BIA Says to NH Businesses, Beware Mass. Tech Tax

The Business and Industry Association in Concord  issued a statement alerting its members and the New Hampshire business community to the newly enacted Massachusetts ‘tech tax’ – a 6.25 percent sales tax on computer and software technology services that went into effect July 31.

This tax, which the Massachusetts Taxpayers Foundation has dubbed the “most onerous computer and software services tax in the nation” and claims it “will cause incalculable damage to job creation and the Massachusetts economy,” may inadvertently capture NH businesses with a presence in Massachusetts.

Businesses with a physical presence in Massachusetts, who are providing services covered by the tax to Massachusetts customers, may be subject to the tech tax. The definition of ‘a physical presence’ may be as little as a single sales representative with a home office in Massachusetts. BIA urges NH businesses, particularly those closer to the Mass. border, to seek outside advice and counsel if necessary to ensure they do not involuntarily succumb to a compliance nightmare.

“It is unfortunate that this tax may unwittingly capture some New Hampshire employers,” said BIA President Jim Roche. “We want to make sure New Hampshire businesses are aware of this new tax and acknowledge that it could possibly impact where they choose to do business and from whom they choose to purchase goods and services.”

The tax may impact not only businesses selling into Mass. but also those who purchase across the border.

For more information, visit the Massachusetts Taxpayers Foundation at www.masstaxpayers.org.