[Hidden-tech] FW: IT Sales Tax - Response from DOR

[Don Lesser]

Here is the response from the DOR.  I have included the entire text to
provide a context for this letter.

 

Based on this response, I would assume that DOR will cast as wide a net as
possible in collecting the new tax and that any assurance of the DOR
"interpreting this narrowly" will use a definition of narrowly that is far
more broad than I would use.

 

 

 

Don Lesser

Pioneer Training, Inc.

139B Damon Road, Ste 8

Northampton, MA 01060

(413) 387-1040

(413) 586-0545 (fax)

dlesser at ptraining.com

www.ptraining.com

 

From: Lauper, Edward [mailto:lauper at dor.state.ma.us] 
Sent: Thursday, August 22, 2013 2:43 PM
To: 'Don Lesser'
Cc: Dailey, Mark (SEN); Fernandes, Joaquim; Fatale, Michael
Subject: RE: IT Sales Tax - Response from DOR

 

Don,

 

Your question was forwarded to the DOR Rulings and Regulations Bureau.  This
is a link to the latest guidance posted on the DOR website:
http://www.mass.gov/dor/utility/recent-tax-changes.html

 

In answer to your specific question, customization of prewritten programs
such as Microsoft Access and Microsoft Excel is a taxable service under the
new statute, whether the customization is incorporated into the original
prewritten software or downloaded as a plug in or macro.  

 

Not sure I understand your second question, "At what point does the
purchased software environment become a modification of purchased software?"
Purchased prewritten software, such as Access and Excel, have been taxable
regardless of the method of delivery (including electronic download) since
2006.  What is new since July 31, 2013 is that customization/modification
and installation of that prewritten software is now taxable as well.  

 

I hope that clarifies; if not let me know.  This e-mail response is an
"information letter" within the meaning of the Letter Ruling Regulation, 830
CMR 62C.3.2.  It is intended to provide general information such as the
potential applicability of DOR public written statements or well-established
principles of tax law, but it is not intended to provide authoritative
guidance on the application of the tax laws to a specific set of facts.
This response is not a "ruling" or "letter ruling" that is legally binding
on the Department.

 

Ted Lauper

Deputy Chief

Rulings and Regulations Bureau

Massachusetts Department of Revenue

100 Cambridge Street

Boston, Massachusetts 02114

Lauper at dor.state.ma.us <mailto:Lauper at dor.state.ma.us> 

(617) 626-3261

 



 

 

 

 

 

From: Don Lesser [mailto:dlesser at ptraining.com] 
Sent: Friday, August 16, 2013 3:09 PM
To: Dailey, Mark (SEN)
Subject: RE: IT Sales Tax

 

Thank you and Senator Rosenberg for this quick reply.

 

The main outstanding issue I have is this:

 

o   Custom software NOT based on other prewritten software, written to one
customer's specifications

 

We develop custom programs for clients using Microsoft Access and Microsoft
Excel. Is an Excel macro considered enhancement of prewritten software? Is
an Access database? At what point does the purchased software environment
become a modification of purchased software?

 

Don Lesser

Pioneer Training, Inc.

139B Damon Road, Ste 8

Northampton, MA 01060

(413) 387-1040

(413) 586-0545 (fax)

dlesser at ptraining.com

www.ptraining.com

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