Tech Tax Summit Planned

Gov. Deval Patrick on Wednesday acknowledged legitimate concerns and a detrimental “reputational impact” created by a new sales tax on computer services, and said he plans to meet next week in his office with legislative and business leaders to discuss a path forward.

“I guess I would say at this point I’m concerned but not alarmed, and I would say it that way because I think when we talk with people in the sector about the limiting interpretation that the Department of Revenue has put in place, their blood pressure goes down but the reputational impact of the alarm about it is very concerning, very worrisome and it projects something I think was not intended by the Legislature,” Patrick told reporters at press conference at the Old South Meeting House.

Patrick took questions for nearly half an hour in his first public availability in nearly a month following an extended stay away from the capital. He touched on a variety of hot button topics, including the tech tax, the planned closure of Vermont Yankee nuclear power plant, and his agenda moving forward.

Patrick said he has spoken with and invited House Speaker Robert DeLeo and Senate President Therese Murray to join business leaders in his office for a meeting next week to discuss the computer service tax and possible ways to alleviate industry concerns without jeopardizing the revenue earmarked from the tax for transportation investments. A DeLeo aide confirmed that he plans to attend the meeting.

“If there is to be a fix, then we need to have the whole conversation which is what do we replace it with,” Patrick said.

Florida Gov. Rick Scott used the new tax as an entrée to invite Massachusetts businesses down to the Sunshine State. In pushing to repeal the tax, the Massachusetts High Technology Council and the Massachusetts Taxpayers Foundation have both said the tax creates a danger for what is now a growth industry, and it could raise $500 million, far more than the $161 million anticipated by the Legislature.

On Thursday, the Marlborough Regional Chamber of Commerce voiced its opposition to the tax. Part of the reason for the decision to take a stance against the tax, the chamber said, was because of the small businesses it represents.

“Many of those businesses do not have the staffing or resources they must dedicate to analyzing and accounting for the tax they are now required to collect from their customers,” the chamber said in a statement. “Several communications our member IT companies have had with the DOR still offered little solutions to the questions our membership has about what is taxed and what is not. This has caused our members to expend resources they do not have and has caused the commonwealth of Massachusetts to expend resources via the DOR that could be used better elsewhere.”

Former Lt. Gov. Tim Murray, who took the reins of the Worcester Regional Chamber of Commerce this year, has voiced some concern about the tech tax as well, prompting the Massachusetts Republican Party to invite Murray to one of the business roundtables about the tax hosted by Republican lawmakers.

“I hope the former lieutenant governor can join Republicans as they work with software and technology job creators to undo the technology tax Mr. Murray once supported but now opposes,” MassGOP Chairwoman Kirsten Hughes said in a statement. “Given his unique perspectives, both a one-time tech-tax supporter and now business advocate and opponent, he could bring bipartisan support to the Republicans effort to support job growth for Massachusetts families.”

Democrats Defend Tech Tax Despite Repeal Effort

Quickly Passed, Implemented, Software Services Tax Hurts, Industry Says

New Mass. ‘Tech Tax’ Is An Attack On Innovation

Tech Tax: What Were They Thinking?

Chamber Music: Murray Striking Right Early Notes