[blahedo]

Holy crap, everyone here needs to take a deep breath. And, preferably, look at the law itself (not just this article). Despite the author wringing his hands and clutching his pearls about how this law is soooooo hard to understand, it's really not that complicated. It's a sales tax. It works like sales taxes tend to work, with similar distinctions between industrial product (sold as a good) and bespoke construction (sold as a service), and with similar handling of inter-state purchases (if you have a nexus in MA and sell to someone there, you collect, and if you don't have a nexus in MA, they're responsible for use tax).

Let's not mistake the fact that people don't like taxes for some sort of deep, abiding flaw in the legal situation.

(Now, the complaint that implementation was too sudden, that's totally valid. They should have had a several-month gap between passing the law and the tax kicking in.)

[loumf]

I am generally sympathetic to this point of view -- I am not against sales taxes, and as someone who has been in shrink-wrapped software for most of my career, I've had to deal with sales tax pretty much forever (and it's not a big deal, unless you have to deal with WA's per county rules)

In this case, though, they are charging sales tax on some services (that's what the law is about). It has to do with services tied to "goods" or pre-written software. So, integrating, customizing, installing, etc.

I believe that this is the area that might get amended or clarified soon (I have written the MA DOR about it, as I know many have). They need to clarify the line between bespoke and pre-written but customized a little better.

Also, I've heard a few time (but don't know if it's true) that this law is modeled on laws in 24 states. If true, then a lot of people on this list are probably supposed to be dealing with this already.