House Repeals 'Tech Tax'
BOSTON — The House of Representatives on Wednesday repealed the much maligned "tech tax" that had been part of the revenue package in this year's state budget.
The addition of the 6.25 percent sales tax to software and computer design services had been estimated to raise $161 million this fiscal year but ran into trouble when no one could adequately explain how it would be implemented. The state's high-tech industry revolted, saying the tax would cost jobs and that its wording was too vague.
"I'm proud of the House's vote today to repeal the so-called tech tax. Our vote sends a strong message to the world that Massachusetts is the place for innovators to succeed and thrive," said House Speaker Robert DeLeo.
"Because jobs and economic growth are central to the House's agenda, I promised to listen to business leaders and House members on what the tax's impact would be when this measure was initially passed. After listening, we learned of the burden of this tax. Our strong commitment to business and the innovation economy led to its repeal."
The vote was 156-1. The Senate is expected to vote for repeal on Thursday.