BIA to NH businesses: Beware of Mass. ‘tech tax’

FOR IMMEDIATE RELEASE
Contact: Adrienne Rupp
Business and Industry Association
Office: 603.224.5388 x114
Mobile: 603.731.7754
arupp@BIAofNH.com

BIA to NH businesses: Beware of Mass. ‘tech tax’

CONCORD, N.H. – Aug. 20, 2013 – The Business and Industry Association 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 New Hampshire 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 its members and any New Hampshire businesses, particularly businesses closer to the Massachusetts 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 Massachusetts, but also those who purchase across the border.

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

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About the BIA: The Business and Industry Association is New Hampshire’s statewide chamber of commerce and leading business advocate. The BIA represents more than 400 members in a variety of industries, including advanced manufacturing, high technology, professional services, financial services, health care, hospitality and tourism, public utilities, higher education and insurance. Member firms employ 86,000 people throughout the state and contribute $4.5 billion annually to the state’s economy. Through advocacy with state legislators and regulators, the BIA works to promote a healthy business climate and robust economic future for New Hampshire.

The BIA’s 2013 public policy priorities include: preserving the New Hampshire Advantage through  support of fiscally conservative state budgets with a business-friendly regulatory and tax structure; supporting business tax policies that foster economic growth; supporting infrastructure development; supporting efforts to increase the availability and affordability of housing for working people; supporting pro-business labor rules and regulations that consider the rights and responsibilities of workers and management; supporting efforts that enhance outcomes and reduce/slow the growth of total healthcare costs for employers and the state; supporting efforts to develop New Hampshire’s future workforce; working towards mitigating the long- and short-term costs of energy; supporting efforts to reform the state’s telecommunications regulations to ensure fairness and equal competition among all service providers; and supporting environmental policies, legislation and administrative rules that balance economic development with the long-term viability of the state’s natural resources through a collaborative process. For more information about the BIA, visit http://www.biaofnh.com/.