[Hidden-tech] IT Sales tax on writing a website vs writing a program?

[RickF@incommn.com]

I touched on this in my INCOMMN blog today:  I think it's correct to note that this "Tech Tax" is the first service-only sales and use tax.  The Massachusetts General Laws had, until now, stated that the sales and use tax was applied to tangible property and some telecommunications. Other professional services --- including insurance, accounting, and hair cutting, for example --- are not taxable. 

In reading the explanation provided by Senator Rosenberg, it seems to me that this is still the case.  And as Don Lesser points out, this suggests that the legislation was created by people who don't understand the words and phrases they're using. Or, perhaps, they fully understand, and want to start moving us toward accepting service taxes. 

Rick

Sent from my iPad

Rick Feldman
InCommN LLC
Interactive Communities Network
RickF at incommn.com
Http://incommn.com
413-570-0223

On Aug 16, 2013, at 8:48 PM, "Don Lesser" <dlesser at ptraining.com> wrote:

>   ** Be sure to fill out the survey/skills inventory in the member's area.
>   ** If you did, we all thank you.
> 
> 
> 
> The problem is that depending on your reading of the law, are you 
> "customizing commercial software" or writing "custom software?" The first 
> is taxable, the second not. The problem is that unless you write in machine 
> code (and even then) are you using a software tool (C#, PHP, "raw" HTML) or 
> customizing a program (MS SQL, PeopleSoft, MS Access, Excel VBA, 
> WordPress)? We all know what we want to be the interpretation. Is 
> customizing adding additional code to the actual application or is it using 
> the GUI or query/programming language? They have yet to rule on it.
> 
> Please understand, I am no apologist for the law. I am only trying to 
> interpret it. The real issue is whether the law is discriminatory, whether 
> it will negatively affect a vital Mass industry, whether it was so poorly 
> understood by the legislature that in thinking they were going to be less 
> restrictive than the governor that they did not understand what the law 
> would cover, and, whether in rushing to implement the law in 9 days, they 
> missed the opportunity to have the IT community weigh in and ask these 
> questions before the law went into effect instead of after.
> 
> 
> -------- Original Message --------
>> From: "Bobbi Melville" <bobbimelville at gmail.com>
>> Sent: Friday, August 16, 2013 8:18 PM
>> To: "Hidden-Tech Tech" <hidden-discuss at lists.hidden-tech.net>
>> Subject: [Hidden-tech] IT Sales tax on writing a website vs writing a
> program?
>> 
>> ** Be sure to fill out the survey/skills inventory in the member's area.
>>   ** If you did, we all thank you.
>> 
>> 
>> 
>> Thanks, Don, for posting the official "clarification" of the new tax.
> I'm
>> still confused, though. If I write a custom website for an organization,
>> using html, css, and perhaps a javascript or two - is that taxable?
>> 
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