[Hidden-tech] IT Sales Tax Update

[Don Lesser]

Repeal looks more and more certain. This from the DOR. 

 

The key point: reporting and payment for the IT Sales Tax is delayed until
10/20/13: “This extension is designed to minimize administrative burden on
vendors during a period when the Legislature is likely to be considering
repeal of these new tax provisions.”

 

Technical Information Release 13-14

 

Extension of Due Date for First Reporting of 

Sales and Use Tax on Computer and Software Services 

 

TIR 13-10 announced provisions in An Act Relative to Transportation Finance,
St. 2013, c. 46, which amended Chapters 64H and 64I of the General Laws to
apply the sales and use tax to certain services relating to computer system
design and to modification, integration, enhancement, installation, or
configuration of standardized or prewritten software.  St. 2013, c. 46, §§
48, 49, 89.  The changes were effective July 31, 2013.  TIR 13-10 further
provided that for the convenience of taxpayers and to facilitate
administration, transactions for July 31, 2013 should be reported and paid
together with August 2013 transactions by the September 20, 2013 due date
for August 2013 transactions.  

 

In light of public statements of support for repeal of these new tax
provisions by the Governor, the Senate President, and the Speaker of the
House, the Commissioner, under her authority in Chapter 62C, announces an
extension of the first due date for the reporting and payment of sales and
use taxes with respect to these services relating to computer system design
and to modification, integration, enhancement, installation, or
configuration of standardized or prewritten software.  Pursuant to this
extension, reporting and payment of these particular taxes that cover the
period July 31, 2013 – September 30, 2013 should be reflected on the
September return  due on October 20, 2013.  This extension is designed to
minimize administrative burden on vendors during a period when the
Legislature is likely to be considering repeal of these new tax provisions.

 

Caution:  This filing extension does not apply to returns and payments with
respect to any other sales or use taxes that are unaffected by the recent
law changes referred to above.  Sales and use taxes remain fully due and
payable on tangible personal property, which is defined to include transfers
of the use or access to standardized or prewritten software (whether such
software or the use thereof is transferred in tangible form, electronically,
or in any other manner).  Sales and use taxes also remain fully due and
payable on taxable telecommunications services.  Those returns for sales and
use during August are generally due on September 20, 2013 and that filing
date is unchanged.  

 

If the provisions of St. 2013, c. 46, imposing tax on certain software
services are repealed, the Department anticipates issuing further guidance
regarding (a) the requirement of vendor refunds to customers of any tax
collected from customers and (b) applications for abatement on any tax
remitted to DOR by vendors pursuant to the repealed provisions.  

 

 

 

 

 
/s/ Amy Pitter

 
Amy Pitter

 
Commissioner of Revenue

 

 

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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