[Hidden-tech] FW: Additional guidance from the Department ofRevenue on Computer Software Tax

[Robert Heller]

Wondering aloud: I wonder to what extent there will be presure for people to 
move away from (taxable) closed source to (non-taxable) open source solutions? 
Eg will the total 'cost of ownership' of MS-Windows / MS-Office go up enough 
to make the open source alternitives more attractive financially?

At Fri, 23 Aug 2013 21:40:31 -0400 Scott Reed <sreed at avacoda.com> wrote:

> 
> MIME-Version: 1.0
> 
>    ** Be sure to fill out the survey/skills inventory in the member's area.
>    ** If you did, we all thank you.
> 
> 
> 
> 
> 
> Thanks for the clarification. Have they updated the FAQ or is that 
> covered in another section?
> 
> On 8/23/2013 8:10 PM, Lynn Nichols wrote:
> > I do not agree that a website designer's services in building a Joomla 
> > or Drupal website would be taxable under the new law, at least 
> > according to the new clarification. They are both open source, as is 
> > WordPress. Excel and Access are NOT open source.
> >
> > -- 
> > Lynn Nichols
> > Starstruck Design
> > Gill, MA / 413.863.7752
> > lynn at starstruckdesign.com <mailto:lynn at starstruckdesign.com>
> > http://www.starstruckdesign.com
> > http://www.shopwesternmass.com
> >
> > On Aug 23, 2013, at 7:04 PM, Scott Reed <sreed at avacoda.com 
> > <mailto:sreed at avacoda.com>> wrote:
> >
> >>   ** Be sure to fill out the survey/skills inventory in the member's 
> >> area.
> >>   ** If you did, we all thank you.
> >>
> >>
> >> The following is lifted from the DOR's FAQ:
> >>
> >>     2.  What are modifications to prewritten software that are
> >>     taxable under the new law?
> >>
> >>     A.  Modifications to prewritten software that are subject to tax
> >>     under the new law are modifications to  software which is
> >>     licensed, sold or otherwise made available to more than one user,
> >>     where such prewritten software is modified for the use of a
> >>     specific customer.  The modification may be made either by the
> >>     original seller/licensor of the software or by a third party.
> >>
> >>     For purposes of this tax on modification, integration,
> >>     enhancement, installation or configuration of standardized
> >>     (prewritten) software, prewritten software *does not include*
> >>     proprietary code owned by the provider (seller) of the
> >>     modifications if that proprietary code is not separately licensed
> >>     to customers.
> >>
> >>     Custom application software (including custom software that
> >>     incorporates such proprietary code) that is designed to run on a
> >>     prewritten operating system is /treated as custom software and
> >>     not as a modification of the prewritten operating system software/.
> >>
> >> I interpret the second sentence to say that there is no tax on 
> >> original code as long as the modifications are not licensed to the 
> >> customer (i.e. as long as the customer is paying for the coder's time 
> >> and not for a license to use the coder's product).
> >>
> >> I interpret the third sentence to say that there is no tax on 
> >> original (unlicensed) code that uses prewritten, third party, 
> >> libraries and runs on prewritten OSs.
> >>
> >> This lets those that write code off the hook for the most part and it 
> >> helps clarify that the tax *does apply* to development within 
> >> standalone database frameworks like Excel, Access, Drupal, Joomla, 
> >> etc. where much of the development involves modification to an 
> >> underlying database.
> >>
> >> I wonder, however, if they tax bookkeeping services and, if not, how 
> >> is that different from working within these other database frameworks?
> >> _______________________________________________
> >> Hidden-discuss mailing list - home page: http://www.hidden-tech.net
> >> Hidden-discuss at lists.hidden-tech.net 
> >> <mailto:Hidden-discuss at lists.hidden-tech.net>
> >>
> >> You are receiving this because you are on the Hidden-Tech Discussion 
> >> list.
> >> If you would like to change your list preferences, Go to the Members
> >> page on the Hidden Tech Web site.
> >> http://www.hidden-tech.net/members
> 
> 
> MIME-Version: 1.0
> 
> _______________________________________________
> Hidden-discuss mailing list - home page: http://www.hidden-tech.net
> Hidden-discuss at lists.hidden-tech.net
> 
> You are receiving this because you are on the Hidden-Tech Discussion list.
> If you would like to change your list preferences, Go to the Members   
> page on the Hidden Tech Web site.
> http://www.hidden-tech.net/members
> 
>                    

-- 
Robert Heller             -- 978-544-6933 / heller at deepsoft.com
Deepwoods Software        -- http://www.deepsoft.com/
()  ascii ribbon campaign -- against html e-mail
/\  www.asciiribbon.org   -- against proprietary attachments