Massachusetts budget proposes significant law changes

myStateTaxOffice

On January 23, 2013, Massachusetts Governor Patrick submitted his budget recommendations for Fiscal Year 2014 to the Massachusetts Legislature. The bill contains tax proposals that include: adopting a market based approach for services and other receipts, along with a 'throw-out' rule; taxing security corporations and utility corporations like other business corporations; repealing the FAS 109 deduction for eligible corporations; increasing the personal income tax rate to 6.25%; lowering the sales and use tax rate to 4.5%; and extending the sales and use tax to computer and data processing services and custom software.



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