Massachusetts Proposes Taxing Cloud Computing Services
March 25, 2013
Grazed from Forbes. Author: Reuven Cohen.
WBUR is reporting a new proposal to tax cloud computing services as part of Massachusetts Gov. Deval Patrick’s fiscal 2014 plan to boost state spending by $1.9 billion. Included in the budget is a $265 million line item that if accepted will see sales taxes expanded to include broadly worded “canned software.”
The tax would cover custom-designed software and services hosted on the Internet (aka The Cloud). “Custom” software includes the design and custom development of Web sites, so the cost to local businesses of a new Web site could increase by 4.5%…
The timing of this proposal is interesting, recently the U.S. Senate supported a non-binding vote of approval, 75-to-24, for a law that would allow states to collect taxes from Internet retailers. If enacted as is, it would allow states to levy taxes on some online retail purchases from businesses with over $1 million in gross receipts…
Read more from the source @ http://www.forbes.com/sites/reuvencohen/2013/03/25/massachusetts-proposes-taxing-cloud-computing-services/