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

[Clarke Moore]

Great work Don and all of you that have been in contact with your state
representatives regarding this issue. This is a tax that will effect most
of us (we think) and that was obviously written with little to no input
from people that actually are involved in the industry it is being levied
against.

A wise man once told me that in business and in politics to get to the
truth of a matter to just "follow the money." In this case you have a
thriving industry in the commonwealth that the state sees as a goldmine to
provide extra tax revenue for bridges and roads that the politicians will
no doubt name after themselves or a donor in their district. They either do
not care or do not understand the effect that these taxes have on business,
big or small, and that these cost will be passed along to other businesses
(clients) who in turn raise their prices of goods & services to the end
consumer (who also gets to pay a 6.25% sales tax).

In the end they will still need more revenue because they will have driven
more successful businesses out of state to NH and other surrounding states
and they will find other industries to target. The lawyers will be the last
group left to target because lets face it, most of the legislature is made
of up lawyers and taxing their fellow lawyers just wouldn't be right.

Keep up the good fight and let me know how I can help in any way.

Clarke


On Thu, Aug 22, 2013 at 4:08 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.
>
>
>
> 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****
>
> (617) 626-3261****
>
> ** **
>
> [image: home_title]****
>
> ** **
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> ** **
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> ** **
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> ** **
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> ** **
>
> *From:* Don Lesser [mailto:dlesser at ptraining.com <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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-- 
Clarke Moore
Managing Director | Tortus Creative
413.531.8415 | http://www.tortus.com
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