Mass. ‘tech tax’ has firms eyeing R.I.

A new 6.25 percent Massachusetts tax on computer software and design services, called the “tech tax,” has one Dartmouth business considering a move to Rhode Island, according to an Aug. 23 report. More

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Mass. ‘tech tax’ has firms eyeing R.I.

Posted 9/10/13

DARTMOUTH – A new 6.25 percent Massachusetts tax on computer software and design services, called the “tech tax,” has one Dartmouth business considering a move to Rhode Island, according to an Aug. 23 report on southcoasttoday.com

CEO Andrew Faria of iMedia Solutions LLC told the website the move will be necessary for him to remain competitive.

“Our invoicing to our clients is so large that 6.25 percent will tack on another $10,000 to our invoices between now and December,” Faria said of the tax that went into effect July 31. “On the day the tax was passed, I had to add a $750 tax to a two-week contract that puts me completely out of the competitive edge against other states.”

The tax is intended to help fund transportation improvements in Massachusetts.

Some businesses have said the tax is vague about which technology services are to be taxed and there are some in the state urging a repeal of the tax.

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