To the surprise of almost nobody, the Massachusetts legislature has voted to repeal the “tech tax” that went into effect on July 31, 2013. The amendment to the transportation bill that added state sales tax to certain computer services was not well received by the business community. Governor Deval Patrick, after first defending the tax, signed the repeal last week.
But what about those computer services companies and vendors who played by the rules and collected the 6.25% sales tax? According to guidance issued by the state’s Department of Revenue:
• Vendors that Have Collected but Not Remitted Tax must make reasonable efforts to return that tax to the retail customers from whom the tax was collected.
• Vendors that Have Filed Returns and Remitted Tax must electronically file abatement applications through the DOR website, no later than December 31, 2013.
This should close a brief and controversial chapter in the state’s tax history.
If you have a question about filing for an abatement, or need assistance in doing so, please contact Gray, Gray & Gray’s Tax Department at (781) 407-0300.