down Massachusetts from
>> thriving
>> as a state in the future. Venture capitalists are now
>> re-considering
>> their future investments in Massachusetts digital companies.
>>
>> I understand that you get a lot of passionate emails and
>> contact from
>> constituents. Again, I urge you to take this very, very
>> seriously. I
>> think because of the legislature's lack of understanding of
> the
>> software business - you've just fired the first shot in
>> crippling the
>> state's IT economy. I'm not saying that out of hyperbole.
>> I'm very
>> serious. Damage has already been done, and the legislature
>> HAS to
>> repeal this tax immediately.
>>
>> Here are some additional points:
>>
>> This tax was levied on software and IT services as part of a
>> transportation bill. In fact, there are many IT and
>> software-related
>> companies in Massachusetts whose employees work from home on
>> a regular
>> basis - or the companies are virtual companies where every
>> employee
>> works from home. IT services and software companies should
>> not bear
>> the responsibility for funding a transportation
>> infrastructure that
>> their companies often don't use - especially when compared
>> with other
>> industries within the state.
>>
>> This bill was clearly written by someone who does not
>> understand the
>> information economy. The bill is confusing, opaque, arcane,
> and
>> clearly written by someone who doesn't understand the IT
>> economy. If
>> the legislature wanted to tax IT and software services in
>> Massachusetts, why didn't they have the decency to hire a
>> law firm
>> familiar with the industry to write the legislation? The
>> fact that the
>> legislature didn't take that step clearly proves that the
>> Massachusetts legislature doesn't respect or care much about
> an
>> industry that is vitally important to the future of the
>> state economy.
>>
>> The Massachusetts legislature and governmental organizations
>> need to
>> decide - do they want Massachusetts to be competitive in the
>> information economy? By passing this bill, the answer is
>> clearly NO.
>> Venture capital remains a huge driver of investment in IT
>> startups.
>> The Massachusetts legislature waved a huge red flag for VCs
>> when they
>> passed this bill. That flag currently reads - DO NOT INVEST IN
>> MASSACHUSETTS' DIGITAL START UPS - spend your money in
>> Silicon Valley
>> or Chicago or New York City. Do not invest in Massachusetts,
>> because
>> the state is being administered by legislators who are going
>> to pass
>> regulations hampering IT businesses - regulations written by
>> people
>> who don't understand (or care to understand) your industry.
>>
>> On a personal level, I'm flabbergasted by this tax. Sure,
>> you can make
>> lots of arguments about the revival of small manufacturing
>> and lots of
>> other industries. However, the impact of the IT and
> information
>> economy is only going to grow. IT and software will
>> eventually impact
>> almost every single industry - agriculture, healthcare,
>> manufacturing,
>> etc. The cities and states that create hospitable
>> environments for IT
>> and software companies will thrive in the future - the
>> states who tax
>> an IT industry it doesn't understand will not thrive.
>>
>> If Massachusetts wants its economy to grow, and the state's
>> economic
>> developments are sincere, it needs to do everything it can
>> to increase
>> the growth of the IT industry and IT investments within the
>> state.
>> This tax is the wrong idea at the wrong time.
>>
>> Please take this seriously and repeal the IT services tax
>> immediately.
>>
>> Sincerely,
>>
>>
>> Jeff Rutherford
>> PO Box 714
>> Conway, MA 01341
>> 413-475-0087
>>
>> jeffrutherford at gmail.com <mailto:jeffrutherford at gmail.com>
>>
>> G+ <https://plus.google.com/__117757910488771719712
>> <https://plus.google.com/117757910488771719712>> I Twitter
>> <https://twitter.com/__JeffRutherford
>> <https://twitter.com/JeffRutherford>> I Blog
>> <http://jeffrutherford.com/> I LinkedIn
>> <http://www.linkedin.com/__profile/view?id=121886
>> <http://www.linkedin.com/profile/view?id=121886>>
>>
>>
>>
>>
>>
>>
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>>
>> --
>> Jeff
>>
>> Jeff Rutherford
>> 413 475-0087
>> www.jeffrutherford.com <http://www.jeffrutherford.com>
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--
William M. Loving
Dedication Technologies, Inc.
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Amherst, MA 01002-3304 USA
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Email: will at dedicationtechnologies.com
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