The Massachusetts legislature has acted swiftly in response to widespread criticism of the "Tech Tax" that was implemented in late July. Senate President Therese Murray and Speaker of the House Robert DeLeo have jointly announced an agreement to repeal the tax. A vote will probably come within weeks, and is expected to end the short, but controversial life of the law that applied the state's 6.25% sales tax to computer and software services.

The "Tech Tax" was complicated, loosely defined and widely disparaged as a deterrent to growth in the state's high-tech sector.

It is unclear at this time if the repeal will be retroactive or if the Department of Revenue will be collecting sales tax on applicable services for the period between the implementation and repeal of the law.

We will continue to monitor this repeal and keep you informed of any changes. If you have questions about this or any other tax issue, please contact Gray, Gray & Gray's Tax Department at (781) 407-0300.