Patrick signs ‘tech tax’ repeal

Gov. Deval L. Patrick signed the repeal of the controversial “tech tax” on Friday, The Associated Press reported. More

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Patrick signs ‘tech tax’ repeal

GOV. DEVAL L. PATRICK signed legislation on Friday repealing the "tech tax," which taxed certain computer services and caused backlash from business leaders and state representatives.
Posted 9/27/13

BOSTON – Gov. Deval L. Patrick signed the repeal of the controversial “tech tax” on Friday, The Associated Press reported.

The governor’s press office announced the signing on Twitter.

Earlier this week, the Massachusetts Senate and House each voted to abolish the tax, which subjected certain computer and software services to the state’s 6.25 percent sales tax.

Patrick himself proposed the tax earlier this year, but reversed his position after hearing complaints from Republican state legislators and local business leaders.

Although Patrick has indicated that lawmakers must find an alternative source of revenue to replace the estimated $161 million lost by the repeal of the tax, House Speaker Robert A. DeLeo has said there will be no new tax proposal to replace the tech tax.

Legislative leaders say they believe unanticipated gains in overall tax collections can make up for the loss in revenue, the AP reported.

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