While many people in Massachusetts are hopeful that the "Tech Tax" that applies the state sales tax to certain computer system and software services will be quickly repealed, the fact remains that the tax is currently in effect. That means any business providing applicable services should have been collecting the 6.25% sales tax from customers starting on July 31, 2013.

However, given the confusion surrounding the implementation of the tax, and possible repeal of the tax, the Department of Revenue has extended the due date for the first reporting sales taxes collected under the "Tech Tax" provision from September 20, 2013, until October 20, 2013.

Please note that this deadline extension applies only to sales tax collected in relation to the "Tech Tax." All other sales tax reporting is still due by September 20.

What if the "Tech Tax" is repealed? The state anticipates issuing guidance on vendor refunds to customers who paid the sales tax, and abatements on any tax remitted to the Department of Revenue from the "Tech Tax."

For more details on the Massachusetts "Tech Tax," or for assistance with any other state or federal tax issue, please contact Gray, Gray & Gray's Tax Department at (781) 407-0300.