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

[Bruce Hooke]

True, and it will probably tip a few people but my suspicion is that most
places will consider the productivity lost from staff having to learn a new
operating system, and similar costs, to far outweigh the extra 6.25% on the
installation. Remember, if it was a tech business to start with they
wouldn't be paying someone to come in and install software.

Bruce

-----Original Message-----
From: Robert Heller [mailto:heller at deepsoft.com] 
Sent: Saturday, August 24, 2013 4:43 PM
To: Bruce Hooke
Cc: 'Robert Heller'; 'Scott Reed'; 'hidden-discuss'; Robert Heller
Subject: RE: [Hidden-tech] FW: Additional guidance from the
DepartmentofRevenue on Computer Software Tax

At Sat, 24 Aug 2013 16:02:39 -0400 "Bruce Hooke" <bghooke at att.net> wrote:

> 
> Keep in mind that packaged software has been taxable all along, so 
> nothing has changed there. What has changed is that "modifications" to 
> such software are now taxable. So, Office and Windows have been taxable
all along.

Yes, but now if you hire someone to install MS-Windows for you, the
*install* service is now taxable, where it wasn't before. So, asside from
the license costs (which remain the same), the cost of having someone
*install* MS-Office or MS-Windows has just gone up by 6.25%, where the cost
of having someone install CentOS or Ubuntu remains the same.  Thus the
'TCOC' gap between and MS-Windows and Lunux just got a little bit wider...
Oh, and that includes the cost of configuring, etc. as well.  I'm just
wondering: is this 6.25% 'increase' the straw the breaks the donkey's back?


> 
> Bruce
> 
> -----Original Message-----
> From: hidden-discuss-bounces at lists.hidden-tech.net
> [mailto:hidden-discuss-bounces at lists.hidden-tech.net] On Behalf Of 
> Robert Heller
> Sent: Saturday, August 24, 2013 9:46 AM
> To: Scott Reed
> Cc: hidden-discuss
> Subject: Re: [Hidden-tech] FW: Additional guidance from the 
> DepartmentofRevenue on Computer Software Tax
> 
>    ** Be sure to fill out the survey/skills inventory in the member's
area.
>    ** If you did, we all thank you.
> 
> 
> 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


 

-----
No virus found in this message.
Checked by AVG - www.avg.com
Version: 2013.0.3392 / Virus Database: 3211/6604 - Release Date: 08/24/13