This summer we
alerted you that Massachusetts had broadened its sales tax
to apply to certain computer and software services. The
so-called "tech tax" generated substantial criticism,
particularly from technology companies that warned it would stifle
innovation and cost jobs. Governor Patrick and the
Legislature heard that criticism and have repealed the bill
retroactive to July 31, its effective date.
The repeal bill provides that any tax paid must be
refunded. If a vendor has collected but not remitted the tax,
it must make reasonable efforts to return it to the retail customer
from whom the tax was collected. If a vendor has remitted the
tax and filed returns, it must file an abatement application by
December 31, 2013. This deadline represents a special and
very short statute of limitations. No refund will be paid
until the vendor establishes that the tax has been repaid or
credited to the retail customer. In the case of vendors that
have filed returns,
