Governor Patrick Thinks Twice About Tech Tax
WESTFIELD, Mass. (WGGB) — Although it kicked in just a month ago, President of Westfield’s computing company Epicenter Jeff Glaze wants to see it rolled back before it starts to negatively affect his business. “We compete nationally and internationally for services. That’s going to be a compelling factor for whether or not they have to pay the extra 6.25%. We feel its unfair because we have to compete with people all over the country, and let’s have an even playing field,” he said.
Governor Patrick said that the tax he signed into law in January was a “serious blot” on the state’s reputation, and that it should be repealed and replaced with another form of revenue.
In fact, House and Senate caucus republicans filed a bill at a Boston tech company Monday in order to repeal the tax, including Rep. Donald Humason. “The governor could file a bill that would repeal the language, we filed a bill Monday. Senate president and speaker could adopt that right away, at a formal session. We could do it today at informal session. It could be done fast if they wanted to,” stated Rep. Humason.
Rep. Humason feels that the 6.25% sales tax on computing and software will deter companies from coming to Massachusetts, and tarnish it’s rep as a high tech state.
The tax, originally put in place to raise money to make up for lost revenue in the state tax budget and for transportation. “We had a relatively good fiscal year last year, leaving over $600 mil more than we anticipated. So the reps. said, ‘hey look, we have money coming in, we’re doing better than we expected, let’s use this for transportation purposes, or to balance the budget. There’s no need to tax a new tax’” he added.
Until it’s repealed, computing companies might continue to feel the sting.
If house and senate leaders take no action, the matter could end up on the 2014 ballot.